Research On The Impact Of Fiscal Decentralization On The Marketization Of Credit Fund Distribution

In 2022,the CPC Central Committee and the State Council issued the "Opinions on Accelerating the Construction of a Unified National Market," which emphasized the importance of the construction of a unified factor and resource market for China’s high-quality economic development.In 2021,the General Office of the State Council issued the "Overall Plan for the Comprehensive Reform Pilot of Factor Marketization Allocation," which clearly regards factor marketization allocation as a comprehensive reform and promotes the reform to develop in depth.Therefore,how to accurately grasp and promote the marketization of factor allocation has become a problem worthy of discussion.As one of the key points of market-oriented allocation of factors,the marketization of credit fund allocation is related to the high-quality development of China’s economy,the prevention and control of financial risks and the structural reform of financial supply side.It is an inevitable trend for market forces to determine the allocation of credit funds.The current fiscal decentralization system makes the local government financial power and powers do not match,local government financial pressure.In this financial background,taking into account the performance evaluation mechanism and the needs of economic development,local governments may use administrative status to intervene in the allocation of financial resources,borrowing,etc.,squeezing the credit resources of enterprises and easily causing financial resources.Misallocation hinders the improvement of the efficiency of credit fund allocation.Based on this,it is of great significance to study the impact of fiscal decentralization on the market-oriented development of credit fund distribution under the tax-sharing system,which is of great significance for building a modern financial system and promoting the market-oriented allocation of factors,and can provide some reference for the formulation of fiscal policy.Based on the reform of fiscal decentralization system and the marketization of factor allocation,this paper focuses on the analysis of the impact of fiscal decentralization on the marketization of credit fund allocation by studying relevant literature at home and abroad and adopting various research methods.The main contents include:(1)Introduction.Explain the research background,and review and sort out the domestic and foreign literature on the fiscal decentralization system and the marketization of credit fund distribution,and lead to the purpose,significance and research methods of studying the impact of fiscal decentralization on the marketization of credit fund distribution.(2)Related concept definition and theoretical analysis.Define the concept of fiscal decentralization and credit fund distribution marketization;explain the theory of fiscal decentralization,credit allocation theory and credit fund allocation efficiency theory;based on the above theory,this paper discusses the theoretical mechanism of fiscal decentralization affecting the market-oriented development of credit fund distribution,and puts forward the hypothesis of this paper.(3)Analysis of the current situation of credit funds allocation marketization and fiscal decentralization.Analyze the data of marketization and fiscal decentralization of provincial credit fund distribution from2012 to 2019,and study the changing trend.(4)Empirical research.The proxy indicators of variables such as the degree of fiscal decentralization and the marketization of credit fund distribution are selected,and the two-way fixed effect model is used for empirical research;The robustness test and endogenous test of the empirical results;finally,regional heterogeneity analysis.(5)Research conclusions and policy recommendations.This paper expounds the research conclusions of this paper,and puts forward policy suggestions to promote the market-oriented development of credit fund distribution from the aspects of fiscal decentralization system,market laws and regulations and financial system construction.The conclusions of this paper show that:(1)The deepening of fiscal decentralization has a significant positive effect on the marketization of credit fund distribution.(2)There is regional heterogeneity in the effect of fiscal decentralization on the marketization of credit funds allocation.Compared with the eastern region,the deepening of fiscal decentralization has a stronger role in promoting the marketization of credit fund distribution in the western region;for the central region,the impact of fiscal decentralization on the marketization of credit fund distribution is not significant.According to the conclusions of this paper,the following policy recommendations are put forward:(1)Gradually improve the fiscal decentralization system between the central government and local governments.(2)Improve factor market governance(3)Continue to promote financial system reform.