Research On The Influencing Factors Of Local Fiscal Expenditure Bias In China

As we all known,30 years of reform and opening up,China has made remarkable achievements in economic construction,however,such remarkable achievements are companied with the incomplete market,inperfect legal system and the creaking infrastructure which is clearly not in line with the theory of economic growth,so the scholars are all courious about what is in the promotion of Chinese growth?With the continuous innovation in the deepening of this field,scholars begin to jump out of the traditional framework of research,trying to explore the mysteries of the "China miracle",and put forward the concept of the political tournament,the theory points out that behind the incentive mechanism of the so-called "Chinese miracle" are many "originality" incentives,making by the central government to reconcile the interests of all parties in a relatively stable framework,thus forming a unified action vision,to ensure the enthusiasm of the local government to participate in the construction of morden society.Although the political tournament has strong explanatory power to "China miracle",but it implies an important assumption: local officials in the political tournament will have a preference to adjust the structure of local financial expenditure.If this assumption is not met,the political tournament will lose its foundation.Meanwhile,because of the difference of political background,there is a big gap between China and the western countries,which makes us can not directly copy the existing research results abroad.The structure of this article can be devided into three parts: Firstly,basing on the new political economics theory research exploring the reasons behind "Chinese growth miracle".Secondly,discussing the relationship between the local government officials and the deviation of fiscal expenditure structure,the deviation of fiscal expenditure structure and the economy grow,and found that local government officials in China can effect the fiscal expenditure,and consciously increase the economic expenditure investment,but due to the realitionship between the deviation of fiscal expenditure structure and economic growth are not simple linear relationship,so the attempt to improve expenditure blindly for fiscal expenditure While ignoring the input of non economic projects is not helpful to economic growth in a long term.At the end of the article,comes the policy suggestions:(1)Changing the assessment standard of the political tournament,pay equal attention to environmental protection,social security,social security and the happiness of people(2)Stricting the budget management and strengthen the budget supervision.(3)The central government should consciously guide the intervention of market forces,with limited capital investment leveraging social government,the introduction of market-oriented management model to improve the management efficiency and management level.