The causality between China´s fiscal expenditure on science and technology and industrial structure rationalization: An empirical study

Under the context of Chinese current economic development stage, industrial structure rationalization is the focus of industrial structure adjustment. Using the improved structure departure degree model, we constructed the quantitative index of industrial structure rationalization. Meanwhile, based on the samples which are the time sequence data from 1985 to 2012, the thesis made quantitative analysis through the co-integration test and Granger causality test to research the relationship between fiscal expenditure on science and technology and industrial structure rationalization. The results of our study showed that the presence of long-term stable equilibrium relationship between fiscal expenditure on science and technology and industrial structure rationalization. Furthermore, increasing fiscal expenditure on science and technology could effectively promote industrial structure rationalization, and industrial structure rationalization could not necessarily lead to the increasing of fiscal expenditure on science and technology.