The Impact Of Economic Growth On Fiscal Decentralization And Industrial Structure Optimization

Since the founding of New China,China' s economic growth has been rapid,which has led many scholars to explore the "growth miracle" of the Chinese economy.The development of China's economic growth is inseparable from the economic situation of industrial structure development in various regions,and is closely related to relevant policy interventions implemented by local governments.Since the reform and opening up,China has implemented different relevant policies in different development periods,which have different effects on China's economic growth.Among them,the impact of fiscal decentralization on economic growth is particularly important.The fiscal decentralization system gives local governments more autonomy and incentives for them,which is conducive to the improvement of resource allocation efficiency and thus promote economic growth.However,China,s economic growth has slowed down in recent years,and structural problems have become increasingly obstructive to economic growth.Therefore,industrial restructuring has gradually become an effective way to optimize resource allocation and promote economic growth.On the one hand,the implementation of the fiscal system has a guiding role in regional resource allocation.By effectively promoting the allocation of factors among different industries,it further promotes the optimization and adjustment of industrial structure in each region,which has a positive effect on economic growth;Fiscal decentralization makes local governments have more rights and affects the fiscal abundance of various regions.Unreasonable government intervention will intensify the degree of market failure,lose the status of independent innovation among regions,and hinder the process of industrial transformation,leading to inter-regional economy.The development gap has gradually expanded and has a negative impact on economic growth.Therefore,this paper explores the relationship between regional industrial structure and economic growth from the perspective of fiscal decentralization research.The article uses the panel data of China's 30 provinces and cities(excluding Tibet)from 1997 to 2017,and uses the system GMM estimation method and threshold model to conduct empirical research,and obtains the following conclusions:(1)fiscal decentralization and economic growth are "reverse U"(type)relationship;(2)fiscal decentralization and industrial structure optimization of the economic growth effect of the cross-term is significantly positive;(3)the mutual matching between fiscal decentralization and industrial structure optimization will affect regional economic growth.In order to better promote the sustained and stable development of China,s economy,based on the conclusions obtained from the empirical evidence,this paper proposes relevant policy recommendations:(1)the regional fiscal decentralization intensity should be adapted to local conditions;(2)fiscal decentralization and industrial structure optimization match each other,Coordinated development;(3)Pay attention to changes in population structure and actively introduce high-quality talents;(4)Strengthen policy implementation of education,fixed asset investment and trade openness.