THE IMPACT OF CHINA’S FISCAL POLICY ON REAL GDP GROWTH AND NET GOVERNMENT LENDING
Keywords:
public debt, GDP growth, mortgage rate, local government financing mechanism, fiscal deficit, fiscal policy, net government lending.Abstract
Zhu Lihong. THE IMPACT OF CHINA’S FISCAL POLICY ON REAL GDP GROWTH AND NET GOVERNMENT LENDING
Purpose. The aim of article is theoretical and analytical research of the impact of China’s fiscal policy on real GDP growth and net government lending and developing recommendations regarding the future correction of fiscal policy in the context of new challenges.
Methodology of research. The following methods were used during the research: the system analysis method to collect, analyse and compare the scientific literature on the impact of China’s fiscal policy on real GDP growth and net government lending; the abstraction method – to systematically understand the challenges and opportunities in the process of shaping China’s fiscal policy, to develop effective proposals for shaping fiscal policy and its impact on economic results in developing countries; the visualization method – to present the research results.
Findings. The impact of government spending and taxation on China's real GDP growth is investigated. The relationship between fiscal policy adjustments and net government lending is identified. The relationship between fiscal policy changes and net government lending is investigated. The multiplier effect of the impact of fiscal policy on real GDP growth and the factors of its change are investigated.
Originality. The essence of fiscal policy in China, its impact on real GDP growth and net government lending are theoretically substantiated, measures are established to stimulate economic recovery, support liquidity and solving structural problems, and recommendations for future fiscal policy correction in the context of new challenges are improved.
Practical value. The results of the conducted study on the impact of China’s fiscal policy on real GDP growth and net government lending have practical value for developing countries in the conditions of fiscal policy adjustments in the context of new challenges.
Key words: public debt, GDP growth, mortgage rate, local government financing mechanism, fiscal deficit, fiscal policy, net government lending.
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