The Research On The Problem Of Transfer Payment To Reduce The Regional Economic Difference

The enthusiasm for production developed well through the adjustment of economicdevelopment strategies and the transformation of the economic system since theimpletion of the reform and opening up. The national economy developed rapidly. At thesame time, because of the different economic basis and government policy trend, theincreasing difference between different regions is existed. Regional economicaldifference is prevalent in the process of economic development in countries especially inthe developed countries. It has gain the attention of the government. China’s regionaldevelopment imbalance is a serious problem in China today. So building a harmonioussociety and promoting the economic development is a inevitable choice.The basic objectives of transfer payments are always the same. That is reducing theeconomic differences between regions. The role in coordinating economic is realizedthough providing public service to less developed areas. That is increasing theattractiveness of resources in developed areas. From a practical point of view, the transferpayments of developed countries play a significant role in reducing regional economicdisparities, such as Germany’s lateral balance, Canada’s implementing the equalizationsystem of transfer payments.Based on the perspective of the financial transfer payment, this thesis analyzes theeffect of transfer payments on reducing regional economic disparities. On the basis ofprevious studies from home and abroad, this article builds the model of measurement ofregression by selecting the status of economic development in the new era. On the onehand, this article draw the effect if the financial transfer payment on narrowing China’sregional economic differences; On the other hand, this article will find a more standardtransfer payment method through research. It can further improve the role of financialtransfer payment on narrowing China’s regional economic differences.This thesis has constructed a more reasonable system of research and it is dividedinto seven parts. The first part is mainly to define the research problem, pointed out thebackground and significance of the thesis, the domestic and foreign research overview,the research methodology, the main content, the innovation and weakness and so on. The second part defined the concept of the fiscal transfer payment and the regional economicdisparity and the type of transfer payment. This part also gives a further analysis of therole of the mechanism of transfer payments on regional economic differences. The thirdpart analyzes the practice and effect of transfer payments on narrowing the regionaleconomic disparities in China. The fourth part uses the main measurement methods forempirical analysis. Two models are constructed in this part, the first is a quantitativeanalysis of financial transfer payments on reducing regional economic disparities; thesecond is the quantitative analysis of "factor method" in the financial transfer payment.The fifth part will improve China’s transfer payment policy through summarizing theexperiences of the financial transfer payments in the United States, Germany and Japanon educing regional economic disparities. Based on the findings, the sixth part putforward a proposal that establishing a set of policies that can reduce regional economicdisparities. The last part describes the main conclusions of this study.