Study On The Fiscal Capacity Assessment And Compensation Policy Of Major Grain Producing Areas-empirical Analysis Based On Data Of County-level In Shandong

The No. 1 central document was released in 2015, food safety issues was put in the first place. The No. 1 central document once again stressed the importance of agricultural production in 2016. In recent years, part of grain producing areas fall into a cycle, "the grain province, poor finance province". The imbalance of local fiscal capacity in the region is increasingly prominent. The fiscal capacity of major grain producing areas is not only related to food security, but also affects the local economic development and the supply of public services. On the one hand, major grain producing areas must strengthen the food production, need pay a lot of money to maintain food security; on the other hand, it put costs for economic development, to realize upgrading of industrial structure and effective supply of public goods, so compared to the non-grain producing areas, grain producing areas under greater financial stress. Therefore, the status of fiscal capacity, influence factor of fiscal capacity, and how to improve the fiscal capacity of major grain producing areas are worth exploring. In addition, Shandong province as one of the major grain producing areas, studies the relationship between the fiscal capacity and compensation mechanism has typical significance.Paper’s clue is promoting problems, analyzing problems and solving problems. Firstly, this paper introduces the connotation of major grain producing areas, the connotation of fiscal capacity, as well as the related theory, including the theory of main function region, the externality theory. Secondly, it combines with the present situation and characteristics of the major grain producing areas’ fiscal capacity in Shandong, start from four aspects, which include fiscal income, financial growth potential, spending ability and self-sufficiency, establish evaluation index system to analyze major grain producing areas’ financial ability. Then on the basis of the existing analysis, the paper uses the factor analysis method, puts fiscal capacity to be explained variable, uses the influence factors of the fiscal capacity as explanatory variables, selects Shandong province 2014 data at county level, uses 18 evaluation index, makes 25 grain production counties and five non-grain producing counties as the research object, establishes the evaluation model of fiscal capacity, points out that compared with non-grain producing areas, the major grain producing areas fiscal capacity is weak. At the same time, the article uses cluster analysis, summarizes the factor structure of 30 counties financial ability, finds out the deep-seated problems of fiscal capacity. Further analyzes the different fiscal capacity between major grain producing counties and non-grain producing counties, it has a great influence on public services. Finally, on the base of the previous theoretical and empirical analysis, this paper explores the major grain producing areas’ financial compensation policy.