The Effect Of Fiscal Decentralization And Transfer Payment On The Supply Of Non-economic Public Goods

The formation of Chinese economic growth miracle depends on China's fiscal decentralization system.Under the encouragement of decentralization,local governments usually do their best to achieve rapid economic growth in the region.Local governments as public goods supply main bodies,when allocating public resources,will naturally allow more financial funds to flow to public goods sectors that are more conducive to rapid regional economic growth.Under such circumstances,fiscal decentralization may lead to local governments exerting important influence on the supply of non-economic public goods that have little effect on short-term economic growth.The transfer payments that central government gives to local governments has increased the financial resources of local governments,has increased the ability of local governments to supply public goods,and to a certain extent,has promoted the supply of non-economic public goods.According to this basic logic,this paper has studied the impact of fiscal decentralization and transfer payments on the supply of non-economic public goods such as basic education.Noneconomic public goods are of great significance to the improvement of people's livelihood and welfare.In the current era of successful completion of a moderately prosperous society,the central government's emphasis on the supply of social public goods has deepened.It is of great practical significance to study the issue of noneconomic public goods supply.The article conducts an in-depth study of the relationship among fiscal decentralization,transfer payments,and the supply of non-economic public goods represented by education supply by constructing mathematical models and empirical regression models,and finds that fiscal decentralization has greatly improved the supply efficiency of basic education,and transfer payments can also improve the problem of insufficient supply of non-economic public goods such as basic education,to a certain extent.This paper also finds that the effect of fiscal decentralization and transfer payment on the supply of basic education has regional differences.The research results show that China's fiscal decentralization system is significantly conducive to the supply of non-economic public goods,indicating that the fiscal decentralization system is constantly improving;the effect of transfer payments on the improvement of the supply of non-economic public goods has regional limitations.Therefore,in the policy discussion section,the article proposes to continue to advance fiscal system reforms,improve local government incentive orientation and fiscal spending bias,actively improve the transfer payment system,play an incentive role in transfer payments,and vigorously develop the economy,so as to make full use of the advantages of decentralization,to improve the welfare of residents,and to achieve the goal of building harmonious society.The structure of this paper is as follows.The first chapter introduces the research background and raises questions.The second chapter makes a comprehensive review of related theories and papers,sorts out the relationship and mechanism among fiscal decentralization,transfer payments and the supply non-economic public goods.The third chapter establishes the theoretical model to provide a detailed analysis of the relationship among the three research variables.The forth chapter uses data and charts to analyze the status quo of decentralization,transfer payments,and noneconomic public goods supply.The fifth chapter use the provincial panel data from 2000 to 2016 to establish a regression model to empirically test the impact of fiscal decentralization and transfer payments on the supply of non-economic public goods.In addition,an analysis of cross-regional effects is also conducted.The last chapter summarizes the conclusions and viewpoints of the paper,proposes corresponding policy suggestion.