| Since the system of tax distribution reformed, the central government of our country has strengthened the concentration of the financial funds constantly, but the responsibility of the 1 ocal public goods supply has sheered to the lower level continuously. This situation causes the imbalance of the financial resources and the administrative power in our country. Under the li mited financial resources, the local governments of our country fail to support themselves co mpletely, so they give priority to the economic public goods which can bring the cash flow an d then drive the economic development. Therefore, they lack motivation for the supply of the noneconomic public goods. Benefit from the right incentives, "Chinese" fiscal decentralization promoted the supply level of our country’s economic public goods such as traffic, communication and electricity to increase significantly. But for public goods which is not economic such as health care, education and environmental protection, local governments obviously lack enthusiasm. By taking fiscal self-supporting capacity as the starting point, this paper aims to conduct regional division according to the economic development status. On the basis of analyzing the status quo of China’s public good supply, it is to mainly study the problem about structural imbalance of public good supply in China.In economically developed places, the inventory level of economic public goods is relatively high. In addition to continuing adding economic public goods appropriately, non-economic public goods will also be increased to attract capitals and talents, so as to enhance the regional competitiveness.In addition, in economically developed places, residents have high income, so they tend to have strong preference to non-economic public goods. Furthermore, they are capable of transferring such preference to local governments via adequate approaches. To meet the preference of residents, local governments will increase the supply of non-economic public goods. Therefore, while enhancing the fiscal self-supporting capacity, local governments in economically developed places will increase the economic and non-economic public good supply. However, in places with underdeveloped economy, the inventory level of economic public goods is relatively low, so the local development still has to depend on economic public goods. Moreover, due to the low income level, residents in these places still have strong preference to economic public goods. Therefore, when the fiscal self-supporting capacity by local governments in economically undeveloped places is improved, the supply of economic public goods will be increased. This paper used the panel data of the country’s 256 regional level cities in 2003-2009 to carry out empirical study. The study shows that in developed areas, the improvement of local governments’ financial self-sufficiency will not only improve the supplying level of local economic public goods, but will also influence the level of public goods which is not economic in a positive way; In developing areas, improvement of local governments’ financial self-sufficiency can improve the supplying level of economic public goods, but will have restraining effects for the supply of public goods which is not economic. |
