Economic analysis on the implementation effect of the proactive fiscal policy in Liaoning

Based on the Liaoning economic time series data from 1985 to 2009, The paper applies VAR mode and VEC model to analyze the implementation effects of fiscal policy in Liaoning. The empirical study indicates that among fiscal expenditure, money supply, and real GDP in Liaoning, there exists a co-integration relationship. Fiscal expenditure will promote the economic growth. It can be supported by relevant empirical tests that the proactive fiscal policies which were implemented in Liaoning have a long effect on the problems of driving investment, stimulating economic growth, adjusting the industrial structure, and solving the insufficient domestic demand and so on.