Change of Fiscal Relations and Its Impact on Local Governments' Behaviors——Commemorating the 30th Anniversary of Reform and Opening-up

Since Reform and Opening-up,China has experienced three stages of fiscal regime reform in succession,namely,fiscal-contract-responsibility system,fiscal decentralization and public finance system.There are big behavior differences of local governments both in each period and at different level or region.Due to different incentive and constraint mechanisms induced by the change of fiscal relations between central and local governments,behaviors of local governments have greatly changed.The fiscal regime of local governments has been increasingly relying on central government and fiscal competition among different local governments has gradually been giving the priority to cooperation.Moreover,market-oriented reform promoted by local governments has been operated towards a better direction and the function of local governments has been shifted from economic government to public government.