The Effects Of Fiscal Transfer On Economic Growth

"Fair" and "efficiency" are key issues about whether China can achieve both harmony and continuous development. For nearly a decade, China's economy maintained a good situation of stable and rapid development. But in the meantime, the widening rich-poor gap resulted in the psychological of hate rich. "Fair" with "efficiency" became increasingly prominent contradictions, which deserved our attentions. Once resolved properly, society will be harmonious and the people will be united, and the economy will be able to maintain a stable growth; but if resolved unwell, affecting the social cohesion, the consequences would be disastrous.How can we effectively bring about a reasonable solution for the "fairness" problem resulted from rapid economic development? In recent years, the concerns of scholars invested more and more in the "transfer payments", while I am very interested in this. It is in this background, this article in order to take the intergovernmental transfer payments as my research object. After stating the situation and significance, the article examines the concepts, roles and relevant histories of fiscal transfer. Then the article creates a simple regression model, using available data in the latest decade, in order to make positive analyses about the effects of fiscal transfer on economic growth. In the end, according to the basic conditions of current social development, I made a number of suggestions and recommendations about how to formulate and implement fiscal transfer.Because of the specificity of the data-gaining and the limits of my theoretical level, there are some deviations and errors in calculating and verifying the relationship between different economic variables. But we can still accept the conclusions of what we made. Meantime, the suggestions and recommendations need further discussions.