Study On The Influence Of Financial Decentralization On Regional Capital Allocation Efficiency

The report to the 19 th national congress of the communist party of China pointed out that China's economy is in the crucial period of transforming the development pattern,optimizing the economic structure and transforming the growth drivers.Capital allocation efficiency as an important part of the total factor productivity,capital utilization efficiency is a measure of a country or a region,capital utilization efficiency of high and low quality often determines a country's economic development,the existing research shows that efficiency of capital allocation in China is in a lower level,it became China's economic transformation and upgrading of the obstacle on the road,so the capital allocation efficiency in our country the influence of factors on the quality of our country economy growth has important significance.The reform of economic decentralization system has spread all over the world,and its importance to economic growth is self-evident.Although financial decentralization is an important part of economic decentralization,it has not been paid much attention by academic circles for a long time due to the lack of formal institutional norms and the "bottom-up" feature.Moreover,financial decentralization refers to the distribution of financial development right and financial supervision right between the central and local governments.The distribution of these powers often means the change of capital control between the central and local governments.Therefore,it is of certain theoretical and practical significance to study capital distribution from the perspective of financial decentralization.Based on this,this article USES normative research and empirical research method of combining the,according to the construction of a theoretical framework to empirically and puts forward some countermeasures to solve the logic in the regional capital allocation efficiency and financial decentralization measurements as a starting point,in order to improve the efficiency of capital allocation in China,for the purpose of finding the financial decentralization affect regional capital allocation efficiency based on facts,in order to provide powerful support for the establishment of related policies.Specifically,in the theoretical analysis part,comb through to the development of the financial decentralization clear the financial decentralization have dominant decentralization and implicit the separation of two main characteristics,and from the perspective of the theory of market failure,financial dominant decentralized form of path,from fiscal decentralization under the background of urbanization and industrialization process accelerate analyzed the recessive decentralized form of financial path.On the basis of the new structural economics theory and the financial liberalization theory,this paper makes a theoretical analysis of the influence of explicit decentralization and implicit decentralization on regional capital allocation efficiency,and finds the path and direction of the effect of financial decentralization on regional capital allocation efficiency.Proposed "financial dominant decentralization from the ease to information asymmetry between the central and local financial marketization development in two aspects: improve the efficiency of capital allocation","financial hidden the separation of main will increase the negative externality of local financial system and the intervention of local bank loans to configure two aspects to reduce the regional capital allocation efficiency" and "fiscal decentralization will reduce financial hidden decentralized to the negative impacts of regional capital allocation efficiency" three research hypotheses.In the empirical analysis part,31 regions in China were taken as research objects from 2006 to 2017,and three theoretical models were constructed to verify the above three hypotheses.The verification results showed that the hypotheses were valid,and then the robustness test of the empirical results showed that the research results were credible.The results show that :(1)explicit financial decentralization helps to improve regional capital allocation efficiency by reducing the information asymmetry between central and local governments and reducing the system cost;Implicit decentralization of finance makes the local financial market expand too much,leading to financial chaos,thus reducing the efficiency of regional capital allocation.(2)fiscal decentralization can alleviate the budget shortage caused by the acceleration of urbanization and industrialization of local governments,so it can alleviate the negative effect of financial implicit decentralization on regional capital allocation efficiency.(3)China's capital allocation efficiency is still at a low level,and the gap between regions is large.Moreover,the development of financial market measured by the amount of stock financing has a negative effect on the efficiency of capital allocation.Based on the above research results,this paper proposes the following three policy Suggestions :(1)further decentralize the financial and fiscal power,and improve the enthusiasm of local governments for development.(2)strengthen financial supervision and control to ensure that no systemic financial risks occur.(3)improve China's capital market and further deepen reform and opening up.