Fiscal Decentralization,Land Finance and Public Goods Provision——Empirical Evidence from Chinese 35 Cities

Abstract

The article builds public goods provision comprehensive evaluation index,using the two-step system GMM estimation method,based on the Chinese city dynamic panel data to analyze the impact of fiscal decentralization and fiscal on public goods provision.The results show that land finance significantly reduces the quality of public goods provision,while fiscal decentralization helps to improve the quality of public goods provision.Further study found that the land finance promotes the economic public goods provision.But it has an obvious inhibitory effect on the economy of non-economic public goods provision.In addition,land finance impact on the public goods provision significantly differs from spatial and temporal,land finance promotes the east public goods provision increased,and then decrease the public goods provision in the central and western regions; As the land clinch a deal the price increased dramatically,land finance the negative impact on the public goods supply has improved significantly in 2004.