A Further Study On The Relationship Between Fiscal Decentralization And China 's Economic Growth

The basic requirement and responsibility of the Government are providing the basicpublic services. China are faced with the huge gaps of providing basic public servicesamong provinces, social groups, the city and the rural. Improving the fiscal transferssystem is the most direct and effective way to enhance the level of public servicesequalization.The empirical study of the effect of basic public services equalization promoting bythe China’s fiscal transfers system indicates that the vertical transfers narrowed thefiscal gap between the central government and the local governments. But sucharrangement failed to equalize horizontal finical capacity, which caused thenon-equalization of the basic public services. Referring to the international successfulexperience, the paper designs a two level framework of horizontal fiscal transferssystem. According to the fiscal data of2010and2011, with the system framework,the level of public services equalization has been improved31%than traditionalsystem.Chapter1: To introduce the research background and the meanings, and analysis therelevant research literature in China and abroad.Chapter2: to use the panel data of30provinces from2000to2011, analyses theeffect of basic public services equalization and economic convergence promoting bythe China’s fiscal transfers system.Chapter3: to analysis the fiscal practice of America, Australia, Canada, Germany,India and Japan, to summarize these countries’successful experience.Chapter4: to design a horizontal fiscal transfer system framework that equalizesprovinces’basic public services.