An Analysis Of Local Public Fiscal Expenditure Efficiency

Since reformed of the administrative system and further transformed government functions from "Omnipotent" to "Service-oriented" has been advanced at In the third plenum of the16th CPC central Committee, local governments at all levels pour huge human and material resources in supplying public services and products, such as education; health care, social security and so on. Governments’financial expenditure shows a progressive growth as well, which share of GDP increased from16%in2000to more than24%in2012.However, the demand gap to the public products from residents to supply from government hasn’t filled since the financial expenditure increases largely each year. The news about difficulty in seeking proper education or health care is still appeared frequently in the media, and many of people are not satisfied with governments’public services in education; health care; environmental protection and so on. Because of the strange phenomenon, it’s necessary to research the governments’financial expenditure efficiencies. Researching on the issue will bring important theoretical and practical significance in deepening China’s financial system reform, optimizing the structure of financial expenditure and providing more public products and services to the public.<a>the study perspective of this dissertationThe financial expenditure of China has based on central fiscal and local fiscal and the role of local governments’fiscal expenditure is ensuring the healthy development of government, economy and enterprises. The paper chooses the province (autonomous region) as a unit as the province (autonomous region) has the highest independent in public financial expenditure. The range of local public financial expenditure in this paper mainly includes four aspects:education; health care; social security and employment; infrastructure construction in urban and rural regions. There are two reasons:first, the four aspects are most closely related to the public; second, the four aspects have a large proportion in local financial expenditure respectively every year.<b>the main structure of this dissertationThe first chapter is introduction. In the first, analyze the background and significance; Secondly, summarize the research situation; thirdly, introduce the research method, research ideas and main features.The second chapter is theoretical analysis of efficiency of local public financial expenditure. The chapter has two parts:the first part is the theory of local financial expenditure; the second part is the theory of efficiency, including definition of efficiency and common methods of evaluating efficiency.The third chapter is the study of methods and models. Around this part of the purpose of this study, in based on the results of previous studies, the paper formed the methods and models, and shows more systematic introduction and demonstration. This chapter contains three parts:in the first part mainly introduces the principle of DEA and SFA respectively; in the second part introduces the3-stage DEA model this paper needed; in the third part defines the input, output and environmental indicators of local governments’financial expenditure.The fourth chapter is the empirical analysis. This chapter mainly includes:the descriptive statistical analysis of financial input and output; the comparative analysis between the first-stage efficiency and the third-stage efficiency; the influence of environmental variables on the efficiency of local public financial expenditure; the absolutely B convergence of different regions.The fifth chapter is conclusion. Summary and card the paper; mainly findings from this study; the under-research and so on.<c> the innovation of this dissertationFirstly, introduces the three-stage DEA model, make the efficiency values become more accurate by the adjusting of SFA model. Besides, investigates the influence of demographic factors; economic factors and regional government factors on the efficiency of local financial expenditure.Secondly based on the efficiency of local governments’public financial expenditure by3-stage DEA method, this paper makes two useful expansion:on the one hand, according to the pure technical efficiency and scale efficiency, China’s local governments’public financial efficiency can divide into four types:"high-high";"high-low";"low-high";"low-low". On the other hand, whether the local financial efficiency has the absolutely β convergence of different regions between2009to2012.<d> the main conclusions of this dissertationFirstly, China’s local governments continue to strength their roles of supplying public products and services. Education; health care; social security and other livelihood projects have play more and more important roles in local pubic financial expenditure. The total and per public financial expenditure on the eastern region is much more than the middle and western region, the eastern region provides more public products and services than another two regions.Secondly, the efficiency of public financial expenditure on the eastern region is equal to the middle region, the efficiency on middle region is1percent than eastern before eliminating of the environmental variables and random factors. However, after adjustment the efficiency on eastern region is much higher than the middle region as the efficiency on middle region is substantially reduced. The public financial efficiency on western region is much less eastern and middle regions in spite of great improvement after adjusted. On the eastern region, efficiency Loss of public financial expenditure is mainly due to the lower management level. On middle and western regions, the efficiency loss is caused not only lack of management level but also the supply couldn’t match the people’s demand.Thirdly, the high population density; the per capita GDP; the local government scale and the average education attainment are beneficial to provincial governments’ financial expenditure efficiencies. However the per capita budget revenue has a negative impact on provincial governments’ financial expenditure efficiencies.Fourthly, the technical efficiency and scale efficiency have absolutely β convergence between different regions, but the pure technical efficiency isn’t satisfied absolutely convergence. Within the region, the technical efficiency and scale efficiency have absolutely convergence in each region, in the pure technical efficiency, only the eastern region’s PTE has absolutely convergence.