Factor Analysis of Regional Basic Public Services Disparity in China——A Regional Fiscal Disparity Perspective

Regional fiscal disparity is the main reason of regional basic public services disparity in China.Sub-national governments' fiscal capacities,intergovernmental transfer,off-budget expenditures have different influences on the basic public services disparity among provinces.This paper computes comprehensive factor scores of across regions by principle method and uses these scores as the proxy variables of the regional basic public services level to empirically analyze the affect of regional fiscal disparity on them.The results show that sub-nation governments fiscal capacities which decided by regional economic development levels are the main reason of the unequal basic public services across regions,and the intergovernmental transfer didn't decrease regional disparity as expected,however off-budget expenditure has positive effect for narrowing the regional disparity of basic public services.