Study On Regional Differences Of Fiscal Policy Effects

The fiscal policy is an important measure for moderating economic fluctuation,and an effectual economic policy to promote the harmonious growth of the regional economy.Since the 1970 s,China has begun to reform and open up its economic system.It has adopted a step-by-step policy approach and a non-balanced development strategy of "allowing some people to get rich first".This practice has resulted in a serious regional imbalance in the rapid development of China's economy,which is mainly manifested in the economic development of Eastern China and other regions.The difference is too large.Under the current framework of fiscal decentralization in China,there are distinct economic characteristics in all regions.The use of the same fiscal policy will inevitably not meet the needs of economic development in all regions.Moderate economic disparities can form economic disparities,promote the development of backward regions,and benefit the allocation of resources and the economic development of the whole country.However,the regional economic disparities in China have gone beyond the scope of moderation.Excessive regional disparities not only affect people's welfare,but also may cause serious social problems.Therefore,the regional disparities of fiscal policy effects have become our economy.Economists in recent years focus on one of the topics.This paper divides the whole country into the eastern,central,western and northeastern.The structural vector autoregressive model(SVAR model)and the structural impulse response function are established by choosing the national fiscal revenue(mainly tax revenue),the national fiscal expenditure and the GDP of the four economic regions from 1992 to 2017.The analysis shows that there are obvious regional differences in the effect of fiscal policy in China,and the variance score is used.It is further found that the difference in the implementation effect of fiscal policy instruments is one of the reasons for the regional effects of fiscal policy.Based on the actual situation of China's development,this paper sums up the reasons for the regional effects of China's fiscal policy,including the imbalance of regional economic development in the four regions of East,Central,West and Northeast,and the defects of financial policy instruments themselves,mainly due to the unreasonable tax policy and the irregular transfer payment systemBased on the experience of Germany,the United States and the United Kingdom in improving the regional effects of fiscal policy,this paper puts forward the following policy suggestions for the application of fiscal policy in China.Firstly,overall control of fiscal policy should be carried out.It includes the implementation of differentiated fiscal policy based on the reality of unbalanced regional economic development,reasonable grasp of fiscal policy intervention,timing of adjustment and exit,and effective integration to ensure the support effect of fiscal policy.The second is to optimize the structure of tax system and change the form of tax preferences.Third,standardize the transfer payment system.It includes standardizing the distribution mode of transfer payment system,increasing the horizontal transfer payment mode,reasonably determining the government's power and financial power,and establishing and perfecting the financial legal system.