Study On The Impact Of People's Livelihood Fiscal Expenditure On The Income Gap Between Urban And Rural Residents

Since the reform and opening up,the way of income distribution has changed dramatically in our country.Compared with a single mode of income distribution in the past,the form of distribuion which is mainly based on labor income,with the form of a variety of modes of distribution coexisting,can promote the rapid economic development and the improvement of people's living standards.However,the other inconvenient fact is that the distribution and system also expand the urban-rural income gap to a certain extent,which is not conducive to social justice.The urban-rural income gap in China has maintained a high level,although in recent years gradually falling,but compared with other countries,this ratio of income gap is still very high.If we take into account the gap between urban and rural residents,such as education,health care,social security and other livelihood services,the actual income gap between urban and rural areas is more serious.Therefore if we can find out the root of the income gap between urban and rural areas in our country,reveals the cause of high income gap,it should be of great significance to reduce the income gap between urban and rural areas in China or to solve the problem of poverty in our country.Many scholars have studied the reasons for the continuous expansion of the income gap between urban and rural areas in China,and find the following points:the differences of human capital and urbanization,the dual economic structure,economic policy bias,fiscal decentralization,and so on.All of these are laid the foundation for our further excavate the essence of the income gap between urban and rural areas.In recent decades,our country has expanded the scale of fiscial expenditure on people's livelihood and introduced a lot of measures to safeguard people's livelihood.However,the large gap remains between urban-rural income,and still keep at a high level.This is worth our deep thinking,and we urgently need to find the deep reason that leads to the expansion of the income gap between urban and rural areas.As the people's livelihood problem gradually become the core issue of economic development and deepening reform in our country,the Communist Party and the government pay continuous attention to the people's livelihood areas,which take it as a important means to crack the plight of the economic and social development in our country.Education,medical and health care,social security and employment,income distribution and other activities are people's most basic livelihood activities,which is a prerequisite for the normal life of people in modern society.Therefore,increasing people's fiscal expenditure such as education,medical treatment and social security in rural areas can increase their income of rural residents and get rid of poverty,so as to narrow the income gap between urban and rural areas.The research ideas in this dissertation are as follows:firstly,by combing the existing research results and related basic theories,the relevant definitions of the livelihood of the people's fiscial expenditure,income distribution,mainly content,and the expenditure scope are defined;Secondly,this dissertation describes and analyzes the current situation and causes of the income gap between urban and rural residents in China,and examines the actual situation of the fiscial expenditure of China's people's livelihood from the perspective of scale and structure.Thirdly,through three empirical studies,the dissertation analyzes the impact of fiscal expenditure scale,structure and fiscal expenditure decentralization of people's livelihood on the income gap between urban and rural areas,and draws some conclusions.Finally,relevant policy recommendations.First chapter is the theory analysis part,first of all,the people's livelihood and the livelihood of the people,the concept of fiscal expenditure and income distribution is defined,this dissertation expounds the origin and development of people's livelihood thought,the main content and the level of people's livelihood fiscal expenditure,etc,Then it introduces the theoretical basis of adjusting the income gap of residents.Finally,from the three perspectives of education expenditure,medical and health expenditure,social security and employment expenditure,the mechanism of adjusting the income distribution gap of residents is explained.Chapter two analysis of the current situation of urban-rural income gap.Firstly,the general characteristics of income distribution gap in China are introduced.Then,the income level of urban and rural residents in China has carried on the comparative analysis,from inside the urban and rural residents,different development periods,different regions and between provinces,the four aspects such as the consumer perspective are analyzed;Finally,this dissertation discusses the reasons for the livelihood expenditure of the income gap between urban and rural residents in China.The third chapter is about the current situation of China's livelihood.First of all,the dissertation describes the scale and structure of people's livelihood.Secondly,the dissertation compares and analyzes the expenditure of central people's livelihood and local people's livelihood.Chapter four to chapter six empirical analysis.In the fourth chapter,the time series VAR method is used to empirically test the relationship between the fiscal expenditure scale and the urban-rural income gap between 1989 and 2015.Then USES the 2002-2015 panel data of 31 provinces in our country,using the dynamic panel model and spatial panel model empirical analyzes the fiscal expenditure scale of the people's livelihood of urban and rural residents' income gap in China.In chapter 5,we first use the time series VAR method to empirically test the relationship between the national fiscal expenditure structure and the urban-rural income gap between 1991 and 2015.Then USES the 2002-2015 panel data of 31 provinces in our country,using the dynamic panel model and spatial panel model,the empirical analysis our country people's livelihood fiscal expenditure structure of urban and rural residents' income gap in China.Chapter 