Regional Financial Development, Financial Expenditure and Economic Welfare——An Empirical Study Based on Provincial level Dynamic Panel Data
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Abstract Using dynamic panel data model，the authors conducted GMM based on the panel data from 21 provinces and cities and examined the relationship between regional financial development, local government financial expenditure and the economic welfare. The results obtained are as follows: the effect of regional financial development on economic welfare is relatively weak, financial expenditure promotes the improvement of economic welfare effectively within the region, but local governments are faced with the contradiction of “welfare magnets”. In the study of different regions, the authors found that the influences of financial development and government spending on local economic welfare are quite different.
MA Xue-Ban,HU Jian-Guang. Regional Financial Development, Financial Expenditure and Economic Welfare——An Empirical Study Based on Provincial level Dynamic Panel Data. Economic Survey, 2012, (1): 037.
2012, Vol. 
