The Dynamic Effect Of Fiscal Decentralization On The Quality Of Economic Growth

The research on the driving force of economic growth is one of the main subjects in academic circles.Early economic school thought that long period economic growth mainly depends on capital accumulation,technological progress and other factors,but institutional economics points out that economic system is an endogenous variable in the process of economic growth,which affects the level of economic development.Under different background,the impact of institutional demand and supply on the level of economic development will change.Under the background of the current economic new normal,the Chinese government pays more attention to the improvement of the quality level of economic growth.Therefore,it is of great theoretical and practical significance to study the influence of fiscal decentralization on the quality of economic growth.On the one hand,it is beneficial to the further regulation and adjustment of the financial management system.On the other hand,it will help to improve the economic quality and the stable and healthy development of the economy under the new normal environment.The market depends on the price mechanism and the supply and demand mechanism in the basic position of the economic development process.The government is in a supplementary position and guides the market mechanism in a timely manner.When the market mechanism can not rectify the deviation in the process of economic development,the government supplements the role of the market through administrative intervention,promotes or hinders economic growth.Since the reform and opening up,China's market-oriented economic system has promoted the improvement of the level of economic growth and promoted the development of industrial structure towards a reasonable,healthy and sustainable direction.The government's administrative intervention has played a certain role in a certain extent.Under the background of the new normal economic development,the development mode that only pays attention to the speed of economic development neglects the quality of economic development is no longer applicable.It pays attention to the influence of the government policy on the improvement of the quality of economic growth,optimizes the function of the financial means to realize the allocation of resource elements,and gives full play to the role of the financial system.Therefore,this paper selects total factor productivity to represent the quality level of economic growth,and comprehensively examines the impact of fiscal decentralization on the quality of economic growth.In view of the existing theoretical and empirical research on the relationship between the fiscal decentralization system and the influence of the quality of economic growth,the article first based on the fact of Chinese fiscal decentralization,respectively,to demonstrate the path of the impact of the decentralization of revenue and expenditure on the quality of economic growth.Secondly,we use the input and expenditure index to calculate the total factor productivity level of each province,and make a comprehensive measure of the decentralization of revenue and expenditure within and outside the budget of each province,and establish a dynamic panel model to examine the effect of fiscal decentralization on the quality of economic growth from the dual dimension of income and expenditure decentralization.The empirical analysis shows that: first,from the full sample data,budgetary revenue and expenditure decentralization plays a positive role in improving the quality level of economic growth.The decentralization of extra budgetary revenues and expenditures has a retardation effect on the quality of economic growth.Second,according to the sample,the effect of budgetary revenue and expenditure decentralization on the quality of economic growth in the eastern and central regions is the same as that under the full sample conditions.That is,the budget revenue and expenditure decentralization has a positive impact on the quality of economic growth in the eastern and central regions.Under the sample data of the western region,the decentralization of income and external revenue blocks the improvement of the quality of economic growth,while the decentralization of expenditure in and outside the budget promotes the improvement of the quality of economic growth.Third,the introduction of the control variables in the model,the level of opening up,the degree of government intervention,the level of human capital and the level of urbanization also have different characteristics because of different regions.In the light of the above theory and empirical analysis,we finally put forward the reform of the central and local fiscal authority and expenditure responsibility division,the improvement of the local financial governance mechanism,the formulation of the reform scheme of the central government and the local government income division,and the promotion of the financial revenue and expenditure on the quality of economic growth.For different regions,the relevant financial input and policy measures need to be distinguished,and the regional advantages should be brought into play to promote the improvement of the quality of economic growth.