Academic Journal of Humanities & Social Sciences, 2024, 7(1); doi: 10.25236/AJHSS.2024.070123.
Rui Wu1, Pingfang Ming2, Jingxin Huang1, Yutong Li1
1School of Economics and Management, Hubei University of Science and Technology, Xianning, 437100, China
2School of Physical Culture, Hubei University of Science and Technology, Xianning, 437100, China
The article is based on a panel data model of 30 provinces in China from 2000 to 2020,and uses the System Generalized Moment Estimation(GMM)method to empirically test the impact of moderate decentralization of financial power by Chinese governments on economic operational efficiency. The results show that for every 1% increase in degree of decentralization of financial power by higher-level government,local economic efficiency will increase by 0.327%, confirming the positive role of moderate decentralization of financial power by higher-level governments. Under the premise of strict compliance with tax laws and the principle of "matching financial power,financial resources, and administrative power", the superior government moderately delegates a certain amount of financial power to local governments to re match financial and administrative power, which can mobilize the enthusiasm of local governments to develop and conserve tax resources, and ensure and enhance their ability to provide public services.
Superior government; Decentralize financial power; Local economic efficiency; Public service supply capacity
Rui Wu, Pingfang Ming, Jingxin Huang, Yutong Li. Research on the Impact of Moderate Decentralization of Financial Power by Superior Governments on Local Economic Efficiency and Public Service. Academic Journal of Humanities & Social Sciences (2024) Vol. 7, Issue 1: 147-157. https://doi.org/10.25236/AJHSS.2024.070123.
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