An Empirical Analysis Of The Relationship Between Fiscal Revenue Assignment Mechanism And Rigid Growth Of Local Fiscal Revenue In China

Since the tax reform in1994，the growth rate of fiscal revenue hasbeensuccessively over that of GDP．Quantitative analysis of the impact that fiscalrevenueassignment mechanismhason the fiscal revenue growth is a weak link amongthe research of reasonswhich lead the sustained revenue growth．By usingpanel-datacovering31provinces from2004to2012，this paper makes the empirical analysis ofthe impact whichfiscal revenueassignment mechanismhason the growth of local fiscalrevenue．This paper has the following characteristics：Firstly，the first try to introduce thefiscal revenue assignment mechanismsto the empirical model of fiscal revenue growth；Secondly， taking unbalanced regional development of China into account，analysingthe importancethat the fiscalrevenue assignment mechanismshave made onthe local fiscal revenue growth，whichincludeseastern，central and western region．The empirical results show：fiscalrevenueassignment has a significant positiveimpact on the high-speed rigid growth of local fiscal revenue；Furthermore，from theeast to the centraland then to the west，the growths oflocal fiscal revenue have asignificantly decreasing dependence on economic development， while have asignificantly increasing dependence on fiscalrevenueassignment．To make local fiscal revenue of China get rid of dependence on fiscal revenueassignment mechanismsand ensure its long-term sustainable growth，the paper givesthe following recommendations：Firstly，the government functions should change，the economic growth model which depends on government investment should change；Secondly，establish a more scientific and objective performance evaluation system，lowerthe importance of GDP growth rate and fiscal revenue growth rate and otherindicators in the assessment；Thirdly，byimplementingthe unplannedtax collections，strengthening budget constraints and carrying outthe budget principle that revenuebased on spending，gradually change the fiscalrevenue assignment mechanisms．...