The Spillover Of The Financial Interests Of The Public Goods In The Inter-regional Analysis

In recent years, with the rapid development of China's economy, regional disparities have become an engrossing problem. It studies the inter-jurisdictional spillovers which is one of the important factors to aggravate regional disparities.Externality theory is one of the important contemporary economic theories. It can be divided into interests'spillover and costs'spillover according to the effects of the economic master's conduct. In theory, local public products should be provided by local governments, the benefit of such public goods is limited to the scope of the local government. But in actual economic life, the benefits of public goods cannot just be limited within the right area of local government, the beneficiaries may be well beyond the scope of this area.In our country, there is a big difference between the regional factors and the geographic location, regional economic development is not balanced. Especially since the reform and opening up, our country executes unbalanced regional development strategy, regional preferential policies enhance the eastern regions'attractive of domestic and foreign production. Domestic capital, labor and technology flow to the eastern region, to promote the eastern region's rapid economic development. At the same time of interests'spillovers, the central and western economy has not made a corresponding rapid development, and gradually widened the regional disparities. At present there's a big gap of the level of public services between the eastern, central and western regions. There is a rapid economic development and a high level of public services in the eastern region, leading to excessive factors of production flow to the wealthy regions, and making the regional imbalance of economic development worsened. Thus it hinders community economy healthily, stabilize and persistence development.For the problem of inter-jurisdictional spillovers, the important means to solve it is the government's policy coordination; the inter-jurisdictional spillovers of the region public article turns over to directly affect our country's rationality of policy arrangements. However our institutional arrangements does not fully consider the problem of the inter-jurisdictional spillovers, even to some extent, the current policies still aggravate the inter-jurisdictional spillovers, and not achieve the original intention of coordinated development.The paper mainly studies the financial incentives of the inter-jurisdictional spillovers. First I select the most representative local public goods to illustrate the status of the inter-jurisdictional spillovers in some parts of our country. I mainly analyze the problem from four aspects, such as natural resources, environmental protection, education and social security. Using externality theory and model of the public goods with spillover benefits, I analyze supply shortage and focus on analyzing financial system, tax policy, transfer payment system and other relevant policies of inter-jurisdictional spillovers influence. Combined with the experience of the United States, Germany and other countries, I put forward reasonable suggestions of revising the inter-jurisdictional spillovers, reduce the gap of economic development and improving the public services.