A Study On Fiscal Transfer Payment System Based On New Urbanization Quality

The urbanization in China has stepped into the accelerated development since the end of 1970 s.However,under the traditional extensive development pattern,a series of problems are getting more severe along with the economic prosperity of cities and towns,which include unbalanced regional economic development,absent social public service,and aggravated ecological environmental pollution.For these reasons,the issue about enhancing urbanization quality is receiving more attention from all sectors of society.Despite that,government is the planner and impeller of Chinese urbanization,under the economic decentralization system,local government lacks tax autonomy while bearing plentiful responsibilities of routine power expenditures,so the gap of financial resources generated accordingly influences the full exertion of local governmental functions.Financial transfer payment is the significant approach for compensating defects of decentralization system,through which the central government can reinforce macroeconomic management,balance regional difference of financial resources,optimize resource allocation,stimulate and guide local governmental behaviors to follow people's interests and realize equalization of public service,so as to promote the quality of urbanization.Therefore,financial transfer payment greatly influences all aspects of urbanization development.Based on such thinking,this paper implements empirical research by starting with relevant theories and the details are as follows:Firstly,from the perspective of theories related to urbanization and transfer payment,it analyzes the factors influencing urbanization quality and extracts the three critical dimensions for measuring urbanization quality,which are economy,social public service and ecological environment.After that,it analyzes the relations among Chinese transfer payment,local governmental expenditure behavior and urbanization quality under the decentralization system,and constructs the influential mechanism of transfer payment on urbanization quality.The analysis shows that,under Chinese decentralization system,transfer payment influences the promotion of urbanization quality in three approaches through local governmental fiscal expenditure,which are economic quality development,social public service progress and ecological environmental optimization.Meanwhile,instead of being isolated,these three are interrelated and mutually influenced.Secondly,by means of the empirical test of Sichuan county level panel data during 2005~2014,this paper analyzes the influence of financial transfer payment on county economic quality growth.Through researching the influence of transfer payment and population urbanization rate during urbanization on country per capita GDP as well as non-agricultural industries,it is found that,the enhancement of inter-governmental financial transfer payment and population urbanization not only facilitates economic growth in county,but also improves the proportion of non-agricultural industries in county and optimize industrial structure.In addition,its influential effects are obviously distinct in different regions.Thirdly,according to the Sichuan county level panel data during 2005~2014,this paper empirically verifies the influence of financial transfer payment during urbanization on supply of social public service so as to distinguish the “livelihood”,“economic” and “general” public service.Besides,the research on influential effects of transfer payment and population urbanization on “economic” and “general” public service indicates that,both general and special transfer payment prominently promote the supply of “economic” and “general” public service,while their influence on supply of “livelihood” public service lacks elasticity;population urbanization rate obviously promotes the supply of “livelihood” public service,but it almost has no influence on the supply of “economic” public service.Moreover,the influential effects are obviously distinct in different regions.Fourthly,this paper empirically tests the influence of transfer payment during urbanization on ecological environment.The empirical verification of Sichuan county level panel data during 2005~2014 discovers that,general transfer payment has no obvious influence on county environmental protection investment;although special payment prominently facilitates the increase of county environmental protection investment,its influential effect mainly originates from hill regions.The enhancement of population urbanization rate obviously drives county environmental protection investment,but there are great differences in different regions.Fifthly,through Sichuan county level panel data during 2005~2014,this paper systematically tests the interactive influential effects of three dimensions of economic growth,supply of social public service and ecological environmental protection during urbanization;it also verifies influence of transfer payment on three dimensions in the whole system.The empirical analysis shows that,there is certain interactive influential effect among the relations of economic growth,supply of social public service and ecological environmental protection,where financial transfer payment promotes economic growth,supply of social public service and ecological environmental protection;population urbanization rate only facilitates ecological environmental protection to some extent without prominent influence on economic growth or social public service.In the whole system,the interactive influential effects among different regions as well as three dimensions,and the influence of transfer payment on three dimensions is also very distinctive.Sixthly,based on the results of empirical research,this paper proposes the policy suggestions for reforming and perfecting existing Chinese financial transfer payment system from the viewpoints of new-type urbanization quality,including deepening of financial decentralization,standardization of general transfer payment,perfection of special transfer payment,and incentive as well as assessment of transfer payment.