On the Impact of China's Fiscal Decentralization on Economic Growth

This paper,from the perspective of fiscal decentralization,with production function models and econometric analysis software,has made a regression analysis of the relation between fiscal decentralization and economic growth,which includes the annual growth rates of per capita GDP,fixed asset investment,and china's labor force of twenty-eight administrative regions from 1985 to 2009.The conclusion is found: fiscal expenditure power and economic growth have a negative correlation,while the fiscal revenue decentralization and economic growth have a positive correlation.So this paper proposes that the future direction of China's fiscal decentralization should focus on decentralization of fiscal expenditures,and then specific proposals have been put forward.