Investigating The Motivation Of Local Government Innovation In China

The purpose of this paper is to investigate the motivation of local government innovation in C hina in recent years.It is not only conducive to dealing with the difficulties of local government innovation in C hina currently and improving the innovation of local government in China,but also accelerating C hinese political reform and balancing the development of polity and economy.However most of the existing studies were case studies,the conclusions of these case studies were ambiguity or applicable partially,could not deal with this question.So this paper try to answer this question with empirical analysis.The analysis is based on the newest declaration data of China local government innovation award and the theories of local government innovation and fiscal decentralization.This paper consists of four parts.The first part is Introduction.Firstly the paper summarizes the status of Chinese local government innovation study from the conception,motivation and difficulties.Then,the research questions are got.Afterwards this paper elaborates the study significance and solution to these questions.In the end of this part,the framework of this paper is presented.The second part is theoretical reviews.This part mainly discusses the advantages and disadvantages of fiscal decentralization and fiscal centralization to local government innovation.This part quotes much from classical liberalism theory and new classical liberalism theory,as well as the rethink of modern scholars.In the meantime,the paper analyzes the difficulties of C hinese local government innovation based on above theory.The third part is variable selection and descriptive statistics.This part uses the declaration data of C hina local government innovation award to measure the activity agree of C hina local government innovation from 2005 to 2014 year,and analyzes some influence factors by descriptive statistics,such as agree of fiscal decentralization,development of economy and society,degree close to activity area and number of administrative division.The final part is measurement model and data analysis,which is the key part of this paper.In order to test the influence of agree of fiscal decentralization and development of economy and society on local government innovation,this part presents five models with different independent variables.The results of data analysis prove that the main motivation Chinese local government innovation is agree of fiscal decentralization not the development of economy and society,and the influence of different aspect of the development of economic and society on local government innovation is different.