An Empirical Study On The Impact Of Years Of Official Service On Local Financial Development

During the 40 years of reform and opening up,small and medium-sized enterprises have developed rapidly.They have played a positive role in optimizing the industrial structure,solving employment problems and promoting the sustainable and stable development of the economy.However,small and medium-sized enterprises are limited to the opaque internal information and their own small-scale assets,it is difficult to obtain sufficient loans compared to large enterprises,which is not conducive to economic development.Local financial institutions established to promote the development of small,medium and micro enterprises and the rural economy:rural cooperative banks,rural credit cooperatives,rural commercial banks,rural mutual funds cooperatives,village and town banks,loan companies and microfinance companies with their simple loan procedures and low financing costs provide a lot of financial support for the development of small and medium-sized enterprises.It can be seen that the relationship between economic development and local financial development is mutually reinforcing.The demand for funds by the development of market economy provides the necessary conditions for the existence of local finance,and the support of local finance in turn promotes the development of market economy.Fiscal decentralization reform has made local governments asymmetric in fiscal powers and administrative powers and unbalanced fiscal revenues and expenditures,but it also has greater autonomy for economic development.Local governments compete for financial resources to develop the economy.As the central government and its functional departments redistribute the authority of financial management and delegate some of the authority of local financial management,the authority of the local government to supervise local finance is also increasing,which can largely interfere with the development of local finance.Existing studies have mostly studied the local financial development from the macro level of local government behavior impact.In fact,the official's decision-making is behind the government's behavior.The personal characteristics of officials will affect their decision-making motivations,which will be reflected through the policies and systems formulated by the government.This article studies the impact of tenure in personal characteristics on local financial development from the perspectives of provincial officials and officials of 137 districts and counties in Shandong Province.This article is based on high-level theory,endogenous economic growth theory,information asymmetry theory,fiscal decentralization theory and official promotion championship theory.It is deduced that years of official service will affect economic development,and then affect the development of local finance that provides financial support for economic development.Therefore,it is assumed that there is a certain correlation between the years of official service and the development of local finance,and analysis is made through empirical tests,and the following conclusions are drawn:First,from the perspective of provincial officials,the relationship between the yesrs of service of the governor and the secretary of the provincial party committee and local financial development has shown an inverted U-shaped passed the significance test.By replacing the explained variables with the robustness test,the relationship between the years of the provincial party committee secretary's service and local financial development passed the robustness test,and the relationship between the years of the governor's service and local financial development did not pass the robustness testSecond,through further analysis of the impact of the years of official service in different regions on local financial development,it is found that the years of service of governors and provincial party committee secretaries in the eastern region has a significant inverted U-shaped relationship with local financial development.There is also an inverted U-shaped relationship between the years of service of provincial governors and provincial party committee members of the central and western region and local financial development,but it is not significant.In other words,compared with the central and western regions,the characteristics of local officials in the eastern region have a greater impact on local financial development.It can be explained by the imbalance of regional economic development.Compared with the central and western regions,the economic development of the eastern region is better,the demand for funds is greater,and the local financial development environment is better.On this basis,changes in the years of office of the governor and secretary of the provincial party committee will have a more significant impact on the development of local finance.The years of office of the governor and secretary of the provincial party committee in the central and western regions has no significant impact on the development of local finance.Third,using 137 districts and counties in Shandong Province as a sample to conduct an empirical analysis of the relationship between the years of official service and local financial development from a micro level,the results are not significant.The reason may be that district and county level officials have less decision-making power over local financial development and do not have sufficient rights to affect local financial development.Therefore,the decision-making power that determines local financial development is more concentrated at the provincial level,and the impact of district level on policymaking is small.