6,the use of 2002-2015 panel data of 31 provinces in our country,using the dynamic panel model and threshold regression model,the empirical analysis our country people's livelihood fiscal expenditure decentralization and internal matters the separation of three kinds of spending on the impact of urban and rural residents income gap of our country.As an important carrier of benefiting people,the purpose of people's livelihood fiscal expenditure is to improve people's livelihood,improve the welfare level of the people,and better share the benefits brought by economic growth.At the same time,,as a kind of important means for government to adjust the income gap,the people's livelihood fiscal spending has obvious redistribution function,the size of its spending,the rationality of the structure will have important role on residents income distribution.By analyzing the impact of the scale of people's livelihood fiscal expenditure and structure on the income gap between urban and rural areas,and the impact of the decentralization of fiscal expenditure on the income gap between urban and rural areas,the following conclusions are drawn:Conclusions on the scale of people's livelihood fiscal expenditure and urban-rural income gap.First,in the empirical analysis,vector auto-regressive model fiscal expenditure scale of the people's livelihood are the important factors that affect the income gap between urban and rural areas,the people's livelihood fiscal expenditure scale effect on the income gap between urban and rural areas there is a certain lag effect and cumulative effect.Second,in the empirical analysis of the dynamic panel data model,the scale of China's livelihood fiscal expenditure plays an active role in narrowing the income gap between urban and rural areas.Third,regional terms,both in eastern,central and western areas,the people's livelihood fiscal expenditure scale can have the effect of narrowing the income gap,but in different areas,different size,the role of the people's livelihood financial scale from big to small in turn is the western,eastern and central.Fourth,in the process of spatial panel empirical analysis,we further found that the provincial urban-rural income gap exists between the spatial agglomeration features,and the positive spillover effect is obvious,and the people's livelihood fiscal spending activity will also have indirect spillover effects on the surrounding neighborhoods.Conclusions on the structure of people's livelihood fiscal expenditure and urban-rural income gap.First,from the national level,the relationship between China's livelihood expenditure structure and urban-rural income gap has long been balanced and stable.The increase of education expenditure and the proportion of medical and health expenditure will help to narrow the income gap between urban and rural areas in China.The increase in the proportion of social security and employment expenditure has not only failed to have a positive effect,but also widened the income gap between urban and rural areas.Second,from the provincial dynamic panel data model to empirical analysis found that education expenditure,social security and employment expenditure to narrow the income gap between urban and rural areas play a significant role in promoting,and the role of health care expenditure is not significant.Third,in the region,education expenditure in the three regions of the east,central and western regions can play a role in narrowing the income gap between urban and rural areas,but different regions play different roles.Among them,education expenditure is from big to small in the east,central and west.The difference in medical and health expenditure is large,the eastern region is positive,the coefficient in the central region is positive but not significant,and the coefficient in the western region is negative but not significant.Social security expenditure plays an important role in reducing income gap in the eastern region.It is not obvious that the central region plays a role in expanding the income gap.Fourthly,during the empirical analysis of the spatial panel,we further found that the urban-rural income gap between provinces has spatial clustering characteristics,and the positive spillover effect is obvious.The activities of the people's livelihood will also have an indirect spillover effect on the neighboring areas.Among them,education expenditure,social security and employment expenditure have negative spillover effects;The spillover of health spending is not obvious.The conclusions about the decentralization of people's livelihood and the income gap between urban and rural areas.First,in the empirical analysis of the dynamic panel data model,the decentralization of people's livelihood is beneficial to narrow the income gap.Among them,the role of education expenditure decentralization is not significant.The influence coefficient of decentralization of medical expenditure,social security and employment expenditure is significantly negative,and the effect of adjusting income gap is obvious.Second,from the point of control variables,economic development level is not significant narrowing the income gap between urban and rural areas,the increase of the proportion of state-owned enterprises to expand the income gap between urban and rural areas,transfer payments,urbanization level,the degree of opening to the outside world can play the role of narrowing the income gap between urban and rural areas.Third,according to the estimated results of the panel threshold model,the optimal range of the decentralization of people's livelihood is 0.281 to 0.568.The optimal range of education expenditure decentralization is 0.568 to 0.627;The optimal range of the separation of social security and employment expenditure is 0.112 to 0.348.There is no threshold effect on the decentralization of medical expenditure.Based on the above research conclusion,this dissertation gives four suggestions to narrow the income gap between urban and rural areas in China,which moderately expand the people's livelihood fiscial investment scale,optimiz the structure of people's livelihood fiscal expenditure,establis a sound fiscial system and improve the related mechanism four aspects.