Research On The Effect Of Fiscal Expenditure Efficiency On Urban Innovation Quality

China is in a period of strategic opportunities for development.In order to comprehensively build a modern socialist country,it is urgent to build a new development pattern and focus on promoting high-quality development.The report of the "Twentieth CPC National Congress" pointed out that we must adhere to the core position of innovation in the overall situation of my country’s modernization.Promoting the construction of an innovation-driven growth model in the new historical period is the key to overcoming obstacles to China’s development and successfully crossing the "middle-income trap".Improving the quality of urban innovation means optimizing the allocation efficiency of elements,building a modern industrial system,and realizing the harmonious coexistence of human and nature.Focusing on improving the quality of urban innovation is an effective choice to promote high-quality development.In the current period of increasing pressure on economic growth,in order to smoothly promote the growth of urban innovation quality,the government needs to take active actions and implement proactive fiscal policies.At the same time,proactive fiscal policies must be strengthened to improve efficiency.There are many factors that affect the quality of urban innovation,among which the efficiency of fiscal expenditure is the key factor.As local governments generally face financial pressure,the ability of public finance to support the quality of urban innovation cannot be fully utilized.Alleviating fiscal pressure by improving fiscal expenditure efficiency is an effective strategy to support the improvement of urban innovation quality.In order to further explore the impact of fiscal expenditure efficiency on the quality of urban innovation,based on the panel data of 26 provincial capital cities from 2001 to 2021,a multiple regression model was established for empirical analysis.First of all,from the empirical results,the efficiency of fiscal expenditure is significantly positively correlated with the quality of urban innovation.The higher the efficiency of fiscal expenditure,the higher the city’s substantive innovation,sustainable innovation and collaborative innovation.Secondly,the robustness of the results is tested by replacing the urban innovation quality indicators,fiscal expenditure efficiency estimation methods,and eliminating sample abnormal years.Thirdly,based on the differences in the economic development status,financial pressure and geographical location of each city,a heterogeneity analysis is carried out on the impact of fiscal expenditure efficiency on the quality of urban innovation.After that,based on the data of industrial enterprises and listed companies,the mechanism of fiscal expenditure efficiency affecting the quality of urban innovation is tested,and it is found that when the efficiency of fiscal expenditure increases,it affects the quality of urban innovation through three channels:tax reduction effect,digital economy effect and improvement of internal financing of enterprises.Finally,it further analyzes the impact of fiscal expenditure efficiency when there is spatial correlation in urban innovation quality,and discusses the impact of fiscal expenditure efficiency on corporate tax evasion.This paper shows that fiscal policy "improving quality and efficiency" is inseparable from high-quality economic development,and at the same time provides a new policy idea for reference for the reform of "tax reduction and fee reduction".