TITLE:
The Impact of Per-Capita Transfer Payment on the Stabilization of Local Fiscal Expenditure
AUTHORS:
Chongqi He
KEYWORDS:
Per-Capita Transfer Payment, Fiscal Expenditure, Financial Function, Stabilizing Effect
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.5,
May
7,
2018
ABSTRACT: The
transfer payment should exert the economic and social stability effect. However,
the empirical data show that the total amount of transfer payment varies
greatly in different regions and deviates from the goal of the transfer payment
system to a certain degree. If per-capita transfer payment is adopted as the
analysis variable, from 1998 to 2015, 31 provincial government financial data
were used to empirically test the impact of per-capita transfer payment on the
stability of provincial fiscal expenditures. Based on the analysis of the
influence of fiscal self-sufficiency and the 5 types of fiscal expenditures
closely related to economic and livelihood stability, we can find that the
per-capita transfer payment has a significant negative correlation with the
stable effect of fiscal expenditure, while the effect of fiscal
self-sufficiency on the provincial financial expenditure has no significant
effect. Science and Technology Expenditure, Medical Expenditure on the
stability of local fiscal expenditure has a more significant negative effect.
The influence of Educational Expenses on the stabilizing effect of local fiscal
expenditure is not significant. Social Security Expenditure has the same effect
as Cultural Expenditure, and has a significant positive impact on the stability
of local fiscal expenditure. In order to further enhance the stabilizing effect
of transfer payment on local fiscal expenditure, we should improve the current
transfer payment system and improve the fiscal expenditure structure of local
governments.