Research On The Impact Of The Replacement Of Secretary And Governor Of Provincial Party Committee On Local Financial Expenditure

Now China is prosperous.In the past 40 years since 1978,when China implemented the policy of reform and opening up,the turnover of local officials has become the norm.Many economists have paid attention to the important role of local officials in economic development.At present,many economists at home and abroad focus on the relationship between the governance dimension of government officials and economic growth.Through empirical research,we find that there is a clear relationship between local government officials and local economic growth.Because the policies implemented by local governments are different,there are great differences in attracting investment,regional competition and local economic development.Local fiscal expenditure is obviously one of the fiscal policies that local governments focus on.At the same time,due to the system of fiscal decentralization and political centralization,local government officials have both ability and incentive to influence local financial expenditure.Firstly,regarding incentive motivation,because of the current system of fiscal decentralization and political centralization in China,local government officials have incentives to actively improve local financial revenue,and incentives to actively work hard to obtain promotion opportunities,which makes local government officials have a great incentive to influence local financial expenditure in terms of economic behavior.On the other hand,local government officials also have the ability to influence local financial expenditure.Local government officials have gained greater autonomy in local financial expenditure because of the fiscal decentralization system implemented in our country.Thus,local government officials have the ability to influence local financial expenditure.Because of the implementation of the political centralization system,some actions of local government officials in our country will be limited by the supervision of the central government,but local government officials also gain the power to dominate their lower officials,and then influence the provincial budget process through formal system and informal system such as "approval rules".Therefore,the study of the relationship between provincial officials and local financial expenditure,and the analysis of the mechanism and specific effects of the replacement of provincial government officials on local financial expenditure,not only has a clearer understanding of the fiscal expenditurepolicy of local governments and the management system of the economic behavior and political factors of local government officials,but also contributes to the rapid development of our economy.This paper attempts to systematically examine the local financial expenditure of our country from the personal level of provincial officials(provincial party secretary and provincial governor).In terms of theory,this paper analyses the theoretical mechanism of the impact of provincial official turnover on local fiscal expenditure,and emphasizes the impact of provincial officials on local fiscal expenditure.Empirical analysis,based on the sample data of the changes of provincial Party committee secretaries and provincial governors in 31 provincial administrative regions of China from 1998 to 2017,the age of serving and the level of education,and matching economic variables,this paper investigates and analyses the relationship between the change of provincial Party committee secretaries and provincial governors and local financial expenditure.The study finds that the change of provincial Party committee secretaries and provincial governors increases financial expenditure.The length rate has a significant negative effect.This study is robust and enriches the study of economic growth.