Abstract
The starting point of the fiscal decentralization theory is the efficiency of public goods supply. As one of the major public investment projects of the government, science and technology investment has a great impact on the development of the country and the people’s life. Therefore, based on the practice of Chinese fiscal decentralization, this paper tries to reveal the effect of fiscal decentralization and local government’s behavior preference on science and technology investment efficiency by normative analysis. Through research, it has been found that technology investment requires a huge amount of money and time to produce results. So it is not easy to achieve results in the short term. Under Chinese-style fiscal decentralization, the lack of institutional constraints and reasonable officials’ assessment indicators has led to the alienation of local government’s behavior preference and the loss of the efficiency of science and technology investment.
Highlights
History shows that the revolution of science and technology can have a profound influence on the world development pattern
Based on the practice of Chinese fiscal decentralization, this paper tries to reveal the effect of fiscal decentralization and local government’s behavior preference on science and technology investment efficiency by normative analysis
It has been found that technology investment requires a huge amount of money and time to produce results
Summary
History shows that the revolution of science and technology can have a profound influence on the world development pattern. Scholars’ research shows that under the background of China’s fiscal decentralization system, governmental actions such as “Government Competition” and “Championship of Officials’ Promotion” based on GDP assessment have significantly promoted the supply of economic public goods and restrained the supply of non-economic public goods. These have led to the distortion that Chinese local governments emphasize on infrastructure while reducing human capital investment and public services. The research method of classifying science and technology investment into non-economic public goods may obscure the true mechanism of the effect of fiscal decentralization and government’s behavior preferences on the efficiency of science and technology investment.
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 call
