The Research on Relationship of Local Fiscal Expenditure for S&T and Economic Growth - Based on Cointegration and VAR Model Analysis

The local fiscal expenditure for science and technology(S&T) and the economic growth are two interactional facors in an economic system. Basing on the sample of Fujian Province in China, we estimate the long-term and short-term elasticity of the local fiscal expenditure on the economic growth, and then study the interaction between these two factors. We find that the lag effect and the long-term interactive effects exist between them, the local fiscal expenditure for S&T play a more important role on economic growth of Fujian province in long-term than short-term.