Research On The Impact Of Fiscal Decentralization On Regional Economic Growth And Environmental Pollution

Since reform and opening up,the quality of Chinese people's life and their income level continue to improve with the rapid growth of Chinese economy.However,with the development of market economy and the continuous deepening of social system reform,some problems are gradually revealed behind the rapid economic growth.For example,excessive consumption of resources,ecological degradation,environmental pollution and other environmental problems Economic growth is accompanied by the deterioration of ecological environment,which is not only caused by China's extensive economic growth mode,but also restricted by some institutional factors,such as Chinese characteristics of the fiscal decentralization system.Under the dual system of fiscal decentralization and political promotion incentives,local governments blindly pursue the rapid growth rate of economy,and ignore the protection of environmental quality.In this paper,according to the theory of fiscal decentralization and environmental economics,the author chooses 112 prefecture level cities as the research object,and takes a comprehensive study about the relationship between ecological environment and economic growth,and the effect of fiscal decentralization is also took into consideration.According to the results from empirical model analysis,we find the following main conclusions.First of all,the improvement of the fiscal decentralization and the level of industrialization will promote the economic growth of the city,but also aggravate the severity of the urban environmental pollution.Secondly,the relationship between per capita GDP and industrial SO2 emissions is inverted N-type,and their correlation is negative.Last but not the least,the impact of foreign investment on economic growth is uncertain,but it can improve the quality of the environment.On the basis of the results above,we put forward the following suggestions.Firstly,the official assessment mechanism need to change,green GDP and other technical indicators should take into consideration.Secondly,we need to cultivate a new growth point of city economy,change the pattern of economic development and realize the industrial structure upgrade.Thirdly,it is necessary to build new advantages of urban economic growth,optimize the structure of foreign investment and give full support to foreign companies in improving the environment equality.