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A Study On The Impact Of Fiscal Decentralization, Transfer Payment And Expenditure Preference On Intra-provincial Equalization In Public Services

Posted on:2018-05-24Degree:DoctorType:Dissertation
Country:ChinaCandidate:X C ChenFull Text:PDF
GTID:1316330542953491Subject:Public Governance and Public Policy
Abstract/Summary:PDF Full Text Request
Since the reform and opening up,Chinese decentralization movement have increased the economic power of local government,creating a world-renowned economic miracle at the same time.Local competition which caused the regional economic gap was also expanding the regional public service supply inequality.The shortfall in supply of public service is summed up as the cost of "the competition for growth",where means to win the economic competition,local government invest as much as possible in the economic construction,while ignoring the social construction and public services.As economic competition caused by the local financial gap widened,the regional differences in public services experienced a growing trend.However,with the establishment of the main body of social policy in the new century,the social security system has been gradually improved,and more financial resources have been used to protect the people's livelihood.At the same time,the calculation of the status of public services in the prefecture-level cities also showed that there was a significant regional equalization trend into the province's public services between 2003 and 2012.For these new trends,it means that it is difficult for the traditional theory to respond effectively which was based on the problem of how the public service difference is generated.It needs to be updated and supplemented in theory and then made more scientific analysis and conclusion.This paper makes a systematic generalization of the mechanism of regional public service equalization,and the reason why the regional public service equalization is generated is that the objective function followed by the local.The local government is out of the single economic competition goal.The "incentive" utility of economic competition and the "health care" utility of social construction determine that local governments should achieve the goal of "winning the competition" in economic growth and achieve the goal of "crossing the bottom line" in social construction.In other words,as long as the local government through "qualifying" of the social construction,it can be eligible to participate "tournament" of the economic field.Under this composite objective function,the local government adopts the ‘guaranteed supply' model in the supply of public services.Local finance will stop further investment after satisfying the basic social construction and public service demand.It will be as much as possible to invest in economic competition.The "guaranteed supply" of public service of the local government makes the level of public service form convergences at the bottom line position,resulting in the equalization of regional public service.The key to the mechanism of regional public service equalization is to unify the local government's relationship between affairs responsibility and financial resources.Only when the local government has the power to match with the financial resources,the supply of public services can be carried out smoothly.The decentralization of financial expenditure for the local financial resources plays a fundamental role in the protection of a province's internal financial expenditure resources.The more decent have been placed down to the prefecture-level city government,the more abundant the resources of the prefecture-level municipal government,the more able to pay the bottom line of public services.In addition,under the coordination of the horizontal equalization of fiscal transfer payments,the financial resources of decentralization will be allocated to the grassroots government in a more balanced way.In the proportion of social construction and public service supply,the strengthening of social spending preferences will enhance the sink financial allocation.On the other hand it also enhances the rigidity of public service expenditure,thus strengthening the protection of public service supply bottom line.Empirical studies support the conclusions above.On the basis of constructing the public service index system,using the inter-provincial panel data from 2003 to 2012,the degree of regional public service equalization is pointed out by measuring the coefficient of variation of the public service index of every provincial prefecture-level city.The results of the regression model of panel data show that the complementarity of fiscal expenditure decentralization in the province effectively contributes to the equalization of regional public services for the local government's financial resources,and the horizontal financial balance and the social expenditure preference and the fiscal expenditure decentralization have the influence of the equalization of the regional public service.The horizontal financial equalization of function of financial transfer payment and the strengthening of social spending preferences on the basis of the decentralization of fiscal expenditure,Which will help to strengthen the decentralization of fiscal expenditure to promote the equalization of regional public services.The structure of the dissertation is arranged as follows.This paper puts forward some questions,points out the importance of regional public service equalization in the process of welfare transition,and points out the positive phenomenon that the raising level of public service supply and the narrowing of regional gap in China.The first chapter classifies the existing literatures related to the subject of this paper,and extracts the main influencing variables,and constructs the main propositions of this study.The second chapter through the design of the public service index system,measures the equalization of regional public services,and makes a comprehensive evaluation.In the third chapter,according to the trend of regional equalization in China,the theoretical mechanism of its formation mechanism is explained systematically,which provides a theoretical framework for the interpretation of phenomena.Combined with the main influence variables,the fourth part puts forward the theoretical assumptions according to the third chapter of the theoretical framework,and manipulates and measures the main influencing variables,and describes the impact of control variables such as relevant economic and social factors.In the fifth chapter,the panel data model is used to test the proposition hypothesis.The sixth chapter explains the findings of the study and the relevant policy recommendations,and prospects for future research.
Keywords/Search Tags:Regional Equalization, Public Services, Fiscal Decentralization, Transfer Payment, Government Expenditure Preference
PDF Full Text Request
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