On The Correlation Of Regional Fiscal Revenue And Economic Growth

Fiscal revenue and economic growth are closely related. The growth of economy effects the fiscal revenue, the speed and quality of economic growth will promote or constrain the fiscal revenue , while fiscal revenue plays a considerable role for meeting the needs of economic development, supporting the government's financial functions to play and ensuring economic to stable growth. If the speed of fiscal revenue is too slow or the scale of finance is too small, it will make the economy lack motility. In the contrary, it will restrict the activity of economic development. And that to maintain coordinated development between the two sides has been a hot topic in theoretical circles. Currently, there are many studies about the relationship between economic growth and fiscal revenue at home and abroad, and many theoretical studies have been more mature, but they have not theoretically and empirically analyzed the correlation between the two in the manner of deep and systemic, and also lack the studies with the long-term formation mechanism and effect factors of the relationship .Thus there are some difficulties in analyzing the regional trends in future, it is also often fail to give valuable policy recommendations on reform, which is to promote economic development in specific areas.For this situation, this article, according to the data of fiscal revenue and economic development in Shanxi Province from reform and opening up, theoretically and empirically analyzed the correlation between the two in the manner of deep and systemic. First this article sets out the background and significance, and proposes the main framework on the basis of collating and reviewing the literature which are existing home and abroad; secondly , this article analyzes the current situation of fiscal revenue and economic growth, from two perspectives of volume and structure, in Shanxi Province; Then it tests the coordination between the two, using econometric model, and learns lessons to identify problems; Finally, on the basis of the above studies, proposes policy recommendations about the tax reform and economic restructuring, and so on.