The Differences and Main Sources of Inter-Provincial Budget Expenditure Structure
- YAO Dongmin, GAO Qiunan & ZHAO Jiangwei & XU Yixuan
- YAO Dongmin, GAO Qiunan & ZHAO Jiangwei(Central University of Finance and Economics, 102206)XU Yixuan (Renmin University of China, 100872)
From the two perspectives of intuitive expression and dynamic change, this paper finds obvious differences in the budget expenditure structure of different provincial governments in China. In order to explore the main sources of the differences in the inter-provincial budget expenditure structure in China, based on the typical facts of the above differences and the conclusions of relevant public financial theory and the existing literature, this paper, based on regression equation, decomposes the differences from four dimensions namely the local financial situation, the local economic situation, the characteristics of officials and expenditure targets. The main findings are as follows: the expenditure decentralization and local financial resources reflecting the local financial situation have been the main sources of the differences in the inter-provincial budget expenditure structure. In a specific period, the main sources of the differences also include the urbanization and marketization which reflect the local economic situation, as well as the population density and the years of education per capita which reflect the characteristics of expenditure targets, and the characteristics of officials. A feasible strategy to optimize the structure of fiscal expenditure in China is to make steady changes to the expenditure decentralization and local financial resources and flexible adjustments to urbanization and marketization.
JEL：H61, H71, R12
- Budget Expenditure, Structural Difference, Provincial Government, Shapley Value Decomposition