The Fenshuizhi Reform and the Cross Regional Difference of Economic Growth of Fiscal Decentralization

Based on researches by Barro(1990) and Davoodi and Zou(1998),this paper constructs a model of the relationship between fiscal decentralization and economic growth,We empirically research the impact of FenShuiZhi Reform on the cross regional difference of economic growth with provincial government data.It finds,after Fenshuizhi reform of 1994,the growth effect of fiscal decentralization is obvious different among different regions,and the fiscal decentralization enlages the district disparity.The author holds that the difference of cross regional local government behaviors is the important reason for the difference of fiscal decentralization on economic growth and the enlargement of district disparity.