An Empirical Study On The Factors Influencing The Growth Of Local Fiscal Revenu In Hunan Province

Local finance is the foundation and important pillar of local government governance and an important lever for implementing macro-control.The level of local fiscal revenue directly reflects the health of the regional economy and the ability of local governments to perform their duties.Therefore,the sustained and stable growth of its total amount is very important to the comprehensive development of a region.Over the past 30 years,with the advancement of a series of important fiscal and taxation system reforms,China’s total fiscal revenue has increased year by year.In line with this,the local fiscal revenue of various provinces have basically shown a trend of increasing year by year,but due to differences in scale and structure,their growth was not consistent.Based on the actual situation in Hunan Province,this paper explores the influence process and extent of five possible factors on the growth of local fiscal revenue.Among them,the analysis of the impact of business environmental factors is earlier involved in similar studies.This paper starts with theoretical analysis,and makes a preliminary discussion on the process of each factor affecting the growth of fiscal revenue according to the relevant economic management theories,thus constructing the theoretical foundation of the full text.The subsequent empirical analysis is divided into two levels.One is a descriptive statistical analysis of the current situation and characteristics of local fiscal revenue in Hunan Province based on provincial-level data(1994-2019).The second is to select the panel data of 14 cities and prefectures in Hunan Province for 26years(1994-2019),and to carry out quantitative analysis on the growth of local fiscal revenue in Hunan Province by establishing a multiple linear regression model.Through empirical analysis,the following conclusions can be drawn: First,the impact of economic growth,the increase in the total amount of local fiscal expenditure,the rise in prices and the optimization of the business environment on the growth of local fiscal revenue is significant;second,changes in the structure of local fiscal expenditures will affect the Local fiscal revenue growth;third,the contribution of the tertiary industry to the growth of local fiscal revenue may be higher than the contribution of the secondary industry to the growth of local fiscal revenue.According to the results of empirical analysis,this paper puts forward five policy suggestions to promote the sustainable growth of local fiscal revenue in Hunan Province in the future.They include changing the driving force of economic growth,optimizing industrial layout,adjusting the structure of fiscal expenditure,weakening the relationship between price level and fiscal revenue,and optimizing the business environment.