The Research On Public Demand Preference Oriented For Local Governance Reform

As one of the local public goods supplier,local government satisfy the public demand preference by rational allocation of public resources in pursuing good governance.The allocation of public resources among different expenditure items forms a specific public expenditure structure.The adjustment of public expenditure structure reflects the change of local government governance behavior induced by public demand preference.The essence of local governance is to realize bilateral matching between public goods supply and citizens ' demand preference by adjusting the scale and the way of local public expenditure projects,to achieve the equilibrium of public goods.The difference of local public expenditure structure in different periods reflects different governance objective and style,which shows the change of local governance level.Since the reform and opening up,the evolution of local public expenditure structure has undergone profound changes in the context of economic system transformation and government reform.It shows that the proportion of people's livelihood expenditure has increased,but the proportion of productive expenditure has decreased.There are growing signs of local government response to local residents' preference.How to recognize the government behavior in the evolution of local public expenditure structure,which is the result of local governments making the initiative to adjust it in face of market economy,or is the result of the changes in public demand preferences and the enhancement of public expressive power?As the economy enters a "new normal",what local government face is the contradiction between the people's ever-growing needs for a better public services and inadequate public goods provision.How to enhance local governance efficiency,provide more high-quality public services in response to public demand,is an urgent problem to be resolved at present in theory and practice.Based on the tiered governance system in the transitional period,this dissertation reveals the basic motive force,approach and strategy of local government to respond to the public demand preference,and expounds the roles and problems of local government changing governance method to promote bilateral matching of public goods supply and demand,and also puts forward the idea to " good governance" for local government.This dissertation has eight chapters and it is divided into four parts.The first part including chapter 1 and chapter 2,analyzes the concept and content of public demand preference and local governance on the basis of literature review.Based on the formation of local public expenditure structure and its relationship with local governance,this thesis introduces a theoretical framework of responsive governance with public expenditure.The second part for chapter 3,analyzes the evolution trend of the local public expenditure structure based on the macro fiscal expenditure data since the reform and opening up,estimates the ideal public expenditure demand function by using the median voter model and 30 provincial panel data from 1999 to 2015,also calculates matching index of public expenditure supply and demand preference,which reveals the characteristics of local governance reform.The third part corresponding to the fourth,fifth,and sixth chapters,focuses on the internal mechanism of the influence of public demand preference on local government governance reform.Firstly,using the data of Chinese General Social Survey(CGSS2003-2015),chapter 4 makes a descriptive and explanatory analysis on the configuration of local public demand preferences from Rostovian take-off model,Maslow's Need-hierarchy theory and Life Cycle theory,analyzes the internal logic of the public express their demand preferences,the efficiency of expression channel and its institutional defects.In the chapter 5,the local government behavior regulated by central government pursuit for ruling legitimacy in the tiered governance system is expounded and local public expenditure structure strategy adjustment behavior is also analyzed under the dual pressure of the superior government and local people.Based on 30 provincial panel data from 1999 to 2016,it empirically tests the influence of public demand preference expression on the compostion of local public expenditure by using seemingly unrelated regression model,confirms that the endogenous relationship between the adjustment of local governance objective and public demand preference.According to the new problems encountered in the strategic adjustment of local government public expenditure structure,the sixth chapter analyzes the behavior orientation and main practices in selecting governance method,empirically investigates the effect of the choice of local governance method on the matching degree of public expenditure supply and demand preference.The fourth part consisting of the seventh and eighth chapters,according to the existing problems in the public demand preference expression mechanism and governance methods,the seventh chapter puts forward the basic approaches of "good governance"for local government by the construction of matching mechanism of public expenditure supply and demand preference.The last chapter summarize the research,and point out the research contents in the future.Some conclusions acquired through research are as follows.(1)To enhance the response to citizens 'demand preference has become a new trend in local governance reform.The time series analysis of the composition of local public finance showed that local financial system has been transiting from the original production and construction finance to the livelihood-serving-oriented finance.The pattern of public expenditure division among different levels of government has basically formed,and the public expenditure structure is gradually adapted to the environmental characteristics of regional economic development.The public welfare has been improved gradually,and it was the result of local governments which conformed to the need of the modern market economy system reform,and responded to the change of people's demand preferences.There were different results in different regions.(2)The adjustment of local governance objective is closely related to the change of public demand preference and the improvement of public demand expression.With the improvement of people's income level,the market failure brought by economic transformation and a rapidly ageing population,citizens,demand preference is gradually shifting from efficiency to fairness.The increasing voice from citizens stimulates the central government to strengthen the regulation of local government behaviors for governing legitimacy.Under the dual pressure,the local government adjusts the public expenditure structure and responds to the public demand preference,which indicates that the change of the local public expenditure structure is not dominated by government,but the influence of the public demand factor increases gradually.(3)The choice of governance methods has become an important means to promote the matching degree of local public goods supply and demand preference.Under the background of financial management system reform,the high heterogeneity of public demand preference growth,lack of motivation to express preference,the risk of falling into the middle income trap by populism ideology,the tyranny of the majority caused by majority voting rule,the strategic adjustment of local public expenditure structure is more and more difficult to meet the growing public demand.Changing the traditional extensive public goods provision type,exploring new style of public goods provision and improving the efficiency of public expenditure is an inevitable choice for local governance in the new era.(4)Perfecting the matching mechanism of public goods supply and demand preference is an effective approach to the realization of better governance for local government.The key to the objective of local governance is to coordinate the economic development and improving people's well-being,to realize the organic unification of public demand fair preference and efficiency preference.The motivation of the public to express their demand preferences is aroused by establishing unimpeded public demand preference expression channels and a rational division in different expression ways.Based on the public financial expenditure information disclosure deeply,it should establish a institutional interconnections between costs and benefits for public goods,correctly guide public expectations,achieve social consensus through consultative governance.It needs through the establishment of diversified supply system for public goods,strengthens the government's internal reform,takes advantages of social forces to meet the heterogeneous demand preferences and improve the synergy effect of public governance.The innovation of this dissertation in both theoretical elaboration,and has plenty of empirical research.(1)It takes public expenditure as the main line of analyzing and revealing local government governance behavior,the purpose of which is acquaintance of the local public goods supply level and evaluate the performance of local governance,all of which would contribute to broaden the understanding of the connotation of government governance from economics perspective.(2)The internal mechanism of the changes in the structure of local public expenditure is analyzed from the three aspects:the public,the central government and the local govemment.On the basis of domestic research on the influence of fiscal decentralization on the matching degree between supply and demand preferences of local public goods,the main objective of this study is to examine the root-cause of local public expenditure structure change from demand-side,which reveals the internal connections between public demand preference and local governance,and investigates a unique public choice mode of China's local governments,all of which enrich the public choice theory.(3)This dissertation further explains the new trend and the root causes of local government spending behavior.It empirically tests the conflicting influence of the local public demand preference expression on the local public expenditure structure,examines the different impact of local governance methods on the matching degree of local public expenditure supply and demand preference,which shows that the livelihood expenditure tendency is unstable under the flawed local public resource allocation mechanism,and it is difficult to fully satisfy the public's efficiency preference and fair preference.(4)In the light of inherent defects in public demand preference expression and local governance mechanism,this dissertation proposes to perfect the matching mechanism between public expenditure supply and demand preference,improve the fairness and balance of public demand preference expression mechanism,and innovate the style of local governance,all of which have important realistic significance for solving the public choice dilemma and practicing good governance.