TITLE:
Research on the Relationship between Government Size and Economic Growth
AUTHORS:
Junjun Chen
KEYWORDS:
Government Size, Economic Growth, Fixed Effect Model
JOURNAL NAME:
Modern Economy,
Vol.11 No.2,
February
4,
2020
ABSTRACT: This paper studies the relationship between
government size and local economic growth in China. This paper uses the annual
panel data of 29 provinces, municipalities and autonomous regions from 2007 to
2017 to use a fixed effect model for regression estimation. It is concluded
that there is a significant positive correlation between the scale of local
government and local economic growth. In the regional heterogeneity regression
estimation, we found that the relationship between government size and economic
growth is not significant in the eastern regions, while the relationship is
significant in the central and western regions, which is a positive correlation.
After using the robustness test of the replacement explanatory variables, the
conclusions remain consistent.