General Transfer Payments,structure Of Fiscal Expenditure And High-quality Economic Development

The concept of "high-quality economic development" first appeared at the 19 th National Congress of the Communist Party of China,indicating that China’s economy has successfully shifted from high-speed growth to high-quality development.Once the concept was proposed,it attracted a lot of attention.At important meetings,major leaders have stressed the importance of high-quality economic development for China’s development in the new era.The realization of high quality economic development needs the support of scientific and effective financial policy.The transfer payment system and fiscal expenditure policy,as the basic fiscal policy for the rational allocation of national resources,play an important role in the process of high-quality development.On the one hand,under the top-down administrative performance appraisal pressure and the double-layer historical background of the "official promotion championship system",the transfer payment system is a correction mechanism under the fiscal decentralization system,whether it is reasonable and directly affects the revenue and expenditure behavior of the local government,and then affects the high-quality development of the local economy;On the other hand,it is also worth paying attention to how the local government optimizes the structure of fiscal expenditure to maximize the high-quality development of local economy.Based on the above background,this paper brings general transfer payment,fiscal expenditure structure and high-quality economic development into the same framework,and studies the multiple roles of the three.First of all,this paper defines the general transfer payment,the structure of fiscal expenditure and the high quality development of economy,and briefly describes the related theories.Secondly,according to relevant theories,the influence mechanism and action path of the three are sorted out,and the research hypothesis is put forward accordingly.Thirdly,determine the general transfer payment,the structure of fiscal expenditure and the high quality of economic development,and analyze the status quo according to the calculated indicators;Secondly,the dynamic panel simultaneous equation model is constructed with the data of 30 provinces,municipalities and autonomous regions from 2007 to 2021 except Xizang,Hong Kong,Macao and Taiwan,and the three-stage least square method is adopted for empirical analysis.It is concluded that the structure of fiscal expenditure has a direct impact on high-quality economic development.Moreover,general transfer payments indirectly affect the high-quality economic development by affecting the structure of financial expenditure.Then,the heterogeneity test is carried out by taking the level of financial self-sufficiency rate as the boundary to distinguish,and it is found that the influence of fiscal expenditure structure on the high-quality economic development exists regional heterogeneity.Regions with different levels of financial self-sufficiency rate adapt different fiscal expenditure structures.Finally,according to the above analysis and empirical conclusions,the paper puts forward targeted policy suggestions from four aspects: optimizing the transfer payment system,optimizing the structure of financial expenditure,optimizing the evaluation criteria of officials’ performance and promoting the high-quality development of regional economy.The innovation of this paper is reflected in the following three aspects: First,general transfer payment,fiscal expenditure structure and high-quality economic development under the same theoretical framework,multi-dimensional theoretical research and empirical analysis,trying to clarify the multiple mechanisms of action among the three;Secondly,in the aspect of heterogeneity analysis,the provinces are grouped according to the different levels of financial self-sufficiency rate.The empirical results show that the structure of fiscal expenditure has heterogeneity on the high-quality economic development,that is,different regions adapt different structure of fiscal expenditure.Thirdly,a comprehensive index system will be established based on the five development concepts of innovation,coordination,green development,opening up and sharing,and the high-quality economic development index of 30 provinces,autonomous regions and municipalities directly under the central Government excluding Xizang,Hong Kong,Macao and Taiwan will be calculated to comprehensively measure and evaluate the quality of economic growth from 2007 to 2021.