Study On The Impact Of Inter-governmental Transfer Payment On Regional Economic Growth At Provincial Level In China

Through the redistribution of the central-local economic interests, scientificinter-governmental transfer payment system plays an important role in realizingregional financial balance, optimizing the allocation of resources, narrowing the gapin regional economic development, and promoting social justice, etc. In1994, Chinabegan to establish inter-governmental transfer payment system. Since then, in China,more and more studies devoted to evaluate and explain the effect of transfer paymentson the above aspects. However, the results were different. Based on the existingresearch, this article consider using a variety of estimation methods, do properhandling of the data, then test whether different estimation methods can get similar orthe same results or not, so we can enhance the interpretation of inter-governmentaltransfer payment impact on regional economic growth at the provincial level.According to Solow-Swan neoclassical growth model, this paper build paneldata model and its space form, then we use Driscoll-Kraay method, two-step systemof generalized moment method and spatial estimation method to evaluate the impactof inter-governmental transfer payment on regional economic growth at the provinciallevel. Through the study of this article, the author get following conclusion: Firstly,inter-governmental transfer payment can promote regional economic growthsignificantly, without good growth degree. Secondly, inter-governmental transferpayment can significantly promote the regional economic growth in the lessdeveloped areas where is mainly composed of the Midwest of China, and its growthdegree is greater than the national average. Finally, like the great mass of relevantresearch results at present, it has expanded economic development gap betweenregions, and generate a negative effect on regional economy convergence rate whichis not large essentially in our country.