An Empirical Study On The Allocation Of Financial Resources In China's Provinces Under The Fiscal Decentralization

Firstly,by drawing on the existing theory and practice at home and abroad,this paper analyzes financial resources and financial resource allocation efficiency.Secondly,according to the chosen efficiency evaluation method DEA model and SEDEA model,it uses data from 1994-2011 to assess the financial resource allocation efficiency of different areas of China,and to make comparative analysis of different provinces and regions.This analysis shows that the overall efficiency increases steadily,and the eastern provinces have higher efficiency while the northeast areas have lower efficiency.Then,derived from the financial development disparity of China's individual parts,this paper statess three central tasks that may influence regional financial resource allocation efficiency:economic growth,industrial structure and government intervention.It analyzes the general theory mechanism of each factors of its influence upon the efficiency,and uses TOBIT regression model to examine these factors.Lastly,this paper puts forward some policy recommendations.This paper is divided into four parts.The first part is the introduction,which illustrates the increasing development and intense competition in Chinese finance industry.When economy has developed to a certain extent,the increase of the total amount alone can not meet the need of economic development,thus,financial inefficiency will become a bottleneck for economic development.In order to optimize financial resource allocation and increase the allocation efficiency,we must inspect financial resource allocation within the financial system reform.Then it retrospect articles which study theory of financial resources at home and abroad,and introduces the research method.The second part is the research on related theory of financial resources allocation and the method of how to increase allocation efficiency.Firstly,it generally introduces the decisive influence of the market economy.Then it proposes the content of financial resources according to the well-known financial expert Professor Bai Qinxian's viewpoint.It also studies the body,form and characteristics of financial resource allocation.Thirdly,it explores methods to measure the efficiency of regional financial resource allocation.The third part of the paper analyzes those factors which influence efficiency of financial resource allocation,respectively from the macroeconomic factors(such as national macro-economic environment,social environment)and micro factors(such as industry structure,industry innovation,market competition,technology and scale)to explore their effects on the allocation efficiency.Then analyzing its influence mechanism through constructing TOBIT model.The fourth part is to make some policy suggestions on how to increase allocation efficiency of financial resources.Based on the current situation of the development of financial resource allocation and the disparities among different regions,this paper suggests to make accurate strategic positioning,formulate scientific development strategy,and focus on the important areas.