The Research On Affecting Factors Of The Differences Of Expenditure Of Basic Public Service Among Prefecture-Level Cities In Sichuan

The differences in aspect of expenditure of basic public service are not good for achieving the goal of promoting the equalization of basic public service. The research on factors that can influence the expenditure of basic public service among regions can help us to understand the deeper causes of differences in aspect of expenditure of basic public service. This article makes empirical analysis on the difference of expenditure of basic public service among seventeen prefecture-level cities in Sichuan province based on panel data from 2006 to 2013. The article builds three panel data models which are pooled regression model, fixed effects regression model and random effects regression model. Then we choice the random effects regression model through the F test and the Hausman test.The result shows that per capita GDP is not the main factor that influences the per capita expenditure of basic public service, but with the economic growth the per capita expenditure of basic public service increases gradually. The independent variables including urbanization intensity, disposable incomes of local residents, proportion of villagers who enjoy the rural minimum living guarantee and traffic condition have a positive effect on the per capita expenditure of basic public service. The urbanization intensity has the biggest impact on the dependent variable, that is to say, an additional unit of urbanization intensity can make per capita expenditure of basic public service increase by 0.67 unit. On contrary, the degree of industrialization and the population size have a negative effect on the dependent variable. The reason is that the process of industrialization can create lots of jobs which can reduce unemployment and promote the quality of life. As a result, the fiscal pressure of local governments is not very big. Because of the scale effects, with the increase of population the per capita expenditure of basic public service descends. In other words, the local government can use less resource to provide the same level of basic public service.In the end of the article, we put forward some policy suggestions about closing the gap of per capita expenditure of basic public service among prefecture-level cities on the basis of researching results. In order to provide a better and more comprehensive basic public service, the government should change the government functions, adjust structure of government expenditures and optimize the industrial distribution.