Research On The Impact Of Fiscal Decentralization And Upgrading Of Industrial Structure On Economic Growth

The arrival of the new normal economy means that China's economic growth rate has shifted from high-speed to medium-high speed.At the same time,the issue of"structural decelerating" has received particular attention.Some scholars attribute the main reason of "structural decelerating" to the rising proportion of the tertiary industry in the process of industrial structure upgrading,and believe that the lower productivity of the tertiary industry than the secondary industry may cause the economic growth rate to decline.However,judging from the historical development experience of various countries' economies,the upgrading of industrial structure is the only way to achieve national economic transformation and upgrading.Therefore,China insists on upgrading the industrial structure in an important strategic position.In order to speed up the transformation and upgrading of the industrlial structure,China has carried out a series of structural reforms to clear up the institutional obstacles in the process of upgrading the industrial structure.Among them,the reform of the fiscal decentralization systerm is particularly critical.Based on the above background,this paper attempts to solve two problems:(1)Whether there is a"structural decelerating" problem caused by the upgrading of industrial structure in China.(2)Whether the reform of the fiscal decentralization system can strengthen the role of the upgrading of the industrial structure in promoting economic growth,thereby alleviating the "structural decelerating" problem,and what is the difference in this role in different economically developed regions.It should be pointed out that the second study is also the biggest feature of this article.Different from previous studies of the same kind,this paper attempts to link fiscal decentralization,industrial structure upgrading,and economic growth to a more systematic discussion:theoretically,first analyze the mechanism of each of the fiscal decentralization and industrial structure upgrade on economic growth,and then It focuses on the regulatory effect of fiscal decentralization on the impact of industrial restructuring on economic growth.In analyzing the above-mentioned impact mechanisms,this paper not only has an overall analysis at the national level,but also has a differentiated analysis in different economically developed areas.Empirically,based on the Chinese provincial panel data from 2001 to 2015,this paper empirically tests theoretical hypotheses using panel quantile regression models and traditional mean-regression models,among them,the former can examine the effects of various mechanisms in different developed regions,the latter can analyze the role of each impact mechanism from the whole country.Both the theoretical analysis and the empirical analysis of this paper show that:(1)Both fiscal decentralization and upgrading of industrial structure have a significant role in promoting economic growth.The difference is that the economic growth effect of fiscal decentralization increases with the improvement of regional development.The economic growth effect of upgrading the industrial structure has weakened with the development of the region;according to previous relevant research findings and experience,the more economically developed regions,the progress of the industrial structure upgrade is often more advanced,which reflects the fact that there is indeed a structural decelerating in the upgrading of industrial structure at this stage.In addition,since there are relatively few empirical literatures on the phenomenon of "structural decelerating" in verification,the empirical analysis in this paper will help enrich the research on such issues.(2)Fiscal decentralization can significantly promote economic growth through intrinsic linkages with the upgrading of the industrial structure,thus enhancing the role of industrial structure upgrading in promoting economic growth,and its effectiveness will increase with the development of the region.Based on this,this paper answers the question of whether "fiscal decentralization can strengthen the role of industrial upgrading in promoting economic growth and how different the role of economic development is in different regions" combined with theoretical analysis and empirical analysis,and enriched the research on"structural decelerating".