关键词: 中国财政分权度指数（CFDI）；动态面板模型；GMM方法；倒&ldquo, U型&rdquo, 关系

Abstract:

The measurement of fiscal decentralization has been one of main problems of empirical research on the fiscal decentralization. Based on the World Bank’s definition of fiscal decentralization, this paper describes fiscal decentralization from three dimensions, which is the allocation of taxation right, separation of revenue and expense as well as the dependence between center government and local government. It makes the first index reflecting the division of fiscal relationship between two levels governments-- Chinese fiscal decentralization index (CFDI). The result shows that CFDI presents a trend of down first and then up, from 49.94 in 1995 to 48.06 in 2014, which indicates the financial power of local governments have been taken back since the reform of taxation system in 1994, and decentralized in recent years. In the empirical analysis, through our dynamic panel model and GMM method, it finds that there is a inverted "U" relationship between CFDI and economic growth significantly, which means when the CFDI is below 35.68, fiscal decentralization is good for economic growth, while when CFDI is above 35.68, further decentralization inhibits economic growth. At the same time, it also finds there is a significant negative correlation between CFDI and the income gap, which means the expansion of fiscal decentralization will improve the degree of income equality.

Key words: Chinese Fiscal Decentralization Index (CFDI);Dynamic Panel Model;GMM Method;Inverted "U", Relationship