A Study On The Relationship Between Fiscal Decentralization And The Quality Of Regional Economic Growth

Since the late 1990 s, the theory of fiscal decentralization is an important field of economic researches. All the first and second generation theory of fiscal decentralization, put the link between the fiscal decentralization and economic growth(quantity) as the foothold of their researches. However, with the development of theory of the economic growth and the reflection of social economic, economic growth is not only inclusion in the number of absolute increase, more includes all aspects of economic society promotion; However in the existing literature, the quality of economic growth is an important manifestation of economic growth, few people involved. And fiscal decentralization as a kind of financial system, is no direct impact on local economy, but this policy system will have a direct incentive to local government behavior, so that local government directly intervene in all aspects of local economic development.Finally, local governmentthrough all aspects of the connotation of the quality of economic growth impact on the quality ofeconomic growth.In this paper, the quality of economic growth is a breakthrough point. First of all, in the aspect of theory.The paper analysis fiscal decentralization how intervene the quality of local economic growth by the behavior of local government. Secondly, in the empirical analysis,five aspects of the quantity of economic growth include: the structure of economic growth,the efficiency of economic growth, stability and sustained of economic growth, welfare and income distribution, the costs of resources and environmental. The paper measure the quality of economic growth of 29 provinces by principal component analysis method at the foundation of the panel data of 29 provinces in 2004-2013 years,andthen analysis it.The results show that: Beijing, Tianjin, Shanghai, Jiangsu Province, Zhejiang Province have been relatively good to the quality of economic growth. The quality of economic growth in Anhui Province, Guangxi Province, Sichuan Province, Ningxia Province, Gansu Province, Qinghai Province have been at a low level.The paper researches the relationship between fiscal decentralization and economic growth quality in different regions by using the fixed effect model. Results show that: fiscal decentralization on Regional economic growth quality have significant role in promoting; and the western region of the promoting effect is significantly higher than that in the eastern region; but employment population and R&D investment hinderthe quality of regional economic growth, but investment in fixed assets on the contrary. Finally according to the empirical results and the actual situation of local economy, some possible policy recommendations are given.