Development of Intergovernmental Financial Relationship:International Comparison and Inspiration

Abstract

By comparing the development of some typical nation's intergovernmental financial relationship,the decentralized states are on the way to centralization,while the centralized states are going to the opposite.The factors include the political system,the process of industrialization and the growth of market.China's intergovernmental financial relationship should be based on our political system,modest centralization and modest decentralization and asymmetric allocation of powers and responsibilities,to ensure the dominance status of the central finance and full exercise of the local governments.