| On the retrospection of the theoretical documents and the positive research which analyzed he relationship between fiscal decentralization and economic growth, this article analyze some related problems on fiscal decentralization and measurement index of fiscal decentralization and use the panel data(1994-2005)of the eastern, middle and western part of our country to examine the effect of the fiscal decentralization.The positive analysis use the framework which finished by Zhang and Zou(1998),Akai and Sakata(2000),Shen and Fu(2005).We use one sample to analyze the relationship between fiscal decentralization and economic growth in the eastern, middle and western part of our country, the period was from 1994 to 2005. Then, we join the region pseudo-variables to analyze the relations between fiscal decentralization and economic growth.With the data, we can find that the FD index of eastern and middle part turned to positive after the reformation of the system of tax distribution. While, the FD index of western part turned to obscure negative after the reformation of the system of tax distribution. The conclusion is that the reformation of the system of tax distribution promoted the economic development of every parts of our country.If we take region pseudo-variables into account ,we can find that after the reform, the FD index of the eastern part turned to noticeable positive from negative and the middle and western part were still negative.By the positive analysis, We can come to the conclusion that the FD was good to the economic growth of our country. At the same time, there still had regional discrepancy.This paper analyze the reasons which raised the regional discrepancy. We think that there were some reasons , such as system and environment factor, the co-ordination ability between higher authorities and lower authorities, the independence of finance. But we think the difference of fiscal expenditure composition should be the chief reason.We carry out a positive analysis of the relationship between the composition of fiscal expenditure and economic growth. The related data were from some provinces of eastern middle and western part of our country and the sample period was from 1994 to 2005. The conclusion was that the relationship between the expenditure of science education culture and sanitation and economic development was positive, the expenditure of economic construction and administration expenditure and other expenditure was negative with economic growth. The expenditure of science education culture and sanitation had the highest noticeable positive relationship, the expenditure of economic construction had the highest noticeable positive relationship.We analyzed and compared the composition of fiscal expenditure with six provinces'data in eastern, middle and western districts of our country, the outcome is the same to our positive analysis conclusion. The fiscal expenditure composition of the eastern part was better than the middle and western parts. Perhaps,this the reason why the effect of fiscal decentralization in east part was better than that in the middle and western parts.At last, this article put forward some suggestions to change the of regional disparity effect of fiscal decentralization. For example, We should confirm the central and local governments'responsibility, ensure the financial resources are .identical to their affairs. Change and the fiscal expenditure composition of local government, reform the financial transfer payment to make the basic public services is equal to each other. The central government should regulate the pattern of transfer payment to make the basic public services are equal to each other. At the same time, the central government should balance the transfer payment, increase the transfer payment in the middle and western districts, reduce the investment of basic economic development, make use of the local government and private capital, increase the investment of science and education expenditure. |
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