A Research About The Influence Of The Central Financial Transfer Payment On The Provincial Government’s Fiscal Effort

After 2009,China’s fiscal transfer payment system has been further improved,and the transfer payment structure of general transfer payment,special transfer payment and tax return has been formally established.In recent years,the central government has paid more attention to the financial transfer payment of the provincial government,and the scale of the transfer payment has been enlarged.Perfect financial transfer payment system should be as far as possible to form a positive incentive to local finance.This paper based on the 2009 financial transfer payment adjustment,30 provincial regions from 2009 to 2014 in China,through the establishment of regression model,analysis of the provincial government since 2009,the central financial transfer payment effect on local fiscal effort.This article from the financial transfer payment,fiscal effort related theory,to explore the influence of central to provincial fiscal efforts of local government financial transfer payment,from the theory and analysis of the status quo of the central provincial government fiscal transfer payment at the same time,based on the related data from 2009 to 2014 30 provincial regions to calculate the regional fiscal effort through the financial transfer payment data and financial data to establish econometric model analysis.By comparing the empirical results,the analysis method of GMM system is the most effective,persuasive,concludes that since 2009,China’s central government to the provincial fiscal transfer payment to the local finance to form a certain degree of negative inhibition,but when the financial strength and the lag of fiscal effort efforts have a great relationship,fiscal effort path with strong inertia.The empirical results show that further improve the financial transfer payment,is conducive to promoting the development of local finance,therefore should be based on the correct handling of the financial relationship between the central government and local,to further improve the fiscal transfer payment system,adding incentive factors in system design,incentive mechanism is more significant for the local governments to promote the equalization of basic public services.The innovation of the paper is:the 2009 fiscal transfer payment adjustment after the data to study the impact of local fiscal effort of the central financial transfer payment,and before the empirical analysis first constructs a theoretical model to a more comprehensive empirical model on the choice of the variable.These innovations make the empirical analysis more accurate,and the conclusion of the article is more practical significance.