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Study On The Economic Effects Of Fiscal Policies On Industrial Structure Adjustment

Posted on:2013-03-29Degree:DoctorType:Dissertation
Country:ChinaCandidate:S GuFull Text:PDF
GTID:1109330452963436Subject:Public Finance
Abstract/Summary:PDF Full Text Request
In the process of industrial structure adjustment, the market is foundational andthe major mechanism is the price and supply-demand mechanism. The Governmentis supplementary to guide market. When just depending on market competition,market mechanism can not correct deviation of industrial structure automatically, thegovernment should supplement market through industry policies to promote or hinderindustrial structure adjustment, optimization and promotion. Since the reform and openness,China’s industrial structure adjustment and upgrading have been more quickly andimproved the industrial structure obviously, promote sustainable, stable and healthyeconomic development. However, before the reform and openness, the industrialstructure was in long-term planning economic system, which through administrativemeasures, the supply of influence, and still has a major impact to the currentindustrial structure,which made China’s industrial structure has a long distance to theindustrial structure in the system of market economy. The distortion of industrialstructure has affects economic growth seriously. Although the contradiction of theindustrial structure is not the same each time, but more or less had relevant withinvestment pull, regional segmentation, structure convergence.In the view of pathdependence we can discover this phenomena and the local government economybehavior are inseparable, which decided by the financial system. China’s industrialstructure adjustment is difficult, one of the most important reasons is that necessaryreform of the financial system has not kept up with, and not through the marketmechanism. There is a dual contradiction of "market failure"and"governmentfailure"in industrial structure adjustment in China. So combining the industrialstructure theory with financial theory organically and studying the role of fiscalmeasures in the industrial structure adjustment, and on the base of deep analysis ofthe status quo of the industrial structure and fiscal policy in our country summarizingthe effect of fiscal policy to industrial structure, and then proposing fiscal policysuggestions in industrial structure adjustment,in order to establish that is good for thetransformation of economic development pattern and the upgrading of the industrialstructure, has some theoretical and practical significance.Based on establishing the theory system of fiscal policies for industrialrestructuring, and on the basis of China’s problems and social characteristics in industrial structure adjustment, using econometric and statistical analysis methods toevaluate and empirically analyze the effect of fiscal policy on industrial structureadjustment. This Ph.D. Thesis consists of seven chapters. The first chapter isintroduction, which introduces the background and significance, frame, theoreticalfoundation, research methods of this paper. The second chapter is the theoreticalfoundation, which summarizes the related theory basis of fiscal policy that promoteindustrial structure adjustment, including industry economics, growth, and publicfinance theory, industrial organization theory, the system economics, governmentregulation theory, etc., and summarizes related research achievements in theory andapplication in industrial structure adjustment. The third chapter is the financialmechanism analysis to adjust the industrial structure, which firstly analyzes thegeneral mechanism of finance affecting industrial structure, and then divides fiscalpolicy into tax policy and expenditure policy, and divides expenditure policy intofinancial capital expenditure, government subsides and government procurement,and analyses the effect of every part on industrial structure, and at last reviews thefiscal policy and its influence on industrial structure since reform and opening inChina. The fourth chapter from the view of tax income growing faster than GDP inour country, analyzes the structural characteristic of the phenomenon, throughestablishing theory model of the source of macro tax burden, decomposes the data ofmacroscopic tax burden’s source and constitution, calculating the contribution ofindustrial structure vicissitude to tax-exceeding-GDP growth since Reform andOpening-up. The fifth chapter from two view of fiscal decentralization—the localgovernment competition and longitudinal transfer, tests the reasons of industrialstructure convergence in our country and the role of transfer payment in promotingindustrial structure integration empirically. The sixth chapter firstly works out ourcountry and three industries’ technology progress rate and technical efficiencythrough stochastic frontier production, and then divides fiscal policy into fiscalrevenue, fiscal expenditure, fiscal transfer and fiscal decentralization degree,researches effects of fiscal policy on industry technology progress and technologyefficiency in our country comprehensively. The last chapter is conclusion andresearch perspective.The empirical results show:(1) After the tax-sharing reform, the influence ofchanges of industries’ own tax burden to macroscopic tax burden strengthensunceasingly, which is mainly caused by the rise of the second and tertiary industry’s own tax rate and the drop of the first industry’s own tax rate. In other words, the riseof the second and tertiary industry’s own tax rate is the main reason oftax-exceeding-GDP growth in our country recently.(2) The government taxcompetition variables measured by tax revenue and enterprise income tax haspositive impact to industrial structure convergence significantly, which means localgovernments pursuing financial benefits that they can control will exacerbateindustrial structure convergence.(3) The local government promotion variablesmeasured by GDP growth rate has significant positive impact to industrial structureconvergence, which means that industrial structure convergence is more likely tooccur in the region that political promotion that is more competitive. The economicdevelopment level disparity measured by per GDP has significant negative influenceon industrial structure convergence, which means backward areas carry out"surpassing strategy" in order to narrow the gap with developed area, but they ignoretheir own resources endowment and comparative advantage, which eventually led toindustrial structure convergence with the developed area.(4) Transfer payments havea significant positive effect on the industrial structure convergence, which means thetransfer system in our country has not played a proper role to promote industrialstructure integration and affect local government behavior weakly.(5) Financialincome has no significant influence on the national and regional industry technologyprogress, but has significant influence on technical efficiency, including positiveeffect on the east and negative on the central and western. Financial expenditure hasa significant negative effect on technology progress rate in national and east areas,and has a significant influence on technical efficiency in the east and positive in thecentral and west.(6) Transfer payments have a significant positive impact ontechnology progress rate in most areas, but have no effect on technical efficiency.Fiscal decentralization can promote technology progress, but is not good fortechnical efficiency progress.This paper suggests:The tax burden of the first industry should continue tomaintain a low level, and the second industry tax should be adjusted, in order topromote the second industry’s development from extensive pattern to intensivepattern, and reduce tax burden of the third industry. Promoting market processvigorously in order to change government functions from economic participants tosupporters that maintenance economic rules. Completing the governmentperformance evaluation mechanism, and lowering the importance of indexes such as GDP and financial revenue growth. The transfer payment from central governmentto local government should be regulated, the proportion of special transfer paymentsshould be improved. Guiding domestic enterprise, especially non-state-ownedenterprises to invest into technology innovation and invention through tax policy,and giving all area foreign enterprises "national treatment", and adjusting andoptimizing the structure of the local government spending. The fiscal appropriationof technology innovation should be strengthened, and local government tax incomeshould be standard. Straightening out transfer payments relationship between centraland local governments and increasing transfer payment of science and technology.
Keywords/Search Tags:industrial structure, fiscal income, fiscal expenditure, transfer payment, fiscal decentralization
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