Local Governance Capacity from A Fiscal Perspective: Index Measurement and Influence Mechanism

Abstract

To improve the governance ability and promote the modernization of governance ability, the key lies in improving the governance ability of cadres. Based on the financial perspective, this paper uses the data of 31 provinces, municipalities and autonomous regions in China from 1999 to 2017 to evaluate the local governance capacity with DEA, and then uses the Tobit panel model to analyze the influence of the personal characteristics of officials on the local governance capacity from the perspective of official characteristics. The research shows that characteristics such as whether local government officials are promoted or not and promoted within one year after taking office can significantly improve local governance ability, while characteristic variables such as master's degree and political corruption have significant negative effects on local governance ability. Further research shows that the influence of official characteristics on governance ability is different between the eastern and central and western regions, and the influence of official characteristics on governance ability is not obvious about the change of official assessment system. The conclusion of the study provides a new way of thinking for promoting the modernization of governance capacity and has important practical significance for optimizing the governance and assessment mechanism of officials in China.