The Research Of The Fiscal Transfer And Regional Economical Inequality

With the further optimization and development of socialist market economy, all the provinces and regions in China are received different levels of economic growth. As rapid the whole country's economic develops, regional economic disparities are also widening, which raises the concern of the whole society. So it is a necessary requirement to pursue an coordinated development of regional economy in the new situation of economic construction in China. Government is committed to the gap Narrowing the Regional Economic Development by a long series of strategic policy such as developing the west area and building a harmonious society. Actually, the effect is not so remarkable, while the gap of economic development is even still widening.There are many factors affect economic growth by many factors. When comes to the macro-control by direct administration, state financial expenditure is an obviously solution. Financial expenditure, generally resulting from finance transfer payments of the central government, always has a mighty effect on investment and economic growth of popedom. It is convinced that financial revenue presents revenue Matthew Offect, that is to say, strong-developed economy means high fiscal revenue, while less-developping economy means low fiscal revenue. So an efficient allocation of financial transfer payment is a positive solution to change the status quo of widening regional economic differences, after all a markedly effective way. This article based on the perspective of fiscal transfers, analyzes the mechanism between transfer payments and economic development since the Chinese tax system reform, explores how the financial transfer from the Chinese administration and U.S. administration effect regional economic growth gap by combining statistical analysis and case analysis approach, and further research all the factors that resulting in the implementation of transfer payments at implementation stage.This paper consists of five chapters.Chapter I: Introduction.The introduction of this paper elaborates on the research background, meaning of choosing this subject, research summary relatively, ways of researching and the innovation of the paper.Chapter II: Lopsided analysis in regional development. from the perspective of the main statistical analysis, seperately explained the regional economic differences in U.S. and Chinese.Chapter III : Transfer payments and the basic analysis of regional economic disparities. Introduces the concept of financial transfer payment causes and mechanisms for reducing regional economic disparities.Chapter IV : Transfer payments and economic growth analysis. Analyse transfer payments acts to the impact on economic growth gap by empirical analysis. Chapter V : Financial transfer payment analysis of factors. Analyse various factors of the financial transfer payment effects by mainly regression analysis.At the end, it's conclusion. Through the article, it is convinced that we believe that compare to U.S., our transfer payments do not efficiently help reducing regional economic disparities; right now the methods of factors that allocate the quota of fiscal transfers in China, although taken into account the political, economic, public services and natural factors, the direction of some factors are not proper, and should be improved.