Research On The Influence Of China's Financial Expenditure On The Income Distribution Of Residents In Dual Economic Structure

With the imbalance of regional economic development,the problem of uneven distribution of financial resources between regions has become more prominent.The gap in financial capacity between urban and rural areas,developed regions and underdeveloped regions is expanding,especially in public service capacity.Which has a certain impact on the income distribution of residents.How to avoid fiscal expenditures to expand the imbalance between economic development in urban and rural areas and between regions,as well as the income distribution gap among residents,so that the people can fully enjoy the fruits of economic growth is an important issue that China urgently needs to solve in the new eraThe first and second chapters of this paper theoretically analyze the mechanism of fiscal expenditure on the income distribution of residents through the study of related literature.The third chapter of this paper uses macro and microeconomic data to analyze the current situation of China's fiscal expenditure and income distribution of urban and rural residents,as well as the current situation of fiscal expenditure and regional residents5 income distribution.The four chapters of this paper use macro and micro data to construct econometric models respectively,and explore the impact of fiscal expenditure on residents' income distribution.The empirical results show that fiscal expenditures have widened the income gap between urban and rural residents.From the empirical results of macro data,the increase in fiscal expenditure will widen the income gap between urban and rural areas.The reason is that local governments have long focused on“efficiency”and neglected"fairness",which has used more financial resources for economic construction,which in turn led to the income gap between urban and rural areas is growing.From the empirical results of microdata,per capita fiscal expenditure has a significant positive effect on residents'income,but fiscal expenditure has different effects on rural residents in underdeveloped areas,urban residents in underdeveloped areas,rural residents in developed areas,and urban residents in developed regions.The results show that China's fiscal expenditure has widened the income gap between urban and rural residents,as well as the residents in the region,which ultimately led to an imbalance in economic development.On the one hand,China's fiscal expenditure still has an“urbanization”bias,and it has invested heavily in infrastructure and public services in urban areas,and has less investment in rural areas,thus leading to an increase in the income gap between urban and rural residents.On the other hand,because of the differences in fiscal revenues between regions,there are also differences in the supply of public goods and public services between regions,which further affects the income gap of Chinese residents.Finally,based on theoretical and empirical findings,The fifth chapter of this paper proposes to optimize the structure of fiscal expenditure,realize the integration of urban and rural infrastructure and public services,improve the social security system,promote the development of rural economy,and increase the transfer payments to underdeveloped regions.