A Study Of Local Government Fiscal Expenditure Competition And Its Economic Effects In Shandong Province

After the reform and opening up,the establishment of the socialist market economic system and the reform of the tax sharing system have provided the soil for the government competition.At the same time,the performance assessment method of the local government of China has made the competition between the governments more and more obvious.The main way of government competition is fiscal competition,and financial competition is divided into fiscal expenditure competition and tax competition.However,due to the centralization and limitation of tax legislative power,local governments have taken the competition of fiscal expenditure as the main means of financial competition.As the main body and unit of the operation of China's macro economy,the municipal government is of great significance to the study of the financial expenditure competition between the governments at this level.The domestic scholars have made a certain discussion on the financial expenditure competition from the background,cause,definition,existence,economic effect and so on.But most of the problems of the provincial intergovernmental financial expenditure competition are the main research objects,and the research on the financial expenditure competition among the municipal governments is less.Based on this,this paper,taking Shandong Province as an example,explores the interactive relationship between the competitive behavior of financial expenditure among cities in various cities,sums up the competition mode of the local government financial expenditure in Shandong Province,and tests the economic effect of the competition behavior of the local government's financial expenditure,so as to enrich the relevant research theory and provide the government policy research.Reference resources.This article first analyzes the development and evolution of the financial expenditure competition of local government in Shandong Province,including the main forms of financial expenditure competition in Shandong Province,as well as the positive and negative effects brought by the competition of financial expenditure in Shandong province.In this paper,the manifestations of expenditure competition are divided into maintenance expenditure competition,social expenditure competition and economic expenditure competition.At the same time,it is found that the financial expenditure competition among cities and cities has brought many positive effects,including the improvement of regional infrastructure,the flow of talents and funds,and the further development of the urban comprehensive development level.It also has some negative effects,including some redundant infrastructure construction,excessive local government debt burden and the rise of local protectionism.In order to further understand the competition mode of the local government financial expenditure in Shandong Province,this paper uses the spatial error model and builds the strategic response function of the financial expenditure competition based on the related data of the cities of Shandong province for 2007-2016 years.It proves the existence of the financial expenditure competition among cities in Shandong Province.At the same time,we get the conclusion.The model of the competition of financial expenditure in Shandong province.On the subject of competition,we find that in the Shandong Province,the competitive behavior of the financial expenditure is stronger than the geographical distance from the neighbouring city.In the way of competition,each city in Shandong province shows an interactive spatial interaction in per capita fiscal expenditure,per capita maintenance expenditure,per capita social expenditure and per capita economic expenditure,and the change of the corresponding financial expenditure from the neighboring cities will directly lead to the increase of the corresponding financial expenditure in the local city.In the competition content,the competitive intensity of each city in the competition of per capita economic expenditure is greater than that of the other two types of expenditure,while the social expenditure is greater than the intensity of the competition of the maintenance expenditure.In order to understand the economic effect of the competitive behavior of local government financial expenditure in Shandong Province,this paper uses the classic production function to build a model to test the economic effect of local government financial expenditure competition.The empirical results show that the competition behavior of fiscal expenditure in various cities will have an impact on the local economic development.At the same time,this effect will be different because of the regional economic conditions.Compared with the economically developed cities,the financial expenditure competition is more obvious in the less developed areas,that is,when the scale of the economy has not reached a certain level,the influence of the fiscal expenditure competition on the regional economic development is most obvious.In addition,from the perspective of Shandong Province,or according to the level of economic development level,the economic effect of social expenditure competition is stronger than the economic effect of maintaining sexual expenditure competition and economic expenditure competition.The economic effect of maintaining sexual expenditure competition is not even able to be expressed in the developed areas.There is obvious significance.At the end of this paper,the results of the above analysis are summarized.At the same time,some policy suggestions are given to further standardize the competition behavior of Shandong local government financial expenditure and maximize the positive effect of financial expenditure competition.