An Empirical Study on Correlation between Fiscal Revenue and Fiscal Expenditure in Jiangxi Province

摘要

After making an empirical analysis on the fiscal revenue and fiscal expenditure in Jiangxi from 1978 to 2006 by means of co-integration tool, this paper aims to establish and conduct the error-correction model (ECM) established an analysis of Granger causality for the relationship between the fiscal revenue and the fiscal expenditure. The findings show that there is one-way Granger causality between them, and the fiscal expenditure is the Granger cause of the fiscal revenue.