Research On The Effect Of Local Fiscal Governance Capacity On In-situ Urbanization

The rapid development of traditional long-distance urbanization not only stimulates the economy,but also causes many problems in urban and rural areas,hindering the harmonious and orderly development of urban and rural areas.However,the first development of local urbanization in the eastern coastal areas of China not only made the economic,social and geographical landscape of rural areas transform into cities,but also alleviated and avoided the disadvantages brought by traditional urbanization.Therefore,local urbanization should be included as part of China's urbanization system,and local urbanization should be actively developed in regions with foundation and conditions according to local conditions.Therefore,local governments should give full play to their fiscal functions and play a leading role in local urbanization.In addition,the development of economy and society requires that finance is not confined to the traditional economic category,but to national governance.Therefore,it is of great theoretical and practical significance for the development of China's urbanization to determine the impact of local financial governance on local urbanization.Based on this,this paper constructs an index system and calculates the local financial governance capacity and local urbanization rate of Chinese provinces respectively by using the entropy method,conducts research on the new positioning of local finance and its role in local urbanization,and then tests and draws conclusions by empirical method.The results show that in the recent decade,the local fiscal governance capacity has a significant positive effect on the local urbanization,and the effect on the three economic belts of east,middle and west of China is different,among which the central part is the largest and the western part is the smallest.In the empirical test of the three subsystems of local financial governance: financial capability subsystem,social governance capability subsystem,and risk governance capability subsystem,it is found that the subsystems of financial capability and social governance capability have a greater impact on local urbanization.Finally,from the perspective of local fiscal governance,this paper puts forward some policy Suggestions for the development of China's local urbanization,such as giving play to the foundation and pillar role of fiscal governance,improving the local tax system,adjusting the fiscal relationship between central and local governments,persisting in the reform of performance-based budgeting,and developing local urbanization according to local conditions.