A Study On The Effect Of Fiscal Decentralization And Anti-Corruption To Total Factor Productivity

At present,China's economy needs to turn to a high-quality and efficient way of development in a new period of political and economic transformation.The key lies in improving total factor productivity,emphasizing technological progress and R&D,and achieving green economic development.At the same time,as an important internal driving force of China's national economic and social development since the reform and opening up,fiscal decentralization is closely related to the total factor productivity.The incentive mechanism under the background of fiscal decentralization urges local governments to actively develop local economy,but the impact on economic efficiency is not clear.In addition,the continuation of anticorruption has put forward new requirements for theoretical research in related fields,while China's economic development has entered a new era.The impact of anticorruption on economic growth may lead to different effects in an institutional environment with different degrees of decentralization.Therefore,this paper puts fiscal decentralization and anti-corruption into a research framework to analyze the impact of fiscal decentralization,anti-corruption and their interaction on total factor productivity.Based on provincial panel data from 2004 to 2016,and considering energy input and unexpected output,this paper uses EBM model to calculate China's interprovincial total factor productivity,and studies the impact of fiscal decentralization and anti-corruption on total factor productivity based on dynamic spatial autoregression model and panel threshold model.Research shows that total factor productivity has significant spatial spillover effect and time inertia.The promotion of fiscal decentralization affects economic growth efficiency and ecological environment by blindly pursuing rapid economic growth,crowding out private investment and reducing macro-policy effects,which leads to the decline of total factor productivity.And there is a non-linear relationship between anti-corruption and total factor productivity.The areas with low level of anti-corruption correspond to the initial stage of anti-corruption struggle.This stage requires a lot of resources,and diverts the attention of government staff to promote economic growth,which is not conducive to the improvement of total factor productivity.When the level of anticorruption crosses the inflection point,that is to say,after continuing to fight against corruption to a certain stage,it can reduce the uncertainty of market operation,increase the efficiency of market resource allocation,provide enterprises with a more fair and open competitive environment,reduce the cost of production and transaction in the market,and improve the efficiency of government agencies,so as to enhance total factor productivity at a faster and faster speed.Through regression analysis of threshold model,it is found that the effect of anti-corruption on total factor productivity is not significant in the low fiscal decentralization areas,because centralization of power reduces the impact of corruption.After crossing the threshold,anti-corruption can promote economic growth efficiency and environmental protection by improving government efficiency,increasing the scale of serviceoriented public expenditure,reducing high-polluting enterprises and strengthening environmental regulation,thus having a significant positive effect on total factor productivity.