The Impact Of Fiscal Decentralization On Green Total Factor Productivity In China

From 1978 to 2018,the total GDP of the China increased rapidly from RMB 367.8 billion to RMB 900.309 billion.However,as the economic aggregate continues to increase,the shortage of resources and environmental pollution are becoming more and more seriously.Green total factor productivity takes into account economic development and energy and environmental factors,and its growth is an important criterion for measuring the sustainable development of the economy.Domestic scholars believe that the institutional roots of China's extensive economic development are mainly fiscal decentralization.In 1994,China formed a political decentralization system with political centralization and economic decentralization.As an internal driving force for national economic and social development,it stimulated the motivation of local officials to develop their own economy and optimized the allocation of local government resources.The growth of green total factor productivity has had a profound impact.At the same time,the 19 th National Congress also pointed out that fiscal decentralization will help China's economy transition from pursuing high speed to pursuing high quality.Therefore,in terms of China's institutional reform,fiscal decentralization is undoubtedly the most important aspect.On the basis of summarizing relevant literature,theory and current situation,the article explores the impact of China's fiscal decentralization system on green total factor productivity and its internal transmission mechanism,and collects provincial-level panel data from 2001 to 2016 for empirical analysis,Assume that the test is carried out and finally make targeted recommendations based on the empirical results.The main structure of the article is as follows: First,summarize the development theories related to fiscal decentralization and green total factor productivity,and re-shape the connotation of green total factor productivity on the basis of considering both the input of energy consumption and the output ofenvironmental pollution.This paper analyzes the intrinsic influence mechanism of China's decentralization system on green total factor productivity from the perspectives of resource optimization and government behavior distortion,and proposes theoretical assumptions accordingly.Secondly,through the collation of relevant literature and data,the status quo of post-1994 decentralization and the environmental governance under the background are analyzed.At the same time,the article uses the SBM direction distance function and the ML productivity index method to estimate 2001 through relevant software-The green total factor productivity index and its decomposition items in 30 provinces and municipalities(excluding Tibet)in 2016,and the above estimation results are analyzed based on two dimensions of vertical time and horizontal region.Thirdly,on the basis of theoretical analysis and current situation analysis,based on the provincial panel data from 2001 to 2016,the random effects model is used for empirical testing,and feasible suggestions are proposed based on the empirical results.The conclusion of this paper is: First,whether it is observed from the whole country or sub-regions,the green total factor productivity shows an upward trend.However,there is obvious regional heterogeneity.The growth in the east is more optimistic.The results of the central and western provinces are relatively close,and the upward trend is relatively flat.And the increase in the eastern provinces is much higher than in the central and western provinces.Second,the empirical analysis shows that: First,the decentralization indicators considered from the three perspectives of income decentralization,expenditure decentralization,and fiscal autonomy have stimulated the growth of GTFP.Second,fiscal decentralization can enable lower-level governments to optimize the allocation of resources by introducing high-quality FDI,increasing the scale of science and technology investment,improving regional human capital,and improving local infrastructure levels,thereby promoting the growth of GTFP.Third,fiscal decentralization inevitably leads to small financial investment in basic public services such as the environment,repeated infrastructure construction,market segmentation,etc.,which in turn leads to distortions in government behavior and inhibits GTFP growth.Thirdly,according to the empirical conclusions of the article,relevant suggestions are put forward: further improve the transfer payment system,promote the coordinated development of the eastern,central and western regions,promote the establishment of decentralization laws at all levels of government,and improve the responsibility and expenditure responsibility of education and environment in China.