| Summary: | 碩士 === 世新大學 === 財務金融學研究所(含碩專班) === 101 === Government support of investment projects in the private sector helps economic growth. Through its financial expenditure, government may affect physical capital, human capital, protection of property rights and development of legal environment, and enhances economic growth.
Based on endogenous economic growth theory, this study uses economic growth in Taiwan (represented by GDP growth), and time series data of scale of financial expenditure, to develop a regression model in which economic growth (GDP growth) is the dependent variable and scale of financial expenditure is the independent variable, and conducts a theoretical analysis of the relation between scale of financial expenditure and economic growth in Taiwan.
This paper finds that during the 40 years from 1970 to 2011, financial expenditure in Taiwan had substantial influence on economic growth but showed deferred effect. Financial expenditure affected most in the third year after the year of administration objectives, and then the effect diminished gradually. Therefore, a long-term, stable financial system and increased financial expenditure are needed in Taiwan, as well as better supervision, examinations and assessment for financial expenditure, so that higher capital efficiency for financial expenditure can be reached, faster economic growth can be attained and better economic development and social stability can be achieved.
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