Font Size: a A A

Study Of The Nonlinear Effects Of Fiscal Decentralization On Local Economic Growth And Local Public Welfare

Posted on:2019-07-25Degree:DoctorType:Dissertation
Country:ChinaCandidate:L L LiuFull Text:PDF
GTID:1319330542998436Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Under the system of fiscal decentralization in China,local governments should pay attention to regional economic growth on the one hand,and on the other hand,they should give consideration to improving the livelihood of the local people.Therefore,it is very important to investigate the role of China's fiscal decentralization in regional economic development and the improvement of the people's livelihood,and to reveal the effects of fiscal decentralization on local economic growth and local public welfare.The research on fiscal decentralization has aroused widespread concern in the academia,and the research results are very rich.On the one hand,the existing research on the impact of fiscal decentralization on local economic growth mostly focus on empirical research,theoretical model research is relatively few.The only existing theoretical research considers the structure characteristics of the government itself,viz.,that public expenditure is divided into the central and local public expenditures,while these studies still consider revenue as a whole,viz.,that revenue is not dividede into central and local revenues.On the other hand,there are some researches on the impact of fiscal decentralization on local public welfare based on nonlinear considerations,but all of these studies focus on empirical research,and lack of theoretical model research.At the same time,the existing research ignores the heterogeneous responses of nonlinear effects of fiscal decentralization on local public welfare across sectors and economic strata.Thus,the purpose of this study is to analyze the nonlinear effects of fiscal decentralization on local economic growth and local public welfare from two perspectives of theory and demonstration.Hopefully,the perspective and conclusion of economic growth effect and welfare effect of fiscal decentralization in this paper will be particularly illuminating for academic research.The main contributions of this study are as follows:First,the theoretical analysis of the economic growth effect and the welfare effect of fiscal decentralization is developed.From the perspective of the theory of endogenous economic growth,the study no longer considers fiscal revenue and expenditure as a whole basing on the correlative results,viz.,that fiscal revenue and expenditure is divided into the central and local fiscal revenues and expenditures,and constructs an endogenous economic growth theory model which can characterized the relations among fiscal decentralization,local public welfare and local economic growth by the Hamiltonian function.By the model solution,it is found that the fiscal decentralization and local economic growth have an inverted U-shaped relationship.And by the numerical simulation,it is found that fiscal decentralization and local public welfare have an inverted U-shaped relationship.Second,the empirical research of the nonlinear effect of China's fiscal decentralization on local economic growth is developed.To examine the adaptability of the theoretical results in China's economy,the study takes the provincial panel data from 2004 to 2015 as an example to carry out an empirical test in China.The results show that China's fiscal decentralization and local economic growth show a significant inverted U relationship;these results are robust from the three aspects of empirical method,empirical sample and fiscal decentralization indicator.According to the empirical sample data,it is found that the fiscal decentralization has exceeded the inflection point values,which shows that the fiscal decentralization in China has played a restraining effect on the local economic growth at the present stage.In addition,fiscal decentralization has imposed the impact on local economic growth and has an impact on the differential degree of regional economic development.Therefore,this study also analyzes the effect of fiscal decentralization on the imbalance of regional economic development.The results show that China's fiscal decentralization and the imbalance of regional economic development have a U-shaped relationship.According to the empirical sample data,it is found that the fiscal decentralization has exceeded the inflection point values,which shows that the fiscal decentralization in China has intensified the imbalance of regional economic development at the present stage.Third,the empirical research of the nonlinear effect of China's fiscal decentralization on local public welfare is developed.To examine the adaptability of the theoretical results in China's economy,the study explores this question empirically with a panel set over the 2004-2015 periods in China.Results show that fiscal decentralization has an inverse U-shaped relationship with public transportation infrastructure service,but has no inverse U-shaped relationship with public health service and public basic education service;these results are robust by using different indicators for decentralization.In addition,the panel quantile regression method is used to explore the heterogeneity of the nonlinear effects of fiscal decentralization on local public transport infrastructure service.Results show that fiscal decentralization effect has obvious regional heterogeneity:The change of the level of fiscal decentralization only plays a significant role in the areas with the development level of medium and low public transport infrastructure service,and does not play a significant role in the relatively sound areas of public transport infrastructure development.Based on above empirical conclusions,some policy suggestions for solving problems are proposed:rationalization and oderation of decentralization,rationalization of financial resources allocation,diversification of performance assessment standards,and balance of regional development.
Keywords/Search Tags:endogenous growth, fiscal decentralization, local economic growth, local public welfare, system GMM, quantile regression
PDF Full Text Request
Related items