The Proactive Fiscal Policy On Economic Development In The Western Region

The implementation of the western development strategy and achieving the coordinative development between regional economies is one of the significant projects that Chinese government facing, in which fiscal policies, being an important macro-regulatory measure, will play a positive role. Although since 1998, active fiscal policies in China have an inclination for the western region to stimulate the economic development in this region and have gained achievements, there is still a fair gap between results and the expectation, and the mechanism of endogenetic growth of western region was effectively established. It embodied that the ways which active fiscal policies effect the development of western region has been clearly understand.This thesis begins with the discussion of the essential meanings of regional economics and the inner relationship between it and the government supports, builds a mathematic model of functional mechanism of fiscal policies in the development of regional economy on the basis of the relative theories of the macro-economics and finance; and analyze the inner basis of specific policies and measures on the theory of endogenetic growth and the theory of structuralistic growth; then the thesis analyzes the actuality and potential of the development of the western region in detail and systematically studies the factors of its slow economy, and tries to test the coefficient of each relative factor. On the basis of the above, the author, using the experience by which the slow economy was developed both in the domestic and overseas, discusses how to formulate an effective fiscal policy in the western area. At the last part, the Shaanxi province is taken as an example to support that the active fiscal policy exactly brought important effects in recent years and establish a stable basis for its persisting development, meanwhile, it has also been proved that the point the future work is on the micro aspects, for example, forming the competitive advantages of the western enterprises.