A Study On The Impact Of Fiscal Decentralization On Regional Economic Growth In China

Since the reform and opening up,China's economy has maintained rapid growth,which is closely related to the reform of China's financial system,especially the reform of tax sharing system.In recent years,China's economic growth began to slow down.China's economic growth rate is 6.7% in 2016,it Still has the characteristics of high-speed.At the same time,China's regional economic development is not balanced,the industrial layout is not reasonable,and the income gap is widening.Under the new situation,it is of great practical and theoretical significance to study how to reform and improve the fiscal decentralization system to play a greater role in promoting economic growth and promoting regional equilibrium.First of all,the paper introduces the basic concept of fiscal decentralization,the economic growth and the related theoretical basis.Then,it analyzes the evolution process of fiscal decentralization in our country,At the same time,the author analyzes the current situation of fiscal decentralization and economic growth in the eastern,central,western and northeastern regions from the perspective of decentralization of fiscal revenue and decentralization of fiscal expenditure and the status quo of the impact of fiscal decentralization on economic growth in China.Then,this paper uses the panel data of 27 provinces or autonomous regions in China from 2001 to 2014,using the fixed effect model to analyze the linear and non-linear effects of fiscal decentralization on economic growth.PVAR model is also used to analyze the effect of fiscal decentralization on economic growth,the impact of lagging of fiscal decentralization on economic growth and impulse response of fiscal decentralization.Based on the above study,the following conclusion can be drawn :firstly,there are significant differences in the degree of financial decentralization in various regions of China;secondly,there is a significant difference in the impact of fiscal decentralization on the economic growth in China;thirdly,the impact of fiscal decentralization on economic growth in China exists lag behind;fourthly,China's regional economic growth for the fiscal decentralization of the impulse response is different.After the conclusion is the countermeasure,according to the theory and empirical analysis of this paper,the countermeasures and suggestions can be put forward.At last,according to the results ofthe empirical analysis and related problems,the paper puts forward some countermeasures and suggestions.The details are as follows: clear the financial rights and powers of the government at all levels,strengthen the reform of the tax system;perfecting fiscal decentralization system,improve the relevant institutional environment;implement different regional policy of fiscal decentralization;establish monitoring system of fiscal decentralization,timely adjust fiscal decentralization in various regions;improve the evaluation mechanism of local government performance.