Influence Of The Financial Decentralization System On Local Economical Growth

The financial decentralization system relates the central and the local economy growth. At present, massive theoretical literature focuses on researching the problems of the financial decentralization system which has influenced on economical growth of the central authorities. However, the influence brought by the financial decentralization for the growth of the local authority economy that is lower level can't be seen so much in the historical document research. This article focuses on its impact on local economic growth, to Yan'an as a special case of local governments to carry out empirical research.On the basis of fiscal decentralization theory and previous research on this issue , author recalls the process of fiscal decentralization in China from the founding of the PRC to now. Discussed the main way and means by which financial decentralization affects local economy grew; Introduced overall situation of Revolution Holy Land - - yan'an economic development in 30 year specially; introduce the data which yan'an economic grows after the reform and open policy, established the regression model initially. The yan'an economic growth situation does contrasts; and using the chart, contrasts the situation of yan'an economic growth around the tax distribution system reform in1994.Finally come to the conclusion that the finance decentralization promotes the economical growth of the yan'an .