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.
Highlights
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
According to the variables selected by the three explanatory layers, we assume that there is a linear relationship between variables, and we establish a multiple regression model to verify the impact of each variable on the fiscal extractive capacity of prefecture-level cities
The regression result in (6) shows that the degree of fiscal expenditure decentralization has a positive effect on the fiscal extractive capacity of 21 prefecturelevel cities
Summary
Government revenue is the financial guarantee for the government to perform its functions and maintain the long-term peace and good order of the country. According to the data from statistical yearbook of Guangdong province, since we followed the policy of reform and opening, China’s total government revenue has increased from 113 billion 236 million yuan in 1978 to 140,350 yuan in 2015. As the province who has the largest economic aggregate of China, Guangdong has achieved the general budget revenue of 936 billion 476 million yuan in 2015. The 18th CPC National Congress’s strategic arrangement for deepening the reform strategy in an all-round way and progressive implementation of accelerating the transformation of government functions, has loomed the significant importance of local governments to provide public services.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
