Research On The Influences Of Fiscal Decentralization On Economic Growth And Residents' Health In China

Health is the basic condition to measure the level of a country's economic and social development,and is also an important symbol to evaluate the national prosperity and national prosperity.At present,socialism with Chinese characteristics has entered a new era.To realize the great rejuvenation of the Chinese nation and meet the people's yearning for a better life,the governments not only need to develop the economy,but also need to constantly improve the health level of the residents.Among them,the government must play the role of "visible hand" and allocate resources which cannot be independent of the system,and fiscal decentralization is considered as a very important institutional factor.Therefore,the research focus of this paper is to explore the relationships between fiscal decentralization and residents' health and economic growth.Issues related to fiscal decentralization have always been the focus of academic attention.On the one hand,most of the existing literature on the effect of fiscal decentralization on economic growth is based on the linear relationship between the two to carry out relevant empirical research,while the theoretical model research is relatively small.Moreover,most of previous studies focus on the perspective of total economic growth,ignoring the cross sector heterogeneity effect of fiscal decentralization.On the other hand,most of the existing literature on the influence of fiscal decentralization on residents'health focus on empirical research in foreign countries,while empirical research in China is relatively small,and theoretical model research is relatively short.Meanwhile,the only existing empirical research in China is based on the linear relation between them.In view of this,this paper explores the effects of fiscal decentralization on residents' health and economic growth from two aspects of theoretical model research and empirical research,and based on the empirical results,we put forward a series of policy recommendations.First,considering the structural characteristics of the government's own fiscal revenue and expenditure,this paper divides the fiscal revenue and expenditure into local fiscal revenue and expenditure and central fiscal revenue and expenditure.At the same time,fiscal expenditure is divided into productive fiscal expenditure of different levels of government and non-productive(consumption)fiscal expenditure of different levels of government,and productive fiscal expenditure of different levels of government is introduced into production function and consumption fiscal expenditure of different levels of government is introduced into utility function.After the objective and constraint functions are identified,the explicit relationships between fiscal decentralization and economic growth and residents' health are obtained by constructing Hamilton function.Among them,through the derivation of the dominant relationship,we find that the relationship between economic growth and fiscal decentralization is inverted U-shaped,and analyzed the internal mechanism;through the numerical simulation of the dominant relationship,we find that the relationship between residents' health and fiscal decentralization is also inverted U-shaped.Theoretical model research plays a theoretical supporting role in the following empirical research.Second,in this paper,the corresponding empirical analysis is carried out to determine whether the theoretical model conclusions exist in the real economy.On the one hand,study on the influence of fiscal decentralization on regional economic growth.Based on the empirical study of 30 provinces and cities in China,this paper finds that:Primarily fiscal decentralization has a significant inverted U-shaped effect on the growth rate of the second industry,while it has no significant inverted U-shaped effects on the growth rates of the first and third industries.At the same time,using three different types of robustness tests,the results show that this conclusion has good robustness.In addition,the inverted U-shaped relationship between fiscal decentralization and the growth rate of the secondary industry proves the correctness of the theoretical model;Secondly,fiscal decentralization presents pronounced regional heterogeneity on the growth rate of the secondary industry,that is,in the eastern and central regions,fiscal decentralization has no significant nonlinear effect on the growth rate of the secondary industry,while in the western region,fiscal decentralization has significant effect on the growth rate of the secondary industry.On the other hand,research on the effect of fiscal decentralization on residents' health.Based on the empirical study of 30 provinces and cities in China,this paper finds that:Primarily fiscal decentralization has a significant U-shaped effect on residents' health.The conclusion of the theoretical model is inconsistent with the result of the empirical study.The reason may be that the effect of fiscal decentralization depends on different assumptions about the government's objectives.In the part of theoretical model research,it is assumed that the goal of government is to pursue the maximization of social welfare,while in the part of empirical research,it is assumed that the goal of government is to pursue the maximization of economic benefits.Moreover,using four different types of robustness tests,the results show that this conclusion has good robustness;Secondly,the influence of fiscal decentralization on residents' health has obvious regional heterogeneity,that is,in the western region,fiscal decentralization has no significant nonlinear effect on residents' health,while in the eastern and central regions,fiscal decentralization has significant U-shaped effect on residents' health.Finally,according to the empirical results,the paper proposes three targeted policy recommendations:moderately adjusting the decentralization effect to promote economic development and people's livelihood improvement;changing the spending preferences to promote the upgrading of industrial structure;controlling the decentralization effect to balance regional development.