A Study Of The Intergovernmental Financial Competition From The Perspective Of The Supply Of Public Goods

Since the reform and opening up,the planned economic system has been increasingly unable to adapt to the development of market economy.To reform the economic system,we must first reform the financial system.The implementation of the tax system in 1994 marked the transformation of China financial system from centralization to decentralization,but this transformation was constrained by the vertical political management system,thus forming a two dimensional Chinese fiscal decentralization system with political centralization and economic decentralization,which encouraged local governments to vehemently compete for economic growth.Government competition leads to the gap of public products supply ability among different local governments.However,our country is now in the adjustment of the demand structure,the quantity and quality of the supply of public goods is greatly improved,so the contradiction between the public demand and the public supply is sharp.At present,the supply of public goods in our country is relatively short in the fields of education,medical treatment and social security,and the allocation of basic public service resources has serious regional inequality.It is of great theoretical and practical significance to explore its formation mechanism and gap and achieve equalization of regional public services.The main body of the supply of public goods is the government,and the public product expenditure is the main means of the intergovernmental financial competition,so it mainly analyzes the problems in the supply of public goods from the Intergovernmental competitive strategy.In this paper,the financial behavior of 31 provinces in China(including 4 municipalities directly under the central government)in2016 is taken as the research object.Through the use of factor analysis,the complex variables which affect the competition strategy of the intergovernmental financial competition are simplified and reduced to the influence factors.The financial competition has been drawn up through the empirical test of the panel data of2011-2016 years.The gap between regions also causes distortion of the supply structure of public goods.On this basis,it puts forward some suggestions,such as regulating government functions,adjusting the structure of government expenditure,reforming transfer payment mechanism,and scientifically dividing financial rights and powers.The innovation point of this paper is to use factor analysis method to extract the factors that affect the intergovernmental financial strategy,classify the factors according to the value of the value and make the list of the factor scores after the classification and the affiliated regions.The SPSS software is used to output the contingency table,and the priority of the choice of the strategy interaction in the competition of the local government financial expenditure is given priority.It is the supply level of public services in the economic system.The Eviews software is used to test the panel data by the least square method.The model has been penetrated into various provinces or regions of China,and the relationship between the supply of public products and the FDI is analyzed in a comprehensive way.