Research On The Influence Of China’s Vertical Fiscal Imbalance On The Upgrading Of Industrial Structure

During the 14th Five-Year Plan period,the upgrading of China’s industrial structure is still facing a severe situation.The realization of its upgrading goal depends on the coordinated efforts of the effective government and the effective market,but also limited by the financial system.In contrast,the vertical fiscal imbalance in the current financial system is relatively prominent,and it is obviously unwise to ignore the impact of vertical fiscal imbalance on the upgrading of industrial structure,therefore,this thesis focuses on the direct and indirect impact of China’s vertical fiscal imbalance on industrial structure upgrading and its regional heterogeneity.This study collects relevant data of 30 regions in China from 2007 to2019,focusing on measuring the indicators of vertical fiscal imbalance and industrial structure upgrading,and introduces government innovation preference and marketization process as intermediary variables,theoretically analyzes and empirically tests the effect mechanism of vertical fiscal imbalance on industrial structure upgrading.At the same time,the region is divided into east,middle and west regions,coastal and inland regions,as well as high imbalance and low imbalance regions according to different criteria in order to enrich the study of regional heterogeneity.The research conclusions are as follows:(1)China’s vertical fiscal imbalance has a significant inhibitory effect on the upgrading of industrial structure.Government innovation preference and marketization process have partial mediating effects on the relationship between the vertical fiscal imbalance and the upgrading of industrial structure.Moreover,the mediating effect of marketization process is greater than government innovation preference.(2)The results of regional heterogeneity show that the inhibition degree of vertical fiscal imbalance on industrial structure upgrading is greater in the western region than in the central region,and the central region than in the eastern region,the inland area is larger than the coastal area,the areas with high imbalance were larger than those with low imbalance.Government innovation preference has a mediating effect in the eastern and central regions,coastal regions and low imbalance regions,while there is no mediating effect in the western regions,inland regions and high imbalance regions.Marketization process has complete mediating effect in eastern region,coastal region and low imbalance region,partial mediating effect in central region,inland region and high imbalance region,and no mediating effect in western region.