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A Study on the Financial Transfer Payment in China-A New Political Economic Perspective

Author: LiDa
Tutor: YuZhongYing
School: Fudan University
Course: Political Economics
Keywords: Transfer payment New political economics Heterogeneity of interest Political rent Interest groups Flypaper effect
CLC: F812.45
Type: PhD thesis
Year: 2006
Downloads: 1491
Quote: 2
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Abstract


In this paper, financial transfer payment, is the grant that superior government gives junior government. In west developed counties, financial transfer payment system is already mature, so this question is not very regarded by economists. But, in China, as key part of the financial system of socialism-marketed economy , study on the question is very important and necessary.Why does this paper choose New political economics as study method? In China, the situation is very special, where economy is close associated with polity, and it is very necessary to thinks over heterogeneity of interests of different interest groups. So author introduces New political economics as study method, hopes to give new opinions about the historical changing of transfer payment system in China.This paper is made up of 6 chapters. The first is the leadin, author introduces the aims and methods of the study of this article. Then, in Chapter 2, author has summed up recent studying products, and gives own stand-points.Chapter 3 puts forward an independent model of Hibbs-Becker, bymeans of Hibbs’ model of ingroup political period and Becker’s theory of interests groups. It use new political economic theories, on the bases of heterogeneity of interest, analyze the different value tendency of China’s transfer pyment policy in different periods, which owing to the deciders’ taste , and how the stresses from the interests groups in different period affect the diciders’ taste, provides a new pespective for the study on changing of Chinese economic developing strategy.In Chapter 4, author uses some points of New political economics, puts forward a new word: Political rent, so we can get all-sided illustration about the structural warp of financial transfer payment in China.In Chapter 5, owing to the faultiness of finance reformation in 1994, the financial operation and resources of the county and town government was getting serious in the recent ten years. Many scholars claim to solve the finance difficulty of the fundamental governments through grants. Thinking the exist of flypaper effect, the writer think that the grants can’t solve this problem, and even induce the increase of the local governments deficit. The article analyzes affections that grants solve the county and town government finance difficulties, emphasize that if want to solve the fundamental government deficit, we must try to clear up all conditions that result in the flypaper effect.Chapter 6, based on Chapter 1 to 5, author does correlativecountermeasure research and makes some conclusions.

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Financial income and expenditure > Expenditure
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