Research On The Impact Of Fiscal Decentralization,Financial Decentralization And High-quality Development Of Local Economy

At present,China’s economy has turned to a stage of high-quality development.China’s "decentralization" reform has effectively weighed the relationship between decentralization incentives and central control in boosting economic transformation,and promoted the government to be "promising" and "restricted".".With the deepening of research on fiscal decentralization,the inseparability of financial decentralization and fiscal decentralization in terms of national governance and macro-control has received widespread attention.Therefore,studying the impact of fiscal decentralization and financial decentralization on high-quality economic development will help optimize my country’s fiscal and financial policies,which has far-reaching practical significance.This thesis first sorts out relevant research at home and abroad,focusing on the impact of fiscal and financial decentralization on economic development.In view of the current lack of research on the correlation between fiscal and financial decentralization at home and abroad,this thesis bases on the process of Chinese-style modernization,focuses on the internal logical relationship between fiscal decentralization and financial decentralization.The new development concept leads to high-quality economic development.The central fiscal decentralization system affects the financial decentralization system by affecting local government financing and loan behavior.At different stages of economic development,fiscal and financial decentralization promotes the rational allocation of resources,improves economic efficiency and affects high-quality economic development through rational combination.In order to test the impact mechanism of fiscal decentralization and financial decentralization on high-quality economic development,this thesis uses the panel data of economic operation of 30 provinces in China from 2005 to 2018 to conduct empirical analysis.The research results manifest that:China’s current level of fiscal decentralization has a significant positive effect on high-quality economic development,implicit financial decentralization has a negative effect on high-quality economic development,and explicit centralization has a positive effect on high-quality economic development,the interaction of fiscal and financial decentralization has a significant positive effect on high-quality economic development.Fiscal decentralization and financial decentralization have large regional differences in the high-quality development of regional economies,which manifests as follows:In the eastern region of China,financial decentralization has a positive effect on high-quality economic development.In the eastern and central regions,financial decentralization has a significant positive effect on high-quality economic development.In the central region,financial decentralization has a great negative effect at the level of 10%.Both the explicit centralization and implicit decentralization of finance in the western region have no significant impact on the high-quality development of the regional economy.Based on above,this thesis proposes the following countermeasures and suggestions:First,the fiscal and financial decentralization reform should adapt to the level of local economic development,and coordinate with each other to form a good linkage effect;second,increase the intensity of local fiscal system reform and accelerate the promotion of local fiscal and taxation Construction,reducing government intervention and increasing the government’s role in providing functional social support policies;third,continue to innovate the evaluation and measurement dimensions of high-quality economic development,and establish a diversified performance evaluation mechanism for local governments.