Study On Fiscal Policies Of Promoting The West District's Development In China

The strategic decision of promoting the West District's development is basic on "consideration for two general situations." It is put forward to shorten the distance between the East and the West District, and realize the sustained development of the whole national economy and society, then it is a governmental behavior for itself. But the West District's development of today is carried out in market economy of socialism, different with planned economy. So it must be completed by market economy. In this way, the reasonable coordination between government and market will run through the whole process of the West District's development. In different period, government and market have different tasks. During system reform and weak market situation, especially at the beginning period of promoting the West District's development, government is most important, and fiscal policies must play a significant role.In china, fiscal theorists launch deeply discuss to take advantage of fiscal policies of promoting the West District's development. Some of them raise many suggestions and measures. But these discusses are mostly strategic studies which are not sure of persuasiveness, in another word, they don't analyze theory bases. In this paper, the anther try to introduce and analyze them, then affirm fully the function of fiscal policies to promote the West District's development. These two theories are bases of the paper. From them, we study and explore fiscal policies that agree with nowadays situation. All of these can offer basis foundation for further discuss. Then, what can we draw from foreign governments using fiscal policies of promoting undeveloped districts? What is the guiding ideology that we adopt? This dissertation is trying to clarify these above questions. So we can put forward some useful suggestions for the development of the West District.This dissertation is divided into four parts.The first part summaries the present conditions of the development of the West Distinct in china and analyze the reasons. It begins from the introduction of the West District in china, and sets forth the status quo of the development of it in concrete number, that is there is extreme unbalance between the East and West District. Namely, the present conditions of the West District have bad influence on national economy in the macroscopic side and the microcosmic side. So it is most important to stress on the development of the West District. Next, It analyses the reasons mainly in fiscal policies angle. From this, we can sum up that promoting the development of the West District to agree with the national growth is a strategic decision of "two general situations", Secretary General Jiang also sets up "strategic of development of the West District ". The dissertation designs initially the strategic objective to the development of the West District in china, namely, it is divided into three steps: 2000-2010 year, 2011-2030 year. 2031-2050 year.The second part is the analysis about the theories of fiscal policy of promoting west district's development in china. Firstly. It introduces P.·Romer's endogenous growth theory, mainly including three patterns: knowledge-overflow pattern, manpower-capital pattern, Barron pattern. It points out in different angles that a series of endogenous elements decides a country's long growth. These endogenous elements are sensitive to fiscal policies .So fiscal policies are the promotion of economy's growth. From it, we know that using fiscal policies promote economy must catch with three endogenous elements: enlarge manpower capital investment, basic facilities investment, and public capital investment. Secondly, it introduces M·Perter's economy development's stages theory, that believe this process should be divided into four stages. It tells us that carrying out fiscal policies to promote the West District must be step by step. This part emphasizes these two theories and tries to give out suitable fiscal policies to promote the West District.The third part summarizes the experie...