Research On Fiscal Equalization Effects Of Transfers Within Province

Since the policy of reform and opening up, China’s economy ushered rapid growthin the past thirty years and kept continuous double-digit growth rate in the recent yearsespecially, along with which, the living level of the people then increased significantly.But, since the differences of infrastructure conditions and resource endowment betweenregions, economic development level also is extremely uneven. In the recent years, withthe development of the economy, the development level of the growing gap enlarged andregional financial resources and the level of public service gap also amplified, which hasbecome a bottleneck for comprehensive and balanced development of Chinese economyin the future the.Because of the difficulty of collecting data and the practical applicability of theresearch itself, this paper narrows the research scope, analyze the fiscal equalizationeffect of the government transfer payments in Shaanxi province specifically. This articlestarts with the basis of the existing research results of the subject of the domestic andoverseas scholars. Firstly this paper gives a detailed study and description of the currentsituation and existing problems of the transfer payment of Shaanxi province by a seriesof data and text detailed historical analysis. According to the nearly10year’s transferpayment data of Shaanxi province, after using the comparison analysis method, thevariation index method, and a regression analysis, the article concludes that the paymenteffort of nearly ten years of Shaanxi government to improve financial transfer of Shaanxiprovince longitudinal imbalance didn’t play a significant effect, but it has some of thelateral financial effect. Finally, according to the empirical analysis conclusion andcombined with the reality, this article gives the policy suggestions on how to improve thefinancial equalization effect of intergovernmental transfer payments in Shaanxi province.