Abstract This paper empirically researches the economic growth effects of the public expenditure structure by analyzing the time series data from 1978 to 2010 with VAR, VEC. The results indicate: the public investment expenditures have positive effect on economic growth in a short run, but it will produce negative effect in a long run; the government administrative expenditures will be conducive to economic growth in the short run, but it will restrain economic growth in a long run; the public expenditures on culture, education, science and health have sustainable economic growth effects; the fiscal transfer payments have a positive effect on economic growth in a long run, but its contribution rate is lower. Therefore, it is necessary to optimize the public investment expenditure structure, improve the efficiency of government administrative expenditures, and increase the expenditures on culture, education, science, health and fiscal transfer payments to promote economic sustainable growth.
2013, Vol. 1 
