An Empirical Study of the Relationships between Financial Expenditure, Urbanization and Economic Growth in Western China
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An Empirical Study of the Relationships between Financial Expenditure, Urbanization and Economic Growth in Western China
YUAN Dan1, LEI Hong-zhen2
(1.School of Management, Xi’an University of Architecture & Technology, Xi’an Shanxi 710311; 2.International Business School ,Shaanxi Normal University, Xi’an 710119,China)
Abstract According to the data during 1993-2011, the paper does an empirical analysis about the dynamic relationships between financial expenditure, urbanization and economic growth in western China by using a VAR model, and it also analyzes the long run co-integration relationship. It concludes that: (1) Three variables together are the Granger cause to any one of them. (2) In the short term, economic growth is positively influenced by urbanization with a bigger coefficient of the third lagged of urbanization, and gives a slower positive response to the impulse of urbanization. Urbanization is mainly influenced by economic growth, and gives a quicker positive response to the impulse of economic growth. It also influenced by the third lagged of financial expenditure positively. (3) Financial expenditure, urbanization and economic growth have the long-term co-integration relationships, and urbanization promotes economic growth in western China.
YUAN Dan,LEI Hong-Zhen. An Empirical Study of the Relationships between Financial Expenditure, Urbanization and Economic Growth in Western China. Economic Survey, 2015, 31(4): 019.
2015, Vol. 31 
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