Research On The Impact Of Fiscal Decentralization On The Efficiency Of Local Fiscal Science And Technology Expenditure

In today’s society,scientific and technological innovation is an important driving force for economic development and has become the core element of regional and even national competition and development.Scientific and technological innovation has the characteristics of non-exclusivity,non-competition and spillover of quasi-public goods,private investment in scientific and technological innovation cannot obtain all the benefits,coupled with the innovation activity itself has a large sunk cost and risk,private investment willingness is very low,so the government needs to support scientific and technological innovation activities.However,compared with other countries,although China’s financial science and technology investment scale is among the best,its output efficiency lags far behind that of developed countries.With the advancement of China’s fiscal decentralization system reform,more and more power is delegated to local governments,and local governments gradually play an important role in scientific and technological investment.Therefore,improving China’s fiscal decentralization system and improving the efficiency of local government science and technology expenditure is the key to improving China’s scientific and technological innovation ability in the future.This paper first analyzes the theory,sorts out the relevant theoretical basis on the basis of defining the relevant concepts,and discusses the impact of decentralization on the efficiency of local fiscal science and technology expenditure from the aspects of revenue decentralization and expenditure decentralization.Secondly,the analysis of the current situation is carried out,which mainly expounds the current situation of China’s fiscal decentralization and the scale of local financial science and technology expenditure,reveals the characteristics of China’s fiscal system and the problems existing in local financial science and technology expenditure,and uses the DEA-Malmquist method to measure the financial science and technology expenditure efficiency of 30 provinces and municipalities(except Tibet)from 2007 to 2019,and finds that the comprehensive efficiency of China’s financial science and technology expenditure is at a low level,because the pure technical efficiency is too low.First,the two-way fixed effect model is used to explore the impact of fiscal decentralization on the efficiency of local fiscal science and technology expenditure,and it is found that both revenue decentralization and expenditure decentralization have negative effects on the overall efficiency and pure technical efficiency of local fiscal science and technology expenditure,and the impact on scale efficiency is positive but not significant.Second,through a series of robustness tests,the credibility of benchmark regression is confirmed;Third,through mechanism analysis,it is found that fiscal decentralization will intensify local government competition,distort local government behavior,and then inhibit the efficiency of fiscal science and technology expenditure.Finally,based on the empirical analysis conclusions,a well-targeted countermeasure proposal is put forward to improve the fiscal decentralization system and improve the ability of scientific and technological innovation,including continuously deepening the reform of the fiscal decentralization system,optimizing the promotion incentive and assessment mechanism of local governments,improving the planning level of local financial science and technology funds,and improving the supervision and evaluation mechanism of local financial science and technology expenditure.