An Empirical Study Of The Impact Of Decentralization Reform On Regional Growth

Decentralization reform is an important part of China’s economic system reform, it is undeniable that since the reform and opening up, decentralization reforms on China’s economic development has played a great role in promoting. Strictly speaking, China’s "facts decentralization" reform is a triple decentralization process of fiscal decentralization, administrative decentralization and economic decentralization. We can not accurately measure the degree of Chinese-style decentralization just by using the single-dimension indicators, thus, could not confirm the economic growth effects of decentralization reforms as a whole. This article uses provincial government panel data from1998to2011, selects seven indicators to evaluate Chinese-style decentralization panoramically. On this basis, we sum the seven multi-dimensional indicators, obtain a combined decentralization indicator, then apply the index system to analyze the impact of China’s decentralization reforms on regional economic growth Empirically.The results showed that:the degree of China’s decentralization increased gradually during1998-2011. The decentralization level of eastern, central and western regions are significantly different, the eastern region was obviously higher than the central and western regions. Chinese-style decentralization indeed Promoted local economic growth as a whole, but different dimensions of decentralization had different impacts on China’s economic growth. Fiscal decentralization is not conducive to regional economic growth, economic decentralization significantly promote regional economic growth, and economic growth effects of administrative decentralization is not clear. Moreover, the economic growth effect of decentralization in China has significant regional differences, and this effect in eastern region is higher than the central and western regions. The current form of decentralization is not conducive to narrowing regional disparities. Therefore, China should further deepen financial reform, standardize and improve the financial institutional arrangements, vigorously develop the non-state economy, increase economic decentralization efforts, continuously improve the administrative management, and promote coordinated development of regional economy.