Fiscal Decentralization, Financial Decentralization And Regional Economic Growth

Since the reform and opening up,China's economy has maintained a high-speed growth of 40 years.From the perspective of driving factors,the unique Chinese-style economic decentralization has become a core factor driving economic growth.Economic decentralization is mainly reflected in two aspects: fiscal decentralization and financial decentralization.This paper mainly analyzes the impact of fiscal decentralization and financial decentralization on the local economy.This paper uses the panel data of 280 prefecture-level cities in China from 2003 to 2016 for spatial analysis and testing.This paper proposes the relevance of fiscal decentralization and financial decentralization on economic growth,on the basis of review and summarize relevant literature on fiscal decentralization and decentralization by analyzing the role of finance in the mechanism of economic growth.The evolutionary logic and stage characteristics of financial decentralization,sorting out the internal relationship between the three.Then,the spatial factor is introduced to conduct a spatial exploratory analysis of the typical facts of fiscal decentralization and financial decentralization.The research hypothesis proposed in this paper is tested by constructing a spatial econometric model of fiscal decentralization and financial decentralization and local economic growth.Finally,the study summarizes and proposes policy recommendations for optimizing central-local,government-market fiscal decentralization and financial decentralization.This paper has the following findings: On the whole,China's fiscal decentralization and financial decentralization levels are relatively low,and it presents a gradient pattern that gradually decreases from the east to the central and western regions.Spatial exploratory analysis shows that China's fiscal decentralization and financial decentralization have relatively obvious spatial agglomeration characteristics.The economic belts in the southeastern coastal areas of China and the three northeastern provinces are mainly characterized by fiscal decentralization and financial decentralization.Mode,the central and eastern regions of North China,South China,and East China are the “low-low” aggregation model of fiscal decentralization and financial decentralization.The results of spatial econometric model show that the regression result coefficients of fiscal decentralization and financial decentralization are positive,the regression result coefficient of the lag item of fiscal decentralization space is positive,and the regression result coefficient of the lag item of financial decentralization space is negative.This shows that the fiscal decentralization of local and neighboring countries is conducive to local economic growth,local financial decentralization is conducive to local economic growth,and the financial decentralization of neighbourhood is not conducive to local economic growth.In response to the above conclusions,this paper proposes policy recommendations to strengthen regional exchanges of finance and finance,and promote fiscal and financial integration.