Research On The Fiscal Policy Of Balancing Urban And Rural Development

The next ten years is the key period of Chinese reform in terms of relieving dual economiccontradiction and realizing the integration of urban-rural economy. In this process, urban andrural development is the ultimate way to solve these problems. It is also an important drivingforce to promote Chinese economic growth, social harmony and development since now.Unbalanced development between urban and rural areas has been an issue since a long time inChina. It has a long way to go, however, narrowing the gap between city and countryside andsolving the problem of uncoordinated development are the inevitable requirement for themodernization, and it is also an urgent need for the development. Urban and rural developmentis an important work of the Party since the16th national party congress. It is viewed as the firstpurpose of the strategic thought of balancing urban and rural development. The integration ofurban and rural development is recognized as a fundamental way to solve the “Agriculture,Countryside and Farmer” problems and it promotes the common prosperity of urban and ruralareas in the18th national party congress report. In recent years, the government, which is themain responsibility to promote balancing of rural and urban development, issues manyimportant documents to promote urban and rural development and the relevant supportingpolicies making full use of fiscal policy macroeconomic regulation and control functions,promoting the reform of the financial system, striving to build a conducive in order to promotethe system of Chinese fiscal policy of balancing urban and rural development.Based on the analysis of the domestic and foreign relevant research, in terms of dualeconomic theory as well as externality theory, this dissertation applies the method of historicalanalysis and logic analysis, literature review and realistic survey, questionnaire and statisticmodel, empirical research and normative research. This analysis also combines with fiscalpolicy that plays a role in the process of overall urban and rural development. It conductsanalysis on the existing fiscal policy problems of the urban and rural dual economic structurein the macro perspective. Finally, it concludes the corresponding countermeasures, suggestionsand safeguard measures.Firstly, the role of fiscal policy in promoting urban and rural development is analyzed inthis dissertation. From the main function of fiscal policy, the respective role boundary ofgovernment and market and intergovernmental fiscal function is defined reasonably. Theinfluential factors of decision-making behavior of the government and the farmers are analyzedapplying “the game theory” in the process of balancing of urban and rural development. Then,the necessity of the reasonable fiscal policy to promote urban and rural development generatedby the government is explained. Meanwhile, the guide effect, the multiplier effect, the equilibrium effect and the welfare effect of fiscal policy in promoting urban and ruraldevelopment are stated. Based on the information above, the dissertation concludes that the fulluse of the fiscal policy plays a leverage role in promoting urban and rural development.Secondly, the status and effect of fiscal policy in promoting urban and rural developmentis studied. Starting from the exploration of the evolution process of the relationship betweenurban and rural in China, according to the main characteristics of the development relationshipand the evolution between urban and rural areas, the author divides the developing process ofrelationship between urban and rural areas into four stages, dual structure preliminaryformation stage, urban-rural separation development stage, adjustment and opposition stage,and urban and rural development practice stage under the government guidance. Therefore, thisdissertation analyzes the current fiscal policy and summarizes the effect of fiscal policy inpromoting urban and rural development with the main means of fiscal policy as a starting point.Additionally, the effects evaluation system of fiscal policy in promoting urban and ruraldevelopment is constructed in this dissertation. The current effects evaluation system of fiscalpolicy in promoting urban and rural development is evaluated comprehensively. It determinesthe overall thought and objective of fiscal policy effect evaluation in promoting urban and ruraldevelopment. The information system of fiscal policy effect evaluation in promoting urban andrural development and the establishment of a scientific evaluation index system of the policyeffect are discussed in this dissertation and it briefly analyzes the index of calculation methodand the meaning. The decision-making system of fiscal policy effect evaluation in promotingurban and rural development is constructed. It expounds the basic principle and steps ofstructural equation modeling theory, puts forward the assumption of the model, designs thequestionnaire and determines the data pretreatment method and analysis benchmark. Usingstructural equation model, it comprehensively evaluates the fiscal policy in promoting urbanand rural development and discusses existing problems of fiscal policy.Fourth, foreign experiences and enlightenments of fiscal policy in promoting urban andrural development are summarized in this dissertation. Referring to the fiscal policy to promotebalancing urban and rural development in the US, Germany, Japan and the UK, it inspects theorigin and evolution of national policies with inspiration and guiding role of theory and alsopractice to establish the system of fiscal policy to promote urban and rural development andprovides some ideas to promote the development of our country in order to formulate fiscalpolicy co-ordination of urban and rural adjustment.Last but not the least, the safeguard measures of fiscal policy of urban and ruraldevelopment is promoted by the solutions proposed in this dissertation. The fiscal policy couldbe improved in the following five aspects, the responsibilities among the governments, thestructure of fiscal expenditure, transformation of payment policy, and the system of local tax policy and the security of finance situation in county level. With that, the development ofeconomy and social status among various locations will be improved harmonically andcompletely. The security of fiscal policy of urban and rural area should be executed byconsidering constituting reasonable and scientific policy, reforming fiscal expenditure policy,inventing modes of fiscal supervise and exploring reform of fiscal policy. The constructivesuggestions are given for the system of the fiscal policy reform and construction of China.