Research On The Influence Of Fiscal Decentralization Of Regional Economic Growth

Since China's reforming and opening up,China's central local financial relationships have adjusted for many times,and financial decentralization system have gradually improved after decades of practice.But the reform of tax allocation is not completed,which causes the inequality of regional financial revenue and expenditure,financial governance's unifying,the increase of local financial revenue and expenditure gap.Regional financial fund allocation pattern is directly related to the regional level of capital accumulation.On the basis of original location conditions and resource endowment difference,different levels of capital accumulation makes the eastern,central and western provinces have evident difference in the growth rate of investment in fixed assets,human capital formation,industrial structure,urbanization development level,financial dependence on land,degree of opening to the outside world,and eventually lead to the growth differences of the regional economy.The research of financial decentralization,is based on the finance rights(financial income level)and powers(financial spending levels).This paper first reviews the domestic and foreign theory about the financial decentralization---"financial federalism",then concludes the evolution process of financial decentralization in China since the founding of our country.China's regional economic development level and,the change of regional financial revenue and expenditure scale structure have been evaluated Since 1987.the per capita GDP growth rate of the every province in 1987 to 2015 is explained variables,and the two indicators will measure the level of financial decentralization,to consider financial decentralization,average tax rate,the degree of government economic intervention,openness,fixed investment growth,urbanization rate and other factors' impact on the economic growth.Finally the paper uses panel data to analyze the different measure standard of the relationship between financial decentralization and the regionaleconomic growth difference.Different impacts in financial decentralization system of two stages of 1987 to 1993 on regional economic growth will be inspected.And then it studies the relation between the degree of financial decentralization of the eastern,central and western three areas and economic growth to analyze the effect of financial decentralization on regional economic growth.Based on the above research,from the improvement of the financial decentralization system,regulation of the government functions,reduce of administrative costs,depth of the reform in payment system,depth of the reform of the financial and tax system,etc,to put forward advice about how to improve the existing decentralized system and reduce regional economic differences.