The Research Of Financial Development, Fiscal Decentralization And Regional Difference Of Economic Growth

After the third plenary session of the eleventh,1978, China began the history of the reform and opening up process. For 30 years, China has made the achievement is remarkable, and one of the most eye-catching is the rapid growth of GDP. This is abroad praised as "China miracle" of the world rare phenomenon is mainly embodied in the sustained and rapid growth of economic scale. It can be seen that many factors influence each other, work together, thus created the miracle of the last thirty years. In many factors, the financial system reform and fiscal system reform has played a pivotal role. About the reform of fiscal system, its essence is the central government decentralization, local government to obtain corresponding financial a decentralization process, and the financial system reform is in the process of financial development and financial deepening.About the fiscal decentralization brought what kind of impact on the economy, the theoretical circle has yet to reach a consensus, different scholars draw very different conclusions by different methods. But in the financial development has what impact on the economic growth, at this point, scholars have reached a consensus, basically the contribution of the financial development to economic growth is obvious. According to the existing literature, you can see that whether financial development to economic growth, and on the impact of fiscal decentralization on economic growth in the related research are relatively rich, but the financial development and fiscal decentralization may produce interaction, which ACTS on the macroeconomic growth. About the interaction of both, the related research is rare, and the existing literature, more focus on the overall research, on the regional differences in financial development and fiscal decentralization of economic growth difference is seldom involved. So this article combine the financial development and the fiscal decentralization, not only studies both the independent effect on the economy, also study the interaction of both, and on the basis of the analysis what is the differentiation between different areas.First of all, this paper related the existing research review of scholars both at home and abroad, and summarizes respectively from the theoretical and empirical level of financial development and its influence on economic growth and the impact of fiscal decentralization to economic growth. In systematically comb and review related literature, on the basis of reference to the analysis method, provide beneficial help for the further study of this article. Second, reviewed the financial institutional change in China since reform and opening up and financial system reform, the history and present situation of a systematic carding and description. Later, in the financial development, the role of fiscal decentralization on economic growth were analyzed before, need to China’s economic growth, financial development and fiscal decentralization conditions have an overall description, and on this basis, summed up regional differences. According to the availability of data, this article will data deadline is limited to 1999 to 2014. First introduce the basic situation of this period our country economic growth, mainly from two aspects of total features and regional statistical analysis respectively, find the latest 15 economic growth has made greater achievement in our country, but there is a problem is that we need to face. At the same time, the author draw lessons from the relevant scholars in measuring the financial development level, degree of fiscal decentralization in the building of the various indicators, based on the selection of some suitable and reliable access to data reflect the development of China’s financial, fiscal decentralization index, and choose appropriate relevant control variables that can affect economic growth. Upon the completion of the integration of data, using fixed effect estimation method, the economy is divided into eastern, central and western three areas, respectively, of fiscal decentralization, the interaction of financial development and economic growth. Finally, on the basis of quantitative analysis, the writer puts forward the basic conclusion of this article, and on the basis of the policy implications in the conclusion that, the author of how to enhance the level of financial development and promote steady economic growth, stable fiscal decentralization system put forward some policies and measures. The full text finally also put forward in this paper, we study the possibility of the deficiencies and future research direction.