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The Research on Intergovernmental Transfer Payment and Equalization of Government’s Finance

Author: ZhangMingMing
Tutor: JiaoJianGuo
School: Capital University of Economics
Course: Finance
Keywords: The intergovernmental fiscal transfer payment Financial equalization Basic public services
CLC: F224
Type: Master's thesis
Year: 2008
Downloads: 288
Quote: 1
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Abstract


Constantly opening up as a big country, China’s economic development in recent years has scored spectacular achievements. However, the growing gap in regional development has become a constraint of the further stable, healthy, and coordinated development of China’s economy. Gradually reversing the trend of expansion in different areas and promoting coordinated regional development relate not only to modernization as a whole, but also to the social stability and the country’s long-term stability. Non-financial equalization becomes the bottleneck of a balanced development of all regions.Intergovernmental transfer payment system is an effective way to achieve financial parity and promote the coordinated development of the region. So, the profound understanding for the function of the current intergovernmental transfer payment system promoting the coordination of inter-regional financial equalization of the status quo, finding the shortcomings in transfer payments and the crux which hindering the development of inter-regional balance, re-construction of the new transfer payment system, and providing a good, impartial development platform for the region are the priority tasks of the Government in the framework of public finance.Firstly, this paper illustrates the significance of this research and summarizes both at home and abroad the research status about the intergovernmental transfer payments, then brings forward the point of innovation. Secondly, this paper introduces some concept related to the government transfer payments, and talks about the effect of transfer payments, as well as the role of intergovernmental transfer payments for the financial equalization. Additional, this paper illustrates the status. Section 4 uses empirical method to analyze the difference both in regional financial resources and basic public services and the financial results of equalization. This paper applies factor analysis for the difference of basic public services among the region. This method is used by many scholars to measure the competitiveness of the region, but its application in the provision of basic public services difference is rarely seen. Several conclusions: the effect of intergovernmental transfer payment system solving the financial imbalance between vertical and horizontal financial imbalances is significant, but in the provision of basic public services there exists a big difference. Section 5 argues the existing problems on the intergovernmental transfer payments. Finally, there makes some suggestions.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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