Lee, J.C.; Won, Y.J.; Jei, S.Y. Study of the Relationship between Government Expenditures and Economic Growth for China and Korea. Sustainability2019, 11, 6344.
Lee, J.C.; Won, Y.J.; Jei, S.Y. Study of the Relationship between Government Expenditures and Economic Growth for China and Korea. Sustainability 2019, 11, 6344.
Lee, J.C.; Won, Y.J.; Jei, S.Y. Study of the Relationship between Government Expenditures and Economic Growth for China and Korea. Sustainability2019, 11, 6344.
Lee, J.C.; Won, Y.J.; Jei, S.Y. Study of the Relationship between Government Expenditures and Economic Growth for China and Korea. Sustainability 2019, 11, 6344.
Abstract
On October 18, 2017, Chinese President Xi Jinping presented the blueprint for building a modernized socialist nation through the realization of the Xiao Kang (Every nation enjoys a peaceful and affluent life, it is meaningless to eliminate the poor) social construction at the 19th Congress of China. Subsequent to the 2008 financial crisis, the world has moved on to the new economic status of the New Normal. China has also entered the era of “Xinchang Thai,” which is moving from the high-growth to the moderate-growth phase. Therefore, the government of China emphasizes privatization, liberalization, and deregulation. China is also influenced by government policies due to the nature of socialism. This study confirms China’s current stage of economic development based on Barro’s theory. Thus, we use a quantile regression model and examine the correlation between economic growth and functional classification of government expenditure during Xi Jinping's term of office. Furthermore, we selected Korea as a comparative country as the two countries have common features.
Keywords
Xinchang Thai; quantile regression; functional classification of government expenditure; Xiao Kang
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
