Fiscal Decentralization,Iocal Economic Growth And Haze Governance

Fiscal decentralization is an important research topic in the field of institutional economics.Scholars at home and abroad have conducted extensive and in-depth studies on it.Fiscal decentralization involves the rational division of powers and responsibilities of public functions between different levels of government.It influences the behavior of local governments by giving local governments certain taxation power and expenditure responsibilities,thereby affecting local economic growth and public goods supply.Chinese-style fiscal decentralization has the characteristics of political centralization and economic decentralization.To explore the mechanism which fiscal decentralization affects the economic growth and the supply of environment public goods is of great significance to optimize the fiscal decentralization system and to realize the economic growth and environmental quality improvement win-win goal.Based on the first and second generation fiscal decentralization theory,the paper constructs a Stackelberg game model that includes both the central and local governments,and derives the scale effect and structural effect of fiscal decentralization,and analyzes the effects of fiscal decentralization on economic growth and haze governance.Then based on the provincial panel data of China from 1998 to 2015,a double-fixed model was used to empirically examine the effect of fiscal decentralization on economic growth,and spatial econometric models were used to empirically test the effect of fiscal decentralization on haze governance,so as to ascertain the coordination mechanisms of fiscal decentralization on economic growth and haze governance.The results show that:(1)Fiscal decentralization has a positive impact on economic growth.Fiscal revenue and spending decentralization can both significantly increase local GDP per capita GDP growth and GDP growth;(2)Fiscal decentralization has a positive impact on local haze governance.The positive scale effect of fiscal decentralization can offset negative structural effects and significantly reduce PM2.5 concentration.(3)Fiscal decentralization can achieve a win-win situation of local economic growth and haze governance.Fiscal decentralization as a system design can not only promote local economic growth,but also help local haze governance,it's not static impact on economic growth and haze governance,but can effectively coordinate local economic growth and haze governance.However,the design of fiscal decentralization system in China still needs to be optimized,that should appropriately raise the level of fiscal revenue decentralization and reduce the level of fiscal expenditure decentralization.