The Effect On Regional Economic Development From The Fiscal Transfer Payment Of The Central Government

Since the divided tax system was taken effect,economy has grown relatively fast,but the gap in regional economy has wider and wider.There is a close relationship between the fiscal transfer payment and regional economic development.It is quite necessary to do a study on the effect on the reasonable development of the regional economy,the economic growth in the west region and the enhancement of citizens' living standards from the current fiscal transfer payment in China.Based on the west region in China,this study analyzes the effect on the development of regional economy from the fiscal transfer payment of central government.In order to promote the harmonious development of regional economy,the study comes up with the regulation of the current transfer payment system,the establishment of reasonable transfer payment system and enhancement of the effect on western development from transfer payment.This paper introduces and comments on the documents concerned of scholar both in and out of China,based on the theoretic basis of fiscal transfer payment,the theory of regional economic development,and the relationship between fiscal transfer payment and regional economic development.Meanwhile,taking the west region as the sample and based on the reality in China,it makes a research on the fiscal transfer payment and regional economic development.First,the paper analyzes the current system of fiscal transfer payment and the situation of regional economic development in China.Second,making use of NLS,it evaluates the formula for regional economic development in China.The result shows that the fiscal transfer payment has taken some effects on the promotion of regional economic development,but not very great.Then,when analyzing the effects from the fiscal transfer payment on the promotion of regional economic development and the enhancement on public service standards and citizens' living standard in west China,the paper chooses the method of DEA,based on per capita transfer payment as the input index and the output index such as community service facilities and road length owned by per 10 thousand people,number of teachers and average educational years per 100 students,number of schools owned by per 10 thousand students,circulation of regional public libraries,dominated income of the whole year per capita in urban families,net income of the whole year per capita in rural families,index of the environmental pollution harness,quality of the patent application per 10 thousand employees.The result shows,in 2004,the method of DEA has taken effect only in Yunnan province in the west region.Eventually,based on the research results,the paper comes up with the advice of establishing fiscal transfer payment system which can optimize regional economic development,including: distinguishing the purpose of transfer payment to promote sustainable development of regional economy;regulating the structure of transfer payment to promote it reasonable;improving the construction of transfer payment system to regulate the form of transfer payment;further transfonning government functions and putting more efforts on streamlining the administration; reinforcing the construction of supervision systems to develop legal system of transfer payment; reforming the tax systems and enhance the tax supervision;increasing the economic growth in the west region,and improving the ability to satisfy its own fiscal needs.Based on Macroeconomics,Microeconomics,Economics of the Public Sector,Institutional Economics,Public Finance Program and the related research achievements of fiscal transfer payment,this study analyzes the effects on regional economic development from the fiscal transfer payment of central government in China in all aspects,in order to enrich the theories of fiscal transfer payment in China,to provide the theoretic and practical foundations for the reform of fiscal system,to enhance the development of fiscal transfer payment theory in west China and last to promote harmonious development of the regional economy.