Institutional Environment Impact On The Fiscal Policy Dividend

Facing the emerging pressure of economic downtown, the state policy system and its "dividend" effects is becoming more and more important. In order to maximize the dividend, all levels of government should ensure the policy being timely supplied, appropriately innovated and rightly transformed. In all kinds of policy system, the fiscal policy system occupies an important position, it will bring an important impact to the enterprise production and national economic growth, either directly or indirectly. Especially in the high-tech industry, some small and medium-sized enterprises can even enjoy a larger scope of policy dividend. So the research on the effects of fiscal policy do have some great practical implications.Being the result of fiscal policy operation, policy dividend will be affected by the impact of institutional factors. Among the institutional factors, the formal institution and informal institution play a different role in the feedback of fiscal policy, partly due to their different mechanisms. In this paper, on the basis of theoretical analysis, we put forward three related theoretical hypothesis. Hypothesis1is that formal institution is the important methods for enterprises to access policy dividend. Hypothesis2is that the informal institution has an important influence on the process of striving for fiscal police dividend, and it can replace the formal institution in some cases. Hypothesis3is that the substitution effect of informal institution is limited, and there is a nonlinear relationship, which appeals as an inverted U type, between the informal institution and the fiscal policy dividend. In order to test these hypothesis,355high-tech enterprises listed on GEM have be chosen as the research samples in this paper, and then a regression model has be built based on these data. We find that, there is a significant positive correlation between the formal institution and the fiscal policy dividend, as well as the informal institution; the informal institution can replace the formal institution in some extent, especially in the region where government performs poorly; nonlinear relationship do exist between the informal institution and the fiscal policy dividend, and it do appear to be an inverted U type too. At last, we put forward some policy suggestion according to the above conclusions.