Fiscal Decentralization,Administrative Decentralization of Local Governments and the Economic Growth Effect

In China,the decentralization of the higher government includes fiscal decentralization and administrative decentralization,and the present research focuses on the fiscal decentralization at the provincial level.This paper makes an empirical study on the impact of the fiscal decentralization and administrative decentralization on the economic growth of administrative regions with the relative data from 2002 to 2006.The result indicates that fiscal decentralization can promote regional economic growth,and the effect of the eastern region is better than that of the western region.However,the impact of administrative decentralization on economic growth is both beneficial and negative.The combined effect in the eastern region is negative and in the western region is positive.