An Empirical Analysis On The Crowding-out Effect Of Chinese Government's Social Assistance Expenditure On Charitable Donation

Since the reform and opening up policy,China's economy and people's living standards have rapidly developed.But at the same time,the income gap is further widened,with the social contradictions intensifying,a big account of poor population in urban and rural areas is still emerging as well.It is clear that the establishment of a government-led social security system to ensure current social needs is important,but it is far from enough to rely on government public finance to support the system.In this context,charity,as a "gentle hand" to the third income distribution,quietly entered our vision.Since 1981,China has established a semi-official nature of the China Children's Fund,to the Fourth Plenary Session of the 16th CPC Central Committee in 2004 for the first time clearly put forward to "improve the social insurance,social assistance,social welfare and charity convergence of society security system",and then to "charity law "finally landed in 2016.China's charity,after the twists and turns,finally once again ushered in the vigorous development of the spring.With the rapid development of China's charity,there are a great many charitable academic research according to various disciplines.Domestic scholars are trying to.provide objective and rigorous recommendations to the healthy development of China's charity from different angles,using different methods and detailed analysis.The question of concern in this paper is the study of the crowding-out effect of charitable donation in our country.In fact,the research on the crowding-out effect of charitable donations is not a new proposition in many European and American countries.However,there are few studies on this issue in our country,and even the studies on charitable donations behavior are not very rich.In view of this,this paper summarizes the domestic and foreign research situation on this theme,and empirically tests the crowding-out effect of government social assistance expenditure on private charitable donation in China based on a provincial panel data of 1997 to 2014 social assistance expenditure and charitable donation.The empirical results show that the government's public expenditure on social assistance has a significant effect on the charitable donation,but the degree of extrusion is relatively weak.At the same time,we also found that social insurance coverage,the development of social organizations,education and the development of natural disasters can have a significant impact on charitable donations.