Fiscal Decentralization And Tibet’s Economic Growth

The financial system below the provincial level is an integral part of the intergovernmental fiscal relations system,and improving the local fiscal decentralization system is conducive to optimizing the allocation of local resources,mobilizing the enthusiasm of local governments,and promoting economic growth.China’s definition of local fiscal decentralization mainly refers to the financial decentralization of governments at all levels below the provincial level,which includes the four levels of provinces,cities,counties and townships,and its financial decentralization system is unique.The Fifth Plenary Session of the 19 th CPC Central Committee proposed to clarify the basis for the division of fiscal powers and expenditure responsibilities below the provincial level on improving the financial system below the provincial level,straighten out the relationship between the revenue of the provincial government,and deeply explore the relationship between fiscal decentralization and economic growth below the provincial level,which is of great significance for improving and implementing the financial system below the provincial level and promoting local economic growth.Since the beginning of reform and opening up,the central authorities have paid great attention to the economic construction of the Tibet Autonomous Region,and seven Tibet work forums have been devoted to studying the issue of Tibet’s economic development.Based on the perspective of the financial system below the provincial level,this paper studies the relationship between fiscal decentralization and Tibet’s economic growth,which is not only of great practical significance for Tibet’s local economic development,but also conducive to ethnic unity and has a reference effect on the development of other ethnic areas.This paper mainly adopts the literature analysis method,the combination of qualitative and quantitative research,and the combination of theoretical and empirical analysis.Firstly,the development context of economic growth theory and fiscal decentralization theory is sorted out,and the mechanism of fiscal decentralization on economic growth is further analyzed,that is,the two mechanisms of resource allocation effect and institutional environment effect.Through the analysis of the current situation,Tibet’s economic growth,Tibet’s fiscal revenue and expenditure,Tibet’s fiscal decentralization and existing problems are analyzed,it is pointed out that the fiscal decentralization system below the Tibet Autonomous Region is not perfect,the division of fiscal power and expenditure responsibilities is not clear,and the transfer payments from governments below the Tibet Autonomous Region level are not in place,which has led to financial difficulties for governments below the Tibet Autonomous Region,especially at the county level.Then,based on the theoretical analysis and analysis of Tibet’s economic growth and the current situation of fiscal decentralization of governments below the level of the Tibet Autonomous Region,combined with the model indicators of relevant literature,this paper constructs three indicators to measure the level of fiscal decentralization at the city(county)level,namely,the decentralization of fiscal revenue at the city(county)level,the decentralization of fiscal expenditure at the city(county)level,and the financial self-sufficiency at the city(county)level.The economic growth rate was taken as the explanatory variable,and the three fiscal decentralization indicators,investment growth rate,labor growth rate,education growth rate and industrialization rate were used as explanatory variables.Eviews10 was used to analyze the regression data of the city(county)level panel,and the model regression was divided into two steps,the first step was to directly model and analyze the economic growth rate and three indicators measuring the level of fiscal decentralization at the city(county)level without considering the control variables;Step 2 is to add control variables of investment growth rate,labor growth rate,education growth rate and industrialization rate according to step 1 for model analysis.After analysis,the panel model regression results show that the decentralization of fiscal expenditure and fiscal self-sufficiency below the Tibet Autonomous Region play a significant role in promoting local economic growth,indicating that the scientific and reasonable fiscal decentralization system has a role in promoting economic growth,but there are still problems at the city and county level such as insufficient government financial resources,unclear division of power expenditure responsibilities at the county level,and inadequate implementation of the transfer payment system below the district level.Rationalize the revenue relationship between governments at all levels and improve local fiscal self-sufficiency;Improve the transfer payment system and standardize the management of fiscal funds;Policy suggestions such as cultivating endogenous driving force of Tibet’s economy to promote the high-quality development of Tibet’s economy.