The Impact Of County Administrated By Province Reform On Counties’ Economic Performance And People’s Livelihood

A country’s fiscal system includes essential contents such as various relations between the central and local governments,between government and market,between government and society,which plays institutional,basic and security role.However,the insufficiency of Chinese fiscal system transition,especially after the system of tax distribution,has affected the Chinese county development both in economy and society.Such inefficiency mainly refers to the fiscal revenue and expenditure asymmetric between Chinese sub-national governments generated by the Chinese pressure-style decentralization and unreasonable tax distribution system below provincial level.Besides,the “municipally affiliated county”system also inhibits the Chinese county development to a large extent.Based on this,the research takes the County Administrated by Province reform as the main content.Meanwhile,the research also takes the County Administrated by Province reform as the core to study the effects of this reform on county economy and people’s livelihood.The current research focuses more on the direct effects of the reform,however have ignored the empirical study of the reform’s mechanism as well as the classification study based on counties’ adaptability.Therefore,the research analyzes the regulate mechanism of the reform from a perspective of Chinese decentralization.At the same time,the research also presents and verifies the hypothesis that the reform results will depend on the pilot counties’ economy development,fiscal capacity and geographical position.The main conclusions are as following:(1)Based on the understandings of the reform background,practices,contents and county position,the research builds up a theoretical analysis framework to examine the county financial pressure.According to the specific measures of the County Administrated by Province reform,this research defies the meaning of fiscal revenue decentralization and the fiscal expenditure decentralization.Combing the particular performances of fiscal pressure on county level,it can be seen that the fiscal decentralization has largely influenced the Chinese county finance.Especially under the background of pressure-style decentralization and official promotion tournament,the power expansion to county levels will definite brings the significant changes to county economy growth and expenditure structure.Therefore,in order to fully bring out the system performance,it is necessary to break through the original system and promote the position of county finance.Meanwhile,it is also necessary to establish the real tax distribution system below provincial level.(2)The research also explores the impact of the County Administrated by Province reform on county economy sufficiency and people’s livelihood as well as its impact mechanism.Firstly,based on previous article reviews and theoretical analyzes,the researchbuild the quantitative model to examine reform impact on county development and how the reform works based upon the Sichuan economic and social data.Results of the fixed effects model and DID(difference in difference)model both reveal: County Administrated by Province reform in Sichuan shows the improvement on Sichuan county economy and people’s livelihood generally;the implements on system of tax distribution are useful for the proportion increase of the people’s livelihood finance,the breakthrough of the city governing county system are helpful for the county economy sufficiency.(3)The research found the impact of the County Administrated by Province reform has significant differences among the different type of counties.Firstly,through the article reviews and theoretical analyzes,this research constructs an analytical framework.This framework considers the specific characteristic of different counties.Then,based upon the economic and social data in Sichuan and constraints of the reform,the research further examines the study across different type of counties.Results of the fixed effects model and DID(difference in difference)model both reveal: the impacts of the reform has shown large differences among different types of counties in Sichuan.In conclusion,the research reveals the impacts of Sichuan County Administrated by Province reform on its economy and society,the reform mechanism as well as the reform constraints through systematic and deep study.Furthermore,the research brings powerful advices for the reform.The advices mainly concerns how to build the vertical governance structure that takes the central government as the designer,the provincial government as the guider,the city government as the balancer and the county governments as the benefiter.