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Research on the Relationship between Fiscal Decentralization and Regional Economic Development

Xinyuan Wang

Abstract


Fiscal decentralization refers to the transfer of certain fiscal powers and responsibilities from the central government to local governments, granting local governments greater autonomy in fiscal revenue and expenditure, budget management, and tax policy. This paper
explores the impact of fiscal decentralization on regional economic development, analyzing its advantages and disadvantages, and proposes
suggestions for further optimizing the fiscal decentralization system. Through a review and analysis of relevant literature, this paper