Research On Influencing Indicators For Provincial Fiscal Transparency

Fiscal transparency,as a key factor of evaluating the transparency condition of a country's public finance,has become the main stream globally.Based on Principal-agent Theory,there is a long multi-level Principal-agent relationship among the process of public finance,where the public act as the initial principal,while the government is the final agent.Therefore,the principal's control over the agent gets weaker,causing problems such as Adverse Selection and Moral Hazard happen more easily.Increasing the Fiscal transparency is the best choice to solve the problem.This paper aims at finding the indicators that have impact on provincial Fiscal transparency.By applying the data from Assessment of Chinese Fiscal Transparency published by Shanghai University of Finance and Economics,this paper established a panel database of provincial Fiscal transparency of China.Statistics show that the source of provincial party secretary and his major in college,local GDP,the condition of local public finance,as well as other provincial characteristics do have impact on Fiscal transparency,while no evidences show that the age of party secretary,diploma,the percentage of non-tax income,FDI per capita and unemployment rate have significant impact.Given the outcome above,this paper puts forward suggestions such as increasing the incentive effect of Fiscal transparency,improving local fiscal condition,emphasizing the effect of public participation and Internet,to raise the Fiscal transparency.