2011Economic SurveyRequires access

Analysis of the Dynamic Effect of Fiscal Decentralization and Local Fiscal Expenditure for Agriculture

LI Xiao-jia

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Abstract

By using China's provincial dynamic panel data model,the author makes an empirical analysis of the effect of fiscal decentralization on local fiscal expenditure for agriculture.The result of the research shows that fiscal decentralization failed to promote the improvement of local fiscal expenditure for agriculture,but in the evaluation system of officials with economic growth as the core,the positive effect of fiscal decentralization on economic expenditure is significant and it also has positive effect on social expenditure,but its effect on transfer expenditure is not obvious.

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What this paper is about

By using China's provincial dynamic panel data model,the author makes an empirical analysis of the effect of fiscal decentralization on local fiscal expenditure for agriculture.The result of the research shows that fiscal decentralization failed to promote the improvement of local fiscal expenditure for agriculture,but in the evaluation system of officials with economic growth as the core,the positive effect of fiscal decentralization on economic expenditure is significant and it also has positive effect on social expenditure,but its effect on transfer expenditure is not obvious.

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Available abstract

By using China's provincial dynamic panel data model,the author makes an empirical analysis of the effect of fiscal decentralization on local fiscal expenditure for agriculture.The result of the research shows that fiscal decentralization failed to promote the improvement of local fiscal expenditure for agriculture,but in the evaluation system of officials with economic growth as the core,the positive effect of fiscal decentralization on economic expenditure is significant and it also has positive effect on social expenditure,but its effect on transfer expenditure is not obvious.

Key concepts: Decentralization, Economics, Panel data, Agriculture, Fiscal imbalance, Fiscal union, China, Fiscal policy

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