Study On Quadratic Performance Of The General Transfer Payments Of Province-to-county In China Based On Factor Analysis And DEA

In recent years, unprecedentedly rapid developments took place in China’seconomy, thus worsening the already severe imbalance of wealth between regions.The issue at hand contradicts the founding philosophy of the fair and just socialistsociety, creating an obstacle in the way of consistent healthy economic and socialgrowth. General Transfer Payments can be a solution to the aforementionedproblems, in that it evenly distributes wealth with in a region, as well as decreasesthe gap between regions. The lacking of protocols and effective monitoring methodsof funds has caused the Payments to be shifted to various unintended andunauthorized uses. To ensure that the intentions of the higher level governmentoffices are executed correctly, and to achieve the goals, a feedback system andvarious regulations must be set in place in order to encourage and monitor theregional local government offices. Therefore, what can be done to actively monitorand gather feedbacks for a General Transfer Payment, so that goals of the higheroffices can be achieved in a timely fashion has become a more and more frequentlydiscussed question.This article introduces and discusses in depth the theories in relation to GeneralTransfer Payments, Factor Analysis Method, as well as Binary RelativeEffectiveness. In this article, an accurate depiction of current General TransferPayment is illustrated; through comparisons with Specific Transfer Payments theadvantages in effectiveness of the former are carefully outlined. The article alsooutlines the advantages and reasons for choosing the Binary Relative Effectiveness.On the basis of what’s previously mentioned, in correspondence to the actual state ofthe General Transfer Payments in China a model of an effective assessment protocolsystem based on the Factor Analys is Method, as well as Binary RelativeEffectiveness is constructed. The assessment system then takes the HeilongjiangProvince as an example, gives detailed analysis on its General Transfer Payments ofprovince to city, quantitatively assess effectiveness of General Transfer Payments. Itis pointed out that comprehensive performance level in Heilongjiang province is nothigh, but there is a good trend. A supervision and incentive mechanis m shall beestablished as soon as possible to improve efficiency in the use of funds andaccelerate the equalization of basic public services process.