Positive Analysis On Local Fiscal Space Competition

Local fiscal revenue and expenditure is an important part of the country, and localfiscal competition is widespread in the world. In the context of China’s economicrestructuring, fiscal competition among local governments plays an important role inChina’s economy, research and analysis of local fiscal competition offer a new perspectiveto explain the current China issues. Also, improve the efficiency of local governmentfinances has important theoretical and practical significance to local resources efficiencyand the level of local governance.Firstly, through the input-output analysis of local government public finances, weevaluated the efficiency of expenditure efficiency using data envelopment analysis (DEA),and build Malmquist index to calculate China’s211prefecture-level city’s financialefficiency. Meanwhile, based on the above evaluation and calculating relevant indicatorsand concludes: Local fiscal competition does exist. Subsequently, by establishing spatialDurbin model to analysis competing models of local fiscal revenue and expenditure, weconcludes: whether fiscal expenditure competition or fiscal revenue competition, mutualimitation exist in local governments fiscal competition, and it’s reflected in the spatiallagged dependent variable coefficients are significantly positive. This paper also reflectsthe importance of regional economic and social characteristics of the explanatory variablesfor inter-regional relations and the impact of fiscal competition conducted analysis.Innovation of this paper is: first, select fiscal competition as a research perspective,using both normative analysis and model analysis to analyze the local fiscal competition.Second, using data envelopment analysis and Malmquist index to measure the publicfinancial efficiency of211prefecture-level city, making relevant policy recommendations;third, according to the spatial correlation indicators, establishing the spatial Durbin modelto analysis the fixed effects of local government fiscal competition. The inadequacies ofthis article are: first, for many exogenous factors affecting fiscal efficiency is not acomplete analysis; secondly, the results of local governments compete not necessarilyentirely due to local fiscal policy, but may also be affected by other economic factorscombined, local fiscal competition does not take into account the time lag effect.