Research on regional economic high-quality development and fiscal policy regulation path based on data mining

Shuo Wang1, Zhicheng Xu 2
1School of Accounting and Finance, Taizhou Vocational College of Science & Technology, Taizhou, Zhejiang, 318020, China
2School of Bussiness Administration, Zhejiang Gongshang University, Hangzhou, Zhejiang, 310018, China

Abstract

Supported by the theory of economic growth convergence, this paper takes the eastern, central and western regions as the research object during 2010-2020, analyzes the economic growth convergence of the eastern, central and western regions of the country, and verifies the relationship between the regulation of fiscal policy and the high-quality development of the regional economy. Analyze the relationship between regional economic development, fiscal policy and economic convergence, and put forward the analytical view that fiscal policy affects regional economic convergence. The combination of dynamic panel model and absolute  convergence analysis is used to derive the results of the absolute convergence test of regional economic growth. Convergence role test for fiscal expenditure variables, transfer payment variables. It is brought to the western region to analyze the role of government expenditure in the western development policy on the convergence of the western region’s economy. Convergence  as well as absolute  convergence is conducted for each of the eight comprehensive economic zones, and the regional economic high-quality development policies are adjusted. Relative to 2010-2015, there is no convergence in economic growth in the western region in 2016-2020, and there is a tendency to divergence, which suggests that the fiscal policy of western development has limited effect on economic convergence among regional provinces. Absolute  convergence exists for the whole country and the eight comprehensive economic zones, and the convergence coefficient is significantly negative at the 1% level. However, the speed of convergence varies for high-quality economic development.

Keywords: economic growth convergence; absolute  convergence;  convergence; dynamic panel model; regional economy; fiscal policy