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An Empirical Study on China's Provincial-Level Region's Administrative Expenditure and Administrative Cost

To cut government administrative expenditure and improve the efficiency ofpublic administration is an important research area in the field of publicadministration research. This article analyses the administrative expenditure conditionand c
Submitted On: 04-05-2010 | Views:	Article Tools:

To cut government administrative expenditure and improve the efficiency ofpublic administration is an important research area in the field of publicadministration research. This article analyses the administrative expenditure conditionand causes of China's 29 provincial-level regions between 1995 and 2006 by applyingstatistical analysis methods, such as Correlation Analysis, Multiple Linear Regression.The research result reveals that Coefficient of Elasticity(CE) between administrativeexpenditure and fiscal revenue in 19 provinces is over 1, 13 provinces' CE betweenadministrative expenditure and fiscal expenditure is over 1. Based on the results above,Analysis of Partial Correlation and Multiple Linear Regression shows governmentrevenue is the most important factor of the huge amount and rapid growinggovernment administrative expenditure in China. The result of comprehensiveevaluation(2006) and cost index(2000-2006) of 29 provincial-level regions'administrative cost shows: Tibet Autonomous Region ranks First as far asadministrative cost is concerned, and by contrast, Fujian Province has the lowest cost.The administrative cost index of 2000-2006 indicates the growth rate of countrylevel of is 7.81%, there are 10 provinces which have a higher growth rate comparedwith the country level, and the administrative cost index in other 19 provincial regionsare lower than the average level.

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