Our Balance-provincial Transfer Payments Effect

In recent years, with the rapid development of China’s economy and society, thebasic difference between the level of public services, there is a growing trend in theregion. Without taking into account differences in the level of inter-regional market,the cost of public spending weakens and other relevant factors, narrowing thedifference between the level of basic public services in the region, the first is tonarrow the gap between the level of financial resources to the region. Balance transferpayment system arrangement as important regional financial gap between theequilibrium and promote equalization of public services played. Therefore, thepurpose of this paper is to study the balance of provincial transfer payments in thefollowing balance between government fiscal imbalances are expected to play a role?How it effects? And to analyze the reasons for their problems, this paper analyzes therelevant data Yunnan Province, trying to make a further proof of this, in order toexplore Prospect of optimizing policy balance below the provincial transferpayments.In this paper, a total of six chapters, the first chapter is the introduction,introduces the background, content and meaning, as well as the literature review andresearch methods. The second chapter is the theoretical part of the study of the theoryof balance transfer payments, explore our country balance transfers below theprovincial goal of "what." The third chapter is by the basic situation of our variouspayment system below the provincial equalization transfers, which pointed out theproblems of the current transfers balance below the provincial level. The fourthchapter is the empirical part, in Yunnan Province, Yunnan Province in use2005-2011129counties (cities) statistical data, using least squares (OLS) and panel data modelto investigate the balance transfer payments in Yunnan Equalization Effect narrow thegap between regions. The fifth chapter is to discuss China’s current provincial county (city) balance transfers weaken regional balance in the financial gap between thereasons for the payment, and finally, make policy outlook.The overall conclusion of this article is: My main goal balance transfers is tocorrect the fiscal imbalance between the government and promote the equalization ofbasic public services. Investigation of the individual through the system below theprovincial balance of transfer payments, and found the following characteristics: First,the Midwest Province obvious "learning effect" on the balance-transfer payments;provincial finance between the second regional transfer payment system underdifferent arrangements discretion; Third, the difference between the central andwestern is much smaller than the difference between east and west; fourth, balancetransfer payment policy eastern provinces to be significantly stronger than the effectof Midwest. In this paper, empirical analysis of the payment balance transfer Yunnanconclusion is the following: In the Yunnan127counties (cities), the balance tilted tothe financial transfer payment weaker counties (cities), which has a balanced financialeffects If you do not get transfer payments do not consider the county (city) ie106,tilting the balance of transfer payments to the strong financial counties (cities), thatbalance transfers do not have the effect of balancing financial resources.This paper analyzes the cause of the equalization transfer payments equilibriumeffects of the weakening of reasons: First, the smaller balance transfers, and limitedfinancial balancing balance between regions; Second, balance transfers design isunreasonable, the main consideration the "financial support of the population," asingle indicator, is not conducive to play financial equilibrium effects; balancedallocation of funds transfer payment unscientific design, performance and design ofthe rough and over the coexistence is not standardized, thus affecting the financialequalization effect; Finally, based on reason and proposed policy outlook.