Financial Status Deepening, Fiscal Policy Incentive And Regional Real Economic Growth

This paper is about the study of relations of financial status deepening, fiscal policy incentive and regional real economic growth. Real economy is the basis of comprehensive national strength; the real economy is stronger, the basis of comprehensive national strength is solider. The economic society cannot develop healthily and continuously without the effective growth of real economy. Financial status deepening, fiscal policy incentive and regional real economic growth are closely related: real economy is the basis of financial statue deepening and fiscal policy incentive; the latter two factors have no solid economic base without sustained growth of the previous one. Financial status deepening and fiscal policy incentive are two engines for real economic growing; the real economy has no motivation without the two factors and their effective coordination. So it has both significant theoretical values and practical means to systematically study the relations of financial status deepening, fiscal policy incentive and real economic growth.1. The main contents of this study:(1)This paper constructs a theoretical analyzing structure of financial status deepening, fiscal policy incentive and real economic growth. This paper describes related concepts' definitions & connotations scientifically; analyzes the relations among financial scale, financial structure, financial efficiency, fiscal decentralization, fiscal expenditure, tax preference and real economic growth with mathematical models; decides the indexs for financial statue deepening, fiscal policy incentive and real economy.(2)this paper statistically analyzes the present situations and problems of financial statue deepening, fiscal policy incentive and real economic growth. Based on the Chinese time series data and provincial panel data, this paper firstly analyzes the present, characteristic and redional difference; then analyzes the present situations and problems in the process of finance supporting the real economic growth from the points of the aggregate and structure financing to real economy, fiscal decentralization and fiscal expenditure, the coordination of real economy and fictitious economy, credit and fiscal funds delivery, and so on.(3)This paper Empirically studies the influences of financial status deepening, fiscal policy incentive and their coordination on real economic growth. From the perspective of real economic growth scale, motivation and structure, this paper sets up spatial econometric model, static panel model and dynamic panel model to empirically study the influences of financial status deepening, fiscal incentives innovation on real economic growth.(4) Based on the conclusions of empirical studies, and the current realistic background of Chinese economic development, this paper at last designs a long term mechanism for financial status deepening, fiscal policy innovation and their coordination to promote the real economic growth, and puts forward some policy suggestions.2. The main conclusions of this study:(1)Since the reform and opening up, China's real economy has been growing faster with prominent periodical and regional characteristics. Since 1978, China's real economic amount has increased for nearly 157 times with 15.46% annual growth rate, reaching 55134.2 billion yuan in 2014. Real economic growth in China presented a new pattern of “inland economic rising”, the coastal areas had a higher rate before 2008, and the inland areas have exceeded the coastal areas since 2008. The spatial correlation of regional real economy grew in an inverted “U” shaped tendency and reached the peak 0.353 in 2008. The TFP of real economy had been grown in a “V” shaped tendency during 2008 and 2010. The values of Gini coefficient, Theil index and Logarithmic mean deviation, which measure the real economic regional differences, were great and fluctuated between 0.28 and 0.43. The rate of real economic amounts in the coastal, the inland and boarder districts is 3.18:1.49:1; the TFP of real economy in coastal areas is prominent higher than that of the inland or boarder districts.(2)Both financial status deepening and fiscal policy incentive can promote the real economic growth prominently, even though with a lot of problems in the practice. The results of spatial econometric model, static panel model and dynamic panel model of this paper show that the coefficients of financial status deepening and fiscal policy incentive are significant positive, meaning both financial status deepening and fiscal policy incentive can promote the real economic growth prominently; with the financial status deepening and fiscal policy incentive increasing, the real economic grows faster. However, some problems in four aspects are gradually exposed in the process of real economic growth: the severe regional development discordance and significant regional difference of real economy, the discordance of real economy and fictitious economy, the discordance of state-owned economy and private economy, the discordance of technological innovation and industrial structure optimization.(3)The poor coordination of financial status deepening and fiscal policy incentive restrict the real economic growth prominently. The results of spatial econometric model, static panel model and dynamic panel model of this paper reflect that the coefficients of cross term of financial status deepening and fiscal policy incentive are significant negative, it means the coordination of ficancial status deepening and fiscal policy incentive has negative effects to the scale, impetus and structure of real economic growth, so it restricts the real economic growth prominently. The main reason is that fiscal policy and financial policy coordinate poorly in the practice and the policy efficiency is low.(4)It is necessary to construct a long-term mechanism for financial status deepening and fiscal policy innovation and their coordination for promoting the real economic growth well and fast. The mechanisms include the ones for promotion of technological finance, coordination of plural finance, services of green finance, motivation of governmental investment, introduction of fiscal subsidies, reduction of tax & dues, preventing and solving the risks, sharing the resources & results and coordinating the state-owned and private enterprises.3. The important views of this study:(1)Real economy is the foundation of economical social development, and there is neither continuous healthy growth of national economy nor long-tern harmonious stability of the society without the effective growth of real economy. Real economy should be emphasized and developed first, and in this way can the society be progressed.(2)Financial status deepening and fiscal policy incentive are the premises of real economic development. It needs not only to promote the two elements, but also to strengthen their cooperation and coordination for developing the real economy.(3)Financial status deepening demands to fasten the financial marketization and the integration of finance & real economy. Financial status deepening should be based on the continuous development of real economy which should depend on the former one conversely, and none is dispensable.(4)Private enterprise is the main body of socialism market economic system and the core force promoting the real economic development. Financial status deepening and fiscal policy innovation should create a good environment for private economic development, and promote the collaborated development of state-owned economy & private economy.(5)To strengthen the technological innovation is the foundation of real economy's expansion and driving force conversion, and the key for upgrading the real economic performance and optimizing the industrial structure. Financial status deepening and fiscal policy innovation should collaborate to strength the sci-tech innovation power of real economy.4. The main recommendations of this study:(1)Increase the effective investments of infrastructure construction based on the real economic developing needs. Recreate the investing & financing modes to increase the effective investment of infrastructure construction according to local conditions, cannot blind to increase invalid investment or overlapping investment to creat GDP.(2)Perfect the regional industrial policies to accelerate the adjustment of real economic structure. Pay a great attention to reforming & upgrading the traditional industries and reshape its competitive advantage. Find out important realm to cultivate and develop the strategic new industries and high end manufacturing. Promote service industry fast development with multiple methods.(3)Increase the R&D inputs of enterprises to improve the scientific innovative capacities of real economy. Take multiple measures to improve the financial support for technological innovation, innovate the R&D funds' government mode and strengthen the management of funds' input and use.(4)Strengthen vocational education to improve human resource stock of real economy. Strengthen the cooperation between college and enterprise, and merge the theories & practice. Promulgate new employment policy for university graduate, and improve the intenal talent training plan of enterprise to fasten the talent supply reform of real enterprise.(5)Deepen opening up and regional cooperation to promote the internationalization of real economy. To accelerate the opening systematic reforms and institutional innovations, strengthen the opening base and its infrastructure constructions, and strengthen the international regional cooperation, to encourage the enterprises to “go out”and “be brought in”.