Analysis Of Fiscal Decentralization And Inclusive Growth

Since the reform and opening up,China's overall economic increased rapidly but social inequalities between regions are more and more serious.In the 1990 s,the Asian Development Bank put forward the international organization inclusive growth,promoting social members equally participated in economic growth and shared the achievements of economic growth.Now China's economy is growing steadily,how to avoid social injustice with economic growing to promote inclusive growth is the key problem,which China is facing.Government finances is the primary means of regulating regional disparities,promoting coordinating economic development in all regions by fiscal revenue and fiscal expenditure.Since the tax system reform,the financial resources and responsibilities of county and township are unequal.In order to solve the financial difficulties of counties and townships,the financial system of county administrated by province are promoted by China government since 2002,and basically finished promoted in all the provinces in 2010.However,it raises a question that,weather the fiscal decentralization system with Chinese characteristics has played a catalytic role in inclusive growth or not.This paper will study with the theoretical and empirical analysis by five parts.Firstly,it introduces the research background,significance and research status,and use inequality perspective to divide the inclusive growth into two parts,which includes inclusive growth of urban and rural and inclusive growth of regional.Secondly,based on fiscal decentralization and local government behavior patterns,the second part constructed the impact mechanism between fiscal decentralization and urban-rural inclusive growth and the impact pathways between fiscal decentralization and regional inclusive growth.The third and fourth parts analyzes China urbanrural inclusive growth and regional inclusive growth from 2003 and 2010,and uses the weighted variation coefficient,Theil index and the Gini coefficient to measure the regional inclusive growth.With the ordinary panel model,the impact threshold panel model and dynamic regression models empirically inspection of the impact of fiscal decentralization on inclusive growth,the result shows that Chinese-style fiscal decentralization is the institutional factors of China inclusive growth of inequality,that the fiscal decentralization expands the overall inequality of inclusive growth,the government transfer payments in favor of reducing regional economic disparities,but the impact on regional basic public services is not significant,what's more,the urban-rural income gap and the regional differences in economic development shows the U-shaped curve.Lastly,based on the foregoing analysis,this paper proposed that optimizing officials incentive system,improving the compatible system of powers and expenditure responsibilities,establishing urban and rural public finance system and increasing transfer payments.