A Qualitative Study on the Value of Governmental Economic Service

Abstract

The function and role of government in economic development always attract our attentions. This paper mainly tries to establish GM(1，N) model with the insufficient index system for economic development to define the economic service value of government, which gets ready for the next stage of measuring it. We find that the government scale of China is proportionate under the assumption targeting on economic development, and it improve the economic development in China. However there is a problem on the governmental consumption and it retards the economic development in China. Eventually we propose Chinese government should first dig out the Service Value from itself and see government as a node while the market functions.