An Analysis On Fiscal Decentralization And Local Administrative Monopoly

This master paper "An Analysis on Fiscal Decentralization and Local Administrative Monopoly", aims at the important research project of philosophy social science research of Ministry of Education 2006 year "counter-administrative monopoly and promoting competition policy research in the switch economy"(the project number: 06JZD0015).The American famous economist Mancur Oison claims that the key factor for one country's economy and society rapid development is the free movement of production factors and the formation of integrated magnitude market.The integration degree of China domestic market,however,is not satisfying yet.It is not rare that local governments obviously or unclearly lock regional market and constrain competition through administrative measures.This kind of regional administrative monopoly causes redundant project of professions which have big price usury and income increasing which the government by chance in our country, causing the area border division of labor and the trade superiority far not being used;causing the regional industrial structure to hasten with, the non-scale economy, competing excessively and so on, and having caused the losses of huge cost efficiency and the wasting of resources, having hindered the establishment of domestic unification big market seriously.Why do we have Local Administrative Monopoly in the course of economic reshuffling? In the economical switch process, following the decentralization from central committee to the place, the local authority in our country is becoming the main body with an independent political economic interest gradually, also has been getting more and more benefit requests which are independent from central authority, whose behavior way and the characteristics conforming to theory hypothesis of economic man. Along with the enhancement of local authorities' economic potentiality and the strength of central negotiations, the endless bargaining back and forth and financial gambling, which are regarding the financial benefit's distribution,between the local authorities and the central authority pass through the entire reform process. Although the taxation organizational reform, taking the tax distribution system as the core,has basically been clear about the division of property rightsbetween central committee and local authorities,and also achieved the goals of enhancing finance's two proportion gradually, namely the the proportion of central level funds income occuping the national financial revenue and the the proportion of the national financial revenue occuping GDP, but tax distribution system retains many old system's traces in order to consider certain vested interests, like still according to the cardinal number checking revenue and expenditure cardinal number, following the original solution and the subsidy and so on. At the same time, the tax distribution system reform neglects the limits of intergovernmental disbursement responsibility as a result of stressing the income division, and this causes that the governments' function scope and the governance scope at all levels are fuzzy and the governance and the property rights cannot be distinguished clearly and so on. Under pursuing economic development and motive actuation of achievements, the local authority often favors intervening the economic life excessively, but the local authority often needs the corresponding funds to guarantee its participation in the economic activity, in the situation of tax revenue growing slowly, the local authority has to seek help from the non-tax revenue channel, adopting the local administrative monopoly, and gaining income to deal with unreasonable payment.Based on the angel of fiscal decentralization, this paper has discussed the formation reason of the local administrative monopoly theoretically, and proposed suggestions about how to break the local administrative monopoly target-orientedly. The possible innovation spot of this article is discussing the formation reason of the local administration monopoly based on a financial decentralization frame,and it has made up the disappointment of the existing research in a sense.