The Influnce Of Transfer Payment On The Income In Minority Concentrated Region

Because of the history and special geographical position of the western region,its economy has been behind of the eastern region.However,the western region,as a habitation of ethnic minorities in China,and its geographical location connecting China and the Central Asian countries,China has been strongly supporting the economic development of the western region,and various policies are inclined to the western region.One of them is the amount of transfer payments that have been paid.However,some scholars pointed out that due to various internal and external factors in the implementation process,transfer payments did not reach the original intention of transfer payments,and even played the opposite role?Flatter,1974;Ma shuanyou,2003;Cao Junwen,2006?^[1][2][3].Based on the existing researches,this paper studies the impact of the central transfer payment on the income of ethnic provinces through the establishment of two-stage least square method,VAR model,and threshold model.This paper finds that:?1?For ethnic areas,when the scale of transfer payment is in a reasonable range,the transfer payment has a stimulating effect on the actual GDP per capital,but when the transfer payment accounts for a large proportion of the financial income,it is not conducive to the growth of the actual per capital GDP in the ethnic areas.?2?In the long run,the effect of transfer payment on the actual GDP of minority areas has gradually weakened,and even hindered the growth of GDP per capital in the late stage.In other areas,transfer payments have no significant effect on economic growth in non-ethnic areas.?3?In ethnic provinces,with the increasing ratio of net transfer payment to fiscal revenue,its effect on the income gap between urban and rural areas is reduced to no impact.When the ratio is over 1.4933,the income gap between urban and rural areas may be widened.In other areas,the ratio of transfer payments to fiscal revenues,regardless of the value,has widened the urban-rural income gap.Therefore,the following policy suggestions are put forward:first,the central government,makes the corresponding transfer payment system and controls the scale of transfer payment in accordance with the power and responsibility of local governments in ethnic areas,to avoid the excessive dependence on the transfer payment,and to reduce the independence of the local development economy.Secondly,we should establish a standardized and scientific transfer payment system,so as to make the distribution process of transfer payment public and transparent,and standardize the implementation process of transfer payment policy.Thirdly,a unique transfer payment system in ethnic areas should be established.Finally,Improve the current performance evaluation mechanism.