TITLE:
Estimation of Local Fiscal Extractive Capacity in Guangdong Province and Analysis of Influencing Factors—An Empirical Study Based on 21 Prefecture-Level Cities
AUTHORS:
Kaipeng Zheng
KEYWORDS:
Fiscal Extractive Capacity, Fiscal Expenditure Decentralization, The Factor Analysis, Empirical Analysis
JOURNAL NAME:
Modern Economy,
Vol.8 No.3,
March
6,
2017
ABSTRACT: Fiscal Extractive Capacity is an important component
of national capacity, and its inadequacy will drive local governments to raise
funds through non-standard channels and bring negative effects on national
governance. In this paper, we define the fiscal extractive capacity through the
fiscal extractive scale, fiscal extractive degree of self-sufficiency and
fiscal extractive sustainability, and we use the fixed-effect model and factor
analysis method to calculate and draw the empirical analysis of the fiscal
extractive capacity of the prefecture-level cities in Guangdong Province from
2008 to 2014, and the results show that fiscal expenditure decentralization,
economic factors and population factors have significant impact on fiscal
extractive capacity. Therefore, it is suggested that we should divide the
fiscal power of the prefectural city reasonably, promote the optimization and
upgrading of the industrial structure, and strengthen the financial guarantee
to the prefectural government through the reform of the transfer payment
system.