Research On The Influence Of Financial Development And Fiscal Expenditure On The Quality Of Regional Urbanization

Financial development and fiscal expenditure play an important role in the construction of urbanization.At the same time,China’s urbanization construction has begun to enter the “new normal” of moderate development from a period of rapid development.The Ninth Party Congress emphasized the coordinated development of the region,and the urbanization construction also shifts from the accumulation of "quantity" to the "quality".However,financial development and fiscal expenditure show significant regional differences in China.Do these differences affect the quality of urbanization? What is the mechanism of financial development and fiscal expenditure on the quality of urbanization? Therefore,from the perspective of space economics,this paper will discuss in depth the impact of financial development and fiscal expenditure on the quality of urbanization.And this paper will empirically analyze the difference between regional financial development and fiscal expenditure and those impacts on urbanization quality.In the end it makes targeted recommendations.Specifically,based on the theory of spatial economics and financial development,this paper firstly sorts out the mechanism of financial development,fiscal expenditure,and urbanization quality.Draw the following conclusions:(1)Financial agglomeration has the significant spatial spillover,which means that the less developing regions can enjoy the positive external effects of the neighboring developed regions.(2)The level of financial development is significantly different,which is reflected in financial scale,financial structure,and financial efficiency,and there is a spatial difference in the role of financial capital in urbanization quality.(3)Under the background of fiscal decentralization with Chinese characteristics,the authority of local governments is more important than financial power.Local governments have shown significant differences in the scale of fiscal expenditure,fiscal expenditure structure,and local government autonomy.And the provincial fiscal decentralization has significant spatial correlation.(4)There are differences in the linkage mechanism between finance development and fiscal expenditure in regions with different levels of economic development.At the same time,fiscal decentralization affects local governments’ game of financial resources.This can lead to the level of financial supply and increase the gap in the quality of regionalurbanization.Based on the analysis of the mechanism,a comprehensive urban quality index is calculated by integrating the urbanization quality evaluation index system.And this index is tested for global and local spatial correlation.At the same time,a realistic examination of regional financial development and fiscal expenditures is conducted.The results show that there are spatial differences between the two.In order to further verify if financial development and fiscal expenditure have an impact on the quality of regional urbanization,the spatial weight matrix is built and a spatial panel model is established.Based on the panel data of 31 provinces in China from 2004 to 2016,empirical analysis was conducted from the global level and the regional level respectively.This model examines the spatial interaction between financial development and fiscal expenditure on urbanization quality.The results show that:(1)The effect of fiscal expenditure on the quality of urbanization is more significant than that of financial development,and there are spatial differences in the effects of them on urbanization quality.(2)The role and spatial spillover of financial structure in urban areas in the eastern region is significantly positive.In the central region,the spatial spillover of financial efficiency and financial structure is significantly negative.However,in the western region,the expansion of financial investment plays the most significant role in promoting urbanization.(3)The eastern region is rich in financial resources and has obvious advantages in location.In contrast,the financial resources in the western region are poor.And its fiscal expenditures are biased toward economic construction expenditures whose return payments can be obtained in the short term.Therefore,the rational planning of regional financial expenditures,the optimization of financial structure,the improvement of the financial ecological environment,and the promotion of interregional cooperation will all contribute to enhancing the positive spillover of financial agglomeration.At the same time,finance should properly play a leading role and improve the transfer payment mechanism.These measures can effectively narrow the gap between urban and rural areas and promote coordinated development among regions.