An empirical study on the effect of Chinese government's non-tax revenue spending on its GDP's growth

This paper presents the growth effect of Chinese government non-tax revenue spending on its Gross Domestic Product (GDP) using the variance Decomposition Technique. The results show that Government Purchase (GP) expenditures have a significant explanatory power on the long-run economic growth. Whereas, Government Non-Tax Revenue Expenditure (GNR) and the Government Fundamental Investment (GFI) have limited impact on the rate of long-run economic growth.