Research On The Receipt And Expenditure Factors Of Funds For Public Goods In Rural Area Within The Public Finance System

The traditional research on public goods supply in rural areas mainly focus on the how to eliminate the externality of public goods and discussion about the state and local government supply duties. Provided that the village committee is not only a villagers’autonomous organization, but also bears some government functions, the public goods supply in the rural areas presents certain complexity features. However, local governments have the right to make flexible choice for distributing the state and local government investment. In fact, the financing constraints of public goods limit the access and use of funds for public goods in rural areas, and lead to the regional and urban and rural differences. Therefore, this paper concentrates on the revenues and expenditures of public goods to illustrate the characteristics of public goods supply in rural areas from the mechanism perspective. The contents and conclusions of this paper are as follows:1. Investigated the changes of Chinese rural public goods supply system, and analyzed the characteristics of public goods supply in rural areas under the public finance system; explained the financing and overall effects of rural public goods supply; by the typical case study, the internal public goods supply within the village was discussed in order to support the further empirical research.2.The great differences between urban and rural public infrastructure investment fully demonstrated the effect of financing constraints on the supply of public goods. Impact which tax decentralization, debt financing, the effect of capitalization of public goods, and transfer payments had on rural and urban fixed asset investment is examined by the Sys-GMM model through the empirical studies of the provincial panel datas. The study shows that:the degree of fiscal decentralization did not have the direct influence on the supply of urban and rural infrastructures, but it had a significant influence on the agricultural fixed assets; land-based finance increased the level of agricultural production investment, and had important role in the rural sectors; urban public goods spillovers inhibited the construction of public facilities in rural areas and provides the basis for the layout of the integration of urban and rural public goods. From a macro perspective, rural infrastructure construction financing was inclined to agricultural fixed assets investment, and transfer payments for rural and agricultural fixed assets did not achieve the expected results.3. Public spending in rural areas is rooted in the unique "village finace" system, and displays the double imply of the autonomy of villagers and state will. It Is not only affected by the village of individual character, but more constrained by the policy environment. The microsurvey data provides possibility to study this problem, and mutil-level mixed-effect model is excelled at such problems. On top of that, this paper analyzed factors affecting the rural public service, administrative and production expenditure, and made empirical studies on macro policy conduction mechanism and the micro aspects of the financing characteristics. The results revealed: the villages which obtained more transfer payments had more public service and productive public service spending; the public expenditure of villages which has collective enterprises is higher; Fiscal policy tends to agricultural production investment; preferential policies to grain producing areas benefit the rural public services; larger proportion democratic election areas had a larger administrative spending, but this didn’t have influence on the public service supply.4. As the performances of the project mechanism in village, the "project into the countryside" attracted the attention of many scholars. By empirical way, the paper explained the its features in village level to prove the its university in the state. By the multinomial logistic model on the date of CFPS, this paper studied the factors affecting rural funds transfer payment. The study shows: the distribution of different types of transfer payments amount in rural areas is so verified that the principle of fairness is mainly reflected in the allocation of smaller amounts of transfer payments and the larger amounts are more accessible for the villages in better economic and social conditions. Therefore, the structural imbalances characteristic of transfer payments in village level was noteworthy.In conclusion,"self-sufficiency"of village and special funds from superiors functions together on the supply of public goods in rural areas. At last, this paper puts forward relevant policy suggestions.