A Study On The Impact Of Local Fiscal Expenditure On Economic Growth Under The Tax Sharing System

Since the reform and opening up China's economy has achieved rapid growth,fiscal expenditure as a tool for government to adjust the economy,for the sustained economic growth has an important role.In 1994,the state implemented a tax-sharing system reform,the central and local financial power and obligations have been greatly changed,the local government has a certain degree of revenue and expenditure autonomy,can better serve the regional economy.However,the Chinese tax system has obvious economic decentralization and political centralization,that is,local governments have the power to develop regional economy,but the promotion or appointment of officials need to be decided by the central authorities.This top-down political management system means that officials want to be promoted,they need to meet the central requirements of the efforts to develop regional economy,in a sense contribute to economic growth,but the local government sometimes in order to make their own performance To maximize the tendency to choose some short-term projects for financial expenditure,do not want to increase policy support in the field of public services,and because of the increase in independent awareness will produce a certain self-interest behavior,by increasing administrative spending for personal gain,the final Will have a certain bias on fiscal expenditure,is not conducive to sustained economic growth.This paper mainly studies the impact of local fiscal expenditure on economic growth under the tax-sharing system.Firstly,it discusses the historical background of China's tax-sharing system and the evolution of local fiscal expenditure under the tax-sharing system,It divides the local fiscal expenditure into administrative management,science,education,culture and health expenditure and economic construction expenditure,and divides the provinces according to the economic development level into the east,The three regions of China and the West,compare the three kinds of regional expenditure in the tax system after the development of the situation,found that the three regions of the economic construction expenditure accounted for significantly higher than the other types of expenditure,reflecting the local fiscal expenditure there is a certain degree of bias;Secondly,it discusses the impact of local fiscal expenditure on economic growth under the tax-sharing system,It analyzes the influence of local government's assessment mechanism,political tournament and self-interest behavior on fiscal expenditure,explains the reasons of local fiscal expenditure bias,The paper analyzes the impact of financial expenditure on economic growth through technological progress,human capital,transaction costs and physical capital on economic growth;Then,the effect of various kinds of fiscal expenditure on economic growth is obtained by using provincial panel empirical test,Economic expenditure is on the economy The negative impact of a significant positive impact on economic growth of science,education expenditure,Three categories of expenditure in the central region has produced a positive impact on the economy,but the biggest factor affecting science,education expenditure,Administrative expenses western region of negative impact on the economy,generate positive economic construction spending,but small and not significant coefficient,a significant positive impact on economic growth of science,education expenditure;Finally,according to test results suggested that the strengthening of local investment in public services,to improve the examination system of local officials,enhanced supervision of financial expenditure to improve the transparency of spending,establish and improve the transfer payment system is recommended.