The Local Financial System To Promote The Economic Development Mode In The Internal Mechanism And Empirical Research

As far as The Twelfth Five Year Plan put forward, the transformation of economicdevelopment mode becomes increasingly important. And the reform of the local fiscalsystem as an important lever of economic development, plays an important role. Theexisting literature on the relationship between local financial system and thetransformation of economic development mode, carried out an extensive theoretical andempirical research, and put forward a lot of suggestions. However, China’s economicdevelopment still has extensive features, in order to effectively change the mode of theeconomic development; we need to know the intrinsic relationship between them.This text is divided into five chapters, the first chapter is preface, explains researchmotive and purpose, research contents and method, research range and restriction herein,and so on.Chapter2mainly studied local financial system to promote the economicdevelopment mode in the internal mechanism, which is one of the core of this study.Our research on local finance reform starting from three aspects, namely, theperspective of local revenues, expenditures and transfer payments. The study found thatthe development of local financial system to promote the transformation of economicdevelopment mode has a significant impact, and different local financial systemperspective on the economic development mode’s effect is different.Chapter3selects six provinces from three regions in China, and makes acomparative analysis on promoting the local financial system around the transformationof economic development mode. Through the case study, we found that different areasof reform measures are different, all according to the actual situation and the existingproblems, the implementation of various reform proposals.Chapter4mainly from an empirical point of view, we use Difference In Differencemodel analysis method to prove the local financial system to promote the economicdevelopment mode in the level of performance, take Zhejiang county authority reform,for example. The empirical results show that the influence of Zhejiang county authorityreform in the whole social fixed assets investment, the basic old-age insurance and thebasic medical insurance rate significantly positive impact, while the tertiary industry’scontribution to the local rate of GDP is negative. Chapter5is the conclusion and policy recommendations section. Based on earlierresearch, the paper still from local revenue, local fiscal expenditure and the local fiscaltransfer payment, put forward countermeasures and suggestions, in order to make somecontribution to the follow-up study.The innovation of this paper is to analyze the local fiscal system intrinsicmechanism of promoting the transformation of economic development mode fromdifferent point of view. At the same time, we also combine the case studies with theeconometric model analysis, to summarize and evaluate the effect of local financialsystem reform from the empirical point of view, this is rarely used in previous studies.Of course, since this relatively broad scope of the study, it is not possible for everydetail. In the case study, because of limited access to sources of information, so therewill be some errors. In addition, due to the availability of the selected sample of datasources, we can only choose some indicators as a representative, to be demonstrated inthe model, so it may be biased.