Abstract
This article explores the fiscal decentralization factors that affect government spending on public culture services in two main points—imbalance in revenue power and spending responsibility and promotion tournament by using provincial panel data from 1997 to 2015 in China. The results yield three noteworthy findings. First, fiscal decentralization in spending responsibility significantly reduced the proportion of government spending on public cultural services to government spending. The public financial self-sufficiency has a significant positive effect on the ratio of public cultural expenditure and public spending. Second, the coefficient of transfer payment is significantly negative, namely, the current transfer payment in China cannot increase the proportion of public cultural expenditure effectively. Third, the coefficient of government official promotion competition has also a significantly negative effect on public cultural spending. This research contributes to the literature in several ways, most notably by incorporating a more open-systems approach to the study of government spending on public culture services with the inclusion of several fiscal decentralization variables.
Highlights
Model 2 is to verify the relationship between government competition and fiscal decentralization to the proportion of public cultural expenditure
This model focuses on three explanatory variables: per capita GDP, fiscal decentralization, and government competition
Model 3 further introduces other control variables on the basis of model 2, such as government per capita transfer payments, government burden and other control variables. It continues to test the effects of fiscal decentralization and government competition on the proportion of public cultural spending
Summary
Public cultural facilities (such as library, museum, memorial, art museum and cultural center etc.), cultural products, cultural activities and other related cultural services are very important deliveries for government to meet the public’s. It’s important for every level government with authoritative higher legal form to make sure growth rate of budget of public cultural services at all levels, the proportion between the central and local government cultural expenditure [7] [11] [13]. Despite this recognition, researchers in China predominantly describe the phenomenon in government cultural spending, and lack of in-depth analysis. There is a positive practical significance for effectively optimizing the allocation and utilization of public financial resources in the field of culture and maximizing the effectiveness of limited financial resources
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