Analysis Of Fiscal Decentralization On Educational Inequality

Education is the foundation of country,the approach to be powerful.The current situation is not only related to the development of national quality,but also affects social harmony and stability.Since the reform and opening up,with the rapidly growth of the gross national product,the national public services is also growing fast.But compared to other same development level countries,China's education spending accounted for the gross national product is less than 4% which is basic objectives for other countries.In 1994,our country has begun to implement the reform of the tax system,it had definitely divided the cope of central and local financial power,but not the cope of authority power between them.According to the traditional decentralization theory in western,decentralization is much benefit for the apply of local public service,but in China,there are a variety of causes of the distortion of government behavior,the supply of public services has been became worse,it doesn't like good as western theory.This dissertation is to study under the fiscal decentralization system,which combined with some other economic conditions in China,to analysis education expenditure inequality.Whit the conclusion,we put forward suitable policy suggestions to solve the education expenditure inequality,and supply the advice to other public areas,make government manage the country more efficient.From the overall structure of this dissertation,there has mainly five parts.The first part is introduction,this part introduces the writing background,academic significance,literature review and some difficulties we might have.The second part focuses on the theory of fiscal decentralization,from the evolution the first generation of fiscal decentralization to the second generation of fiscal decentralization,and relating meaning and characteristics of public goods.The third part is empirical model analysis.We apply VAR model,select some data relate to elementary education and higher education,we come to following conclusions: the greater the degree of fiscal decentralization,the expenditure of primary education become much less,then decreased gradually;the effect gradually weakens following.The greater the degree of fiscal decentralization,the per capita education expenditure of higher education increase,and this effect has persistent effects for a while;The fifth part discusses the influence of fiscal decentralization on the unbalanced allocation of regional educational resources and the allocation of educational resources.We select Theil index of education level,constructing an econometric model to investigate the expenditure level of fiscal decentralization on the regional education direction function and effect of non-equilibrium;further analysis of various factors affecting the education expenditure unbalanced degree.The sixth part makes a overall conclusion and puts forward the corresponding policy recommendations.It mainly includes the reform of incentive mechanism;change the role of government;reasonable division of financial governance;multi-channel financing means;and the improvement of the relevant laws about how to improve our inequality of educational expenditure.