Chinese-style Economic Decentralization——Evolution and Performance of Fiscal & Financial Centralization and Decentralization

The reform of decentralization accompanies the entire economic boom process of China.The reform of decentralization can be considered as an important institutional arrangement for the production of economic development.Researches on economic decentralization always emphasize fiscal decentralization.However,fiscal and financial measures are complementary and interactive in China.The Chinese-style economic decentralization results from the evolution and combination of fiscal and financial centralization and decentralization.It is inappropriate to analyze Chinesestyle economic decentralization only from fiscal or financial perspectives.From the perspective of the institutional frontier,fiscal decentralization and financial decentralization can be integrated into a uniform logical framework,so as to analyze the performance and existing rationality of each economic decentralization pattern.Each decentralization mode has both advantages and disadvantages.The mode selected according to objective institutional backgrounds and financial requirements is the optimal decentralization mode.