The Comparative Research Of Local Financial System Between China And U.S.

The research on China's primary financial system has been a hot issue for long. Typically, since the Tax Distribution System Reform in 1994, most counties and towns in China have been facing the difficulties in primary fiscal affairs, in which debt and deficits are commonly seen. Debates on the cause of dilemma in primary financial system are the focus of earlier Chinese economists' arguments.Among the earlier research on the cause of dilemma in primary financial system, most economists paid attention to a certain reason, such as excessive levels, asymmetries in administrative and financial powers, staff tedium, etc. However, few focus on the whole primary financial system. Meanwhile, there barely exists the comparative research between China and developed countries, and that's innovation of this dissertation.As one of the most economically developed countries, the US also has the steadiest financial system and the highest administrative efficiency. Therefore, the design and operation of the primary financial system of the US is of supreme importance to the primary financial system reform that is undergoing in China. Considering the development difference between China and the US, the dissertation chose the most economically developed areas of the two countries for the comparative research, which are separately Wujing town in Shanghai and Manlius town in New York.The dissertation includes five parts as below:The first part defines the relative conceptions, defining and scoping the base units. The functions and theory origins of the primary finance are also preliminarily discussed.The second part traces and analyzes the theory development of the primary finance. The earliest primary financial theory can be traced back to the famous English economist of 18th century, Adam Smith, who was the first to propose the public finance. Adam Smith advocated free market economic model and in his 1776 publication named "an inquiry into the nature and causes of the wealth of nations". Since Stigler discussed the necessity of local governments in 1975, the theories on the primary financial system have gradually come into the research field of the public financial economists. While the research process started later in China, most of which concerned the difficulties existing in the counties'finances after 1994's Tax Distribution Reform.The third part consists of the comparative research between the financial systems in China and the US. There exist quite a lot of differences in the two countries'political organization forms and government level division, which attributes to the differences in their financial systems. By investigating the financial system reform of China since the reform and opening up to the world, the deeply understanding of current financial system of China can be obtained. The comparison and description of transfer payment system of China and the US are also presented in this part.The forth part is the comparative research between Wujing town and Manlius town. The two towns locate in the economically developed areas of the two countries, with abundant finance and high standard living quality. Through the comparative analysis between the finance budget and accounts reports in 2009 of the two towns, the differences in income sources, expenditure directions and performance evaluation of them are found.The fifth part is the end of the dissertation, whose attempt is to put forward the relative resolution and strategies that help the base units of China out of the dilemma. Due to different causes of the difficulties confronted by the base units and the primary finance, the resolutions are proposed in four ways. Eventually, the construction of a reasonable primary financial system is ongoing.