The Impact Of Fiscal Decentralization And Local Government Competition On The Income Gap Between Urban And Rural Area

Since the reform and opening up,China’s rapid economic development,urban and rural residents’ income continues to rise.With the improvement of residents’ income level,the income gap between urban and rural areas in China is expanding.In recent years,the Gini coefficient has been higher than the warning level of 0.4.The expansion of the income gap between urban and rural areas will have a negative impact on the sustainable development of economy and society,and deviate from the current goal of building a moderately prosperous society in an all-round way.Therefore,narrowing the income gap between urban and rural areas is conducive to economic development and social stability.The income gap between urban and rural areas has always been the focus of people’s discussion and attention.The causes and Countermeasures of the income gap between urban and rural areas are also the focus of scholars’ research.In recent years,in order to narrow the income gap between urban and rural areas,our government has formulated a series of preferential policies to improve the income level of rural residents.Although these preferential policies enable rural residents to obtain more income,the income gap between urban and rural residents has not been substantially narrowed.This may be due to some deep-seated reasons,China’s distribution policy can not be improved Effectively solve the problem of income gap between urban and rural residents.In the current system reform of our country,the reform of fiscal decentralization system is an important part of the reform,which will have an important impact on the income gap between urban and rural areas.At the same time,when we study the social income distribution,we can find that the income gap between urban and rural residents is related to the competitive behavior of local governments.Therefore,this paper studies the relationship between the income gap between urban and rural residents and the competitive behavior of local governments from the perspective of fiscal decentralization In order to explore the institutional causes of the income gap between urban and rural residents,this paper provides a better perspective.This paper first introduces the background of fiscal decentralization,local government competition and urban-rural income gap,and then constructs the research framework of fiscal decentralization,local government competition and urban-rural income gap based on the relevant theoretical basis at home and abroad to explore the economic relationship between various factors.On this basis,based on the panel data of China’s 31 provinces(cities)from 2005 to 2018,this paper uses the previous literature to construct indicators such as the level of fiscal decentralization,local government competition and urban-rural income gap,and uses static panel and dynamic panel methods for empirical analysis,so as to provide the theoretical mechanism and mechanism for the effect of fiscal decentralization system and local government competition on urban-rural income gap It also evaluates the role of its cross indicators in the change of urban-rural income gap.The results show that: the level of fiscal decentralization is negative in the estimated results of the model,which indicates that both fiscal revenue decentralization and fiscal expenditure decentralization can narrow the income gap between urban and rural areas;the estimated results of local government competition in the model are positive,which indicates that local government competition can expand the income gap between urban and rural areas;the estimated results of the interaction between fiscal decentralization and local government competition in the model It shows that the comprehensive effect of fiscal decentralization and local government competition can expand the income gap between urban and rural areas.On the basis of empirical analysis,this paper finally puts forward four corresponding policy suggestions to narrow the income gap between urban and rural areas: improve the existing fiscal decentralization system and promote the healthy development of economy;improve the performance appraisal and promotion mechanism of local government officials,reasonably guide the local government competition;optimize the economic structure,promote the modernization of rural areas;deepen the supporting reform The policy system of sharing development between urban and rural areas should be constructed.