Influence Of Fiscal Decentralization And Fiscal Science And Technology Expenditure On Local Technological Innovation

With the policy propositions such as "innovation is the first driving force for development",China has placed "innovation" in the strategic level of the national development process.In the reform of economic system,the Chinese fiscal system has experienced a change.As the reform of "tax distribution system" began in 1994,the Chinese fiscal decentralization system has gradually come into being.Under the fiscal decentralization system,domestic and foreign scholars have conducted extensive research on whether the behaviors of local governments are conducive to promoting local technological innovation and further promoting local economic growth.At present,domestic and foreign scholars have different views on whether the fiscal decentralization system promotes local technological innovation.Some scholars believe that residents’ "voting with their feet" is conducive to promoting local technological innovation,while some scholars hold the opposite view.In addition,there is a lack of extensive research on whether the fiscal decentralization system is conducive to increasing the local fiscal science and technology expenditure and promoting local technological innovation.These existing research deficiencies provide research space for this thesis,the research in this thesis will help to make up for the shortcomings of the existing research academically and provide theoretical basis for the policy making of how the central government guides the local government and how the local government promotes local technological innovation in practice.This thesis carries study from the perspective of macro economy and government policies.On the basis of theoretical analysis,this thesis establishes econometric models to test whether fiscal decentralization system promotes local technological innovation,which is one of the research characteristics of this thesis.This thesis introduces the mediation effect model to test whether the fiscal decentralization system is conducive to increasing the local fiscal science and technology expenditure and thus promoting the local technological innovation,which is another innovation in this thesis.At the same time,China is divided into three regions in the thesis,including the eastern region,the central region and the western region,this thesis analyzes the differences of how the fiscal decentralization affects the local technological innovation through the fiscal science and technology expenditure.This thesis finds that:(1)Fiscal decentralization promotes local technological innovation by improving local governments’ independent decision-making power within a certain range;By region,the fiscal decentralization in the eastern and western regions has a significant positive incentive effect on local technological innovation,but the fiscal decentralization in the central region has no significant effect on local technological innovation.(2)Fiscal decentralization is conducive to the increase of fiscal science and technology expenditure,which has a positive incentive for local technological innovation;By region,only the eastern region was broadly consistent with the national results,the results of fiscal decentralization in the central region has no significant impact on technological innovation,while fiscal decentralization in the western region has a crowding out effect on the fiscal science and technology expenditure.(3)Fiscal decentralization not only indirectly affects the level of local technological innovation through the mediation variable of the fiscal science and technology expenditure,but also directly affects the development of local technological innovation;At the regional level,the fiscal science and technology expenditure in the eastern and western regions plays a partial mediation role,while the the fiscal science and technology expenditure in the central region has no mediation role.Finally,on the basis of the empirical conclusions,the thesis puts forward some countermeasures and suggestions for local government to promote local technological innovation under the fiscal decentralization system.