Study Of Fiscal Policy On Promoting The Adjustment Of Chinese Economic Structure

Adjustment of economic structure is an important theoretical proposition, as well as a practical issue with great historical and practical significance.From the view of world’s development, adjustment and improvement of economic structure is a key feature and impetus of economic development. History demonstrates that change of economic structure is the essence of modern economic growth. This successful economic structure change is the key reason why developed countries hold the lead. On the contrary, some countries failed to overcome the structural contradiction in time, falling into the "mid-income trap".Seeing from global trend of economic development, adjustment and improvement of economic structure has become the focus of policy makers and the public. The latest global financial crisis reveals the long-lasting structural contradiction of global economy. At present, world economic pattern is changing dramatically, optimiztion of economic structure has become the main theme of policy all over the world.China has ended a long-lasting fast-growing time and been in the shift of development stage, in which the structural contradiction is more critical. For now and in the next decade, China will be in a shifting period of economic growth rate, a painful period of structural adjustment, a period of digesting the past stimulating policy, all come in the same time. Macro policies are in a dilemma of adjusting structure and maintaining high growth. However, the adjustment of economic structure could not been avoided, which should be pushed forward substantively.Combining theory and practice is the starting point and foothold of this thesis. Making fiscal policy as the main line, this thesis concentrates on the study of how to adjust economic structure, how to play a proper role of fiscal policy and other significant prepositions.The followings are about the contents of each chapter.Chapter1, Introduction. In this chapter, the background and significance of the research is introduced. Related concepts-economic growth, economic development, economic structure, public goods, fiscal policy are defined. The method, content, structure, probable innovation and shortage of the research are put forward.Chapter2, Literature Review. In this chapter, first of all, existing theoretical researches on economic growth are summarized. Theories from classical school and neo-classical school are briefly reviewed. Representative modern growth theories are analyzed. Second, theoretical researches on economic structure and economic development are summarized. Theories from schools of development economics are analyzed. The importance of economic structure issue in development economics is pointed out. Third, related researches on "mid-income trap" are generalized and summarized. Fourth, representative researches on China’s adjustment of economic structure and relevant fiscal policies are systematically summarized.Chapter3is about the theoretical question of advancing adjustment of economic structure by fiscal policy. First, the author analyzes the role of market and government in economic structure adjustment, and points out that it is inevitable for the government to take part in the adjustment of economic structure, which has been proved by policy practices in different countries. Second, thought of fiscal policies in western countries and basic factors of fiscal policy are summarized. The Endogenous Growth Theory and New Structural Economics are analyzed from the perspective of fiscal policy, trying to lay a theoretical foundation for the adjustment of economic structure promoting by fiscal policy. Finally, the mechanism of fiscal instruments is analyzed, including policies of fiscal system, budget policies, tax policies, public financing policies, public debt policies, public expenditure policies, assets depreciation policies and so on.Chapter4is about the problem of economic structure in China and the situation it faces. The author believes that problems of economic structure in China manifest as three unreasonable and uncoordinated structures--demand structure, industrial structure and regional structure of urban-rural areas and all regions. Unreasonable demand structure reflects as the imbalance of investment and consumption demand, weak stability and low level of external demand. Imbalance of industrial structure reflects as the uncoordinated development of three industries, weak innovation ability and big pressure of environment and natural resources. The gap of development between urban and rural area is still wide. The author also points out in this chapter that international economic pattern has deeply changed and been in the process of speeding up its adjustment. China is in the shifting phase of development, facing both challenge and opportunity. Adjustment of Chinese economic structure is in a fresh new situation.Chapter5is about the defect of fiscal policies in China on promoting adjustment of economic structure. First, overall strategic planning is insufficient. Second, the division of expenditure duty and transfer payment system is imperfect. Third, the conformation of tax system is imperfect, unable to exert its function or has the problem of dislocation. Fourth, public financing system is imperfect, and risks from debts borrowed by local governments are accumulating.Chapter6is about the practice and enlightenment of fiscal policies on promoting adjustment of economic structure in other countries. The thesis summarizes these practices from the perspective of strategic planning, usage of policy instrument and support of enterprises. These practices mainly contain fiscal and tax policies to implement reindustrialization strategy, promote emerging industries and support small-medium enterprises in developed countries, relevant policies to promote emerging industries in some emerging economies.Chapter7is about the framework of fiscal policy system on promoting the adjustment of economic structure. The thesis points out the direction of economic structure adjustment, the goal, principal and emphasis of fiscal policy. The usage of main fiscal policies and the thought of reform on relevant system and policies are analyzed.Chapter8is about the thought of fiscal policy on improving demand structure. The author points out in this chapter that policy orientation aiming at improving demand structure should be to effectively increase consumption demand, optimize investment demand, maintain and improve external demand. The author argues that fiscal policy should combine the improvement of ability and elimination of obstacles in perspective of consumption, combine incentive and restriction in perspective of investment, maintain the traditional advantage and forge the new advantage in perspective of external demand.Chapter9is about the thought of fiscal policy on promoting the adjustment of industrial structure. The author points out in this chapter that policy orientation aiming at improving industrial structure should be to optimize industrial distribution, transform and improve traditional industries, accelerate the development of strategic emerging industries and modern service industries, enliven micro level of enterprises to improve the performance. The author also argues that fiscal policy should be closely combined with industrial, investment and financial policy, treating differently, promoting as a whole and implementing exactly.Chapter10is about the thought of fiscal policy on promoting coordinated development of urban-rural areas and all regions. The author put forward the policy orientation that implementing the strategy of national function region, building regional economic zone, accelerating the development of marine economy, pushing forward the new urbanization, advancing the development of rural area. Fiscal policy should exert force as a whole, increase the degree of support, change the way of support and improve the effect of support.On the whole, this thesis has the following innovation:The first is the innovation of research approach. The key of adjustment of economic structure is to improve growth efficiency. Most existing researches focus on allocation efficiency. This thesis focuses on both allocation efficiency on macro level and technical efficiency on micro level, trying to build a multi-level analysis system which covers national economy, industry, region, enterprises and laborers.The second is the innovation of viewpoint. This thesis "sees public finance from the outside". On one hand, combining the traits of fiscal instruments, this thesis gives an overall analysis of the framework of fiscal policy, focusing on improving demand structure, optimizing and upgrading industrial structure and coordinated development between urban-rural areas and all regions. On the other hand, combining fiscal policy with the operation of state-owned capital, mixed ownership and policy finance, this thesis puts forward a serial of innovative policy proposals. Examples are as follows:the liquidation of partial state-owned capital in the process of economic structure adjustment; the advance of PPP mode together with mixed ownership; the issue of economic structure adjustment state bonds or financial bonds; the operation by specialized financial institutions; the establishment of special equity investment fund on national and provincial level. Besides, this thesis analyzes the collocation of using fiscal policy and other policies, trying to put up innovative proposal in some fields.