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An Empirical Analysis Of The Relationship Between Fiscal Decentralization And Economic Growth In China

Posted on:2014-02-13Degree:MasterType:Thesis
Country:ChinaCandidate:L L ZhuFull Text:PDF
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Since China began its economic reform at1978, China’s economic developmenthas received remarkable results. There are some reasons induce China’s higheconomic growth. Such as the household contract responsibility system reform inrural areas, the enterprise system reform which introduce material incentives inenterprises and so on, most research neglect the fiscal decentralization reform whichis breakthrough of the economic system reform.This paper built a comprehensive research framework of the relationshipbetween fiscal decentralization and economic growth. Not only clarity the directeffect of the fiscal decentralization on economic growth. But also research the indirectaffect economic growth by affecting those variables which would affect economicgrowth.First, we use fixed effects model and threshold regression model research thedirect effect of the fiscal decentralization on economic growth. Studies show that:1.The effect of the fiscal decentralization on economic growth depends on whichindex was used to measure fiscal decentralization.2. The effect of the fiscaldecentralization on economic growth shows significant regional differences.3. Thereexists nonlinear relationship between fiscal decentralization and economic growth.Secondly, this paper research the indirect affect economic growth by affectingthe equalization of China’s public service which would affect economic growth. Findthat fiscal decentralization on the role of the various areas of science, educationspending is different.
Keywords/Search Tags:Fiscal decentralization, Economic growth, Threshold regressionmodel, equalization of public service
PDF Full Text Request
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