Analysis On The Effect Of Financial Equalization Of Transfer Payment In Guangdong Province

Since the reform and opening up,China's economic development has achieved world-renowned achievements,the growth of GDP has achieved a qualitative leap.China's GDP has increased from 364.5 billion yuan in 1978 to 90.03 trillion yuan in 2018.But at the same time of making miracle,performance in the field of basic public services is poor,financial resources between regions and between urban and rural areas have not been equalized.China's reform and opening up has brought rapid economic growth,but it has not achieved good results in narrowing the financial gap at the same time.As a province with a super total GDP,Guangdong's economic and social development is extremely unbalanced,Shenzhen and Guangzhou leading the way in terms of GDP,but the per capita GDP in the eastern and western regions and the mountainous areas far below the national average,forming a sharp contrast in economic and social development.The imbalance of economic development is an important factor in the imbalance of the fiscal revenue of the local governments,which can not guarantee that the local governments have the financial resources to provide basic public services for the residents in the area.Therefore,the transfer of payment funds has become a direct means to make up the fiscal expenditure gap of the local governments and balance the regional financial resources.However,in practice,the delay of transfer payment will lead to the long-term expression of financial effect.Local governments' moral hazard behaviors such as "income effect" and "self-interest" motivation further enhance the dependence of local finance.In the long run,transfer payment will fall into a vicious circle,and there is still a gap between the balance effect of financial redistribution and the theoretical effect.This paper takes four regions of Guangdong Province as the research object,selects several financial indicators to investigate the city level,analyzes the current situation and causes of the financial gap,studies the degree of equalization of fiscal transfer payment under the condition of obvious regional economic gap,and puts forward suggestions to reduce the regional financial gap.This paper is divided into five chapters.The structure of the article is as follows: The first chapter mainly introduces the background of the topic and the significance of the research,summarizes the research literature of transfer payment at home and abroad,and points out the innovation and shortcomings of this paper.The second chapter mainly introduces the current situation of regional financial gap in Guangdong Province,the implementation of transfer payment system and the comparison of regional financial gap before and after transfer payment,and analyzes the reasons of regional financial imbalance in Guangdong Province.The third chapter discusses the transmission mechanism of Gini coefficient path curve of transfer payment on the basis of theoretical analysis.The fourth chapter uses MT index method,Gini coefficient method and financial equalization model to measure the equalization effect of different forms of transfer payment in different regions.The fifth chapter puts forward some suggestions to reduce the financial gap between regions.The research conclusions of this paper are as follows: firstly,different forms of transfer payment have different effects on financial equalization in different regions.MT index and Gini coefficient show that the Gini coefficient of Guangdong Province after transfer payment is close to 0.3,and the financial distribution of the region is relatively equal.By further measuring the equalization effect of different forms of transfer payment,we can see that the financial resources in the Pearl River Delta region have been transferred to non Pearl River Delta region.General transfer payment has a positive regulatory effect on narrowing the financial gap between regions and within regions,but there is obvious regional heterogeneity in this positive promoting effect.The equalization effect in the Pearl River Delta is optimistic,followed by the equalization effect in the west wing and the mountain area,and the equalization effect in the East Wing area is negative;special transfer payment in the sample of the whole province,the Pearl River Delta,the east wing and the mountain area It has played an internal balancing effect,and played a reverse regulatory role in the west wing;tax return has obviously played a role in restraining the narrowing of the financial gap in the whole province and the Pearl River Delta.Second,the strategic measures of Guangdong Province to comprehensively revitalize the East,the West and the northwest improved the regional financial gap to a certain extent in 2008-2018,while the revitalization of the East,the West and the North mainly played a role through special transfer payments.In 2014-2018,the scale of general transfer payments gradually increased in the non Pearl River Delta region,so the general transfer payments significantly reduced the regional gap;special transfer Payment also plays a certain financial balance effect,but in the process of revitalization,the effect of reducing the balance through a large number of special funds is not obvious;tax return still plays a role in widening the financial gap.Therefore,according to the empirical conclusion of this paper,it puts forward the policy suggestions to speed up the local economic development,improve the local government's tax effort,improve the current transfer payment system below the provincial level,and establish an effective incentive and restraint mechanism to narrow the regional gap.