Research On Non-tax Revenue Expansion From The Perspective Of Chinese-style Fiscal Decentralization

While the over-GDP increasing tax revenue as one critical topic for economic studies,the extraordinary growth of local non-tax revenue has turned out to be new hotspot.In the background of implementing the supply side structural reform,the rapid growth of non-tax revenue is undoubtedly contrary to the central government's tax cuts policy.Exploring the root causes of rapid growth of non-tax revenue and putting forward countermeasures to cope with them have very important practical significance.Under the framework of Chinese-style fiscal decentralization,this paper analyzes the influence of fiscal pressure brought by the reform of tax-sharing system and the local government competition on the growth of non-tax revenue.Using the data from 2000 to 2014 on the province level,the spatial dynamic model shows:(1)The fiscal pressure brought by tax-sharing reform under Chinese-style decentralization is an important factor leading to the growth of local non-tax revenue.The central government's tax concentration for each increase 1%,the per capita non-tax revenue increased by 0.36%;(2)Local government competition under Chinese fiscal decentralization further intensifies the growth of non-tax revenue.The spatial dynamic model shows,the local governments have typic “Strategy imitation”,using the local non-tax revenue to make up for fiscal revenue and expenditure gap will be imitated by other regions,which led to the general rise in non-tax revenue;(3)Non-tax revenue growth under the Chinese-style fiscal decentralization shows structural differences,administrative fees and special income as the absolute subject of non-tax revenue are the main means for local government to deal with the central government's “grabbing hands”;(4)Sub-regional robustness tests further shows,there have different non-tax revenue competition strategy between tax inflow and tax outflow region.In the tax inflow region,local government main using administrative fees to make up for fiscal revenue and expenditure gap,showing “race to the bottom” features.While the local government in tax outflow region main using special income to make up for fiscal revenue and expenditure gap,and taking the “Strategy imitation” strategy.Which the competition for public services may be an important incentive to take this strategy for tax outflow region.Compared to the existing research,This paper further explores the structural differences in the growth of non-tax revenue,and makes a reasonable explanation of the structural changes within non-tax revenue.At the same time,under the framework of Chinese-style fiscal decentralization,by introducing the spatial dynamic panel model,this paper analyzes the economic logic and political logic of non-tax revenue growth,providing a more comprehensive explanation for non-tax revenue expansion.