Font Size: a A A

Fiscal Decentralization, Local Government's Behaviours And Regional Economic Growth

Posted on:2009-05-26Degree:DoctorType:Dissertation
Country:ChinaCandidate:W J WangFull Text:PDF
GTID:1119360245471328Subject:Regional Economics
Abstract/Summary:PDF Full Text Request
The dissertation mainly explores the relation between the fiscal decentralization and region economy growth. It's still an open question between scholars about how the fiscal decentralization influences region economy growth. So we can't explain why the fiscal decentralization benefits the region economy growth, but has negative effects to the others'. This research try to answer it .by analysing the local government behavior's characteristic of every region. Moreover, it reveals the way of the fiscal decentralization influencing the economy growth initially.The local government becomes independent economy body and hold more power to allocate the own district resources under the fiscal decentralization system. Though every local government have the same motive to maximize the own interest, the local governments in different regions can adopt the different behavior patterns, which will bring the different influence to the region[0]al economy growth. It should be the basic reason that the fiscal decentralization's economy growth effect is different among the different regions. This research has shown the five points. (1) The nonagricultural economy and privately owned industries more developed[0]. the"grab hand"from the local government will be more limited. So the fiscal decentralization system in China benefits the east area's economy growth and doesn't benefit the middle and west area's economy growth, because the east area has more nonagricultural and privately owned industries than the others. (2).The fiscal decentralization benefits the regions which have more developed market institutions. but can hurt the other regions. That is, the fiscal decentralizing reform can't benefit those regions that have more planned economy factors to realize the economy transition. (3).With the fiscal decentralization proceeds more and more, the local governments intensively contest for all sorts of the flowing economy resources. In case of the contest for FDI, the local governments'excessive compete for the FDI may offset the positive effect of FDI to economy growth. (4) There is not"the vote from hands"mechanism and"the vote from foots"mechanism while there is the fiscal vertical imbalance so that fiscal decentralization promotes the expanding of local government in China. So it proves a significant deduce that the centre can't restrain the local government behavior efficiently and prevent it from hurting the region[0]al economy growth. The efforts from the centre government are difficult to lessen the regional difference of fiscal decentralization's economy growth effect and help the developing area to overcome the negative influence from the fiscal decentralization.(5) After the centre government has carried out the fiscal decentralization reform, the local governments have more power of allocating resources. If the local government behavior is not governed efficiently, it can hurt the region[0]aleconomy growth, enlarge the difference of economy growth and public product's provision, and postpone the economic transition process in some regions.The dissertation's theoretic contribution lies in two aspects. (1). In the aspect of theory, it explains why the fiscal decentralization benefits some regions'economy growth, but hurt the others'. It proves the issue that the fiscal decentralization promotes the economy growth with the support from the other institution and economy development environment. That is, the fiscal decentralization reform can promote the economy growth while reforming the other economy institution and adjusting the economy structure. Or this reform can bring out the negative effect. (2). In the aspect of methodology, the dissertation originally reveals by which a way the fiscal decentralization influences the region economy growth in China and the other transitional countries. It contributes to the related theory's development. In the same time, we find that the centre must notice the difference of every region's economy development level and environment when we will carry out the fiscal decentralization reform, in order to promot the economy growth.The dissertation arrives the point that we should draw up the norm and stable fiscal institution, make clear the local government's responsibility, and carry out the fiscal decentralization system in order to provide the full basic public serve. The grant system should be normalized in order to help the local government perform the public responsibility, and the examination system to the local government'official should be reformed, in order to make the local government'official exert themselves to promote the region economy development. So we can maximize the fiscal decentralization's economy growth effect in order to make Chinese economy system realizing the transition, strengthen the economy growth potentialities and improve the people's living level.
Keywords/Search Tags:Fiscal Decentralization, Local Government's Behaviour, Regional Economy Growth
PDF Full Text Request
Related items