The Correlation Analysis Between Fiscal Decentralization And County-rural Financial Difficulty

Since the 20th century, as the theory of fiscal decentralization hasdeveloped on an unprecedented speed, so many development countriesinclude China have taken the fiscal decentralization reform. The fiscaldecentralization reform has been an important factor that can affect ourcountry's economic and society development now, and in the practice,another factor is the county and rural financial difficulty. The significanceof solving the county and rural financial difficulty has relationship withthe result of a series reforms such as finance system reform, country taxreform and government system reform. So how to solve the county andrural financial difficulty has become the focus in our theory field. Butfacing the practice effects, we find that many methods can't meet ouranticipation, and the county and rural financial difficulty still worried us.In the paper, the writer supposes that the fiscal decentralization degreemay be another important factor to the county and rural financialdifficulty. The writer wants to prove the supposal by using the positiveanalysis, and then finds the new method to solve the county and ruralfinancial difficulty from a new angle.There are five parts in the paper; the writer uses two chapters tointroduce the relative questions of the fiscal decentralization and thecounty and rural financial difficulty firstly. Secondly the writer chooses two important indexes which can represent the fiscal decentralizationdegree and the county and rural financial difficulty. The two indexes arenamed fiscal decentralization degree and fiscal self-satisfied rate. By theEViews software, we get the conclusion that the fiscal decentralizationdegree and the county and rural financial difficulty have line-relationshipand the higher the fiscal decentralization degree the lower the county andrural financial difficulty. Finally, the writer lays some methods to solvethe county and rural financial difficulty based on the conclusion.