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Fiscal Decentralization,Government Competition And Public Goods Supply

Posted on:2019-12-09Degree:MasterType:Thesis
Country:ChinaCandidate:Z M ShenFull Text:PDF
GTID:2416330548456505Subject:Administrative Management
Abstract/Summary:PDF Full Text Request
China has achieved great success since reform opening policy and it is still growing at the speed 6 percent to 8 percent.However,it reflects the shift in the pattern of economic growth from the economic growth rate of nearly 10 percent to emphasis on steady progress.The effectively supply of public good is directly relative to domestic demand.With the development of society,residents have put forward higher requirements on the supply of public goods.However,as for the situation of the supply of public goods,the investment growth of "hard" public goods such as infrastructure is still fast,while the "soft" public goods supply such as education is insufficient.China has carried out the fiscal decentralization reform which has a far-reaching influence,the key point to understand Chinese style fiscal decentralization is political centralization as well as economic decentralization.Fiscal decentralization is the readjustment of the intergovernmental fiscal relation,which is an extremely important part of fiscal management system.This paper tries to analyze the situation of the supply of public goods from the perspective of fiscal decentralization and local government behavior.In particular,this paper clarifies the incentive and restraint mechanism of fiscal decentralization through sorting out the fiscal decentralization theory.The presentation of the present situation of public goods supply gives us a more intuitive understanding,and then a profound analysis is made.This paper argues that the effective fiscal stimulus of economic decentralization and the government performance appraisal jointly affect the structure of government fiscal expenditure.Decentralization makes local have more financial autonomy,and the political promotion made by the central government is based on GDP achievements.Financial incentives and political incentive combination and interaction of the two encourages the local government launched a competition in the scale,M type hierarchical structure strengthens the incentive mechanism.The results of empirical analysis support the above conclusions.This paper analyzes the influence of financial decentralization and government competitive behavior on the supply level of different public goods using provincial panel data from 1995 to 2012.The results show that fiscal decentralization has a significant positive effect on capital construction,while the impact on education is significantly negative.What's more,we find that the fiscal decentralization has changed the supply level of public goods with the increase of government competition degree.Besides,the regional differences in the supply of public goods are verified by the fiscal decentralization and government competition.Therefore,it's particularly important to improve government management system,especially in the evaluation of local government performance.In addition,the fiscal institution needs to be reformed according to the principle of the matching of the right to the responsibility.Moreover,it's significant to improve the transfer payment system and balance the development among regions.
Keywords/Search Tags:fiscal decentralization, government behavior, fiscal expenditure, public goods
PDF Full Text Request
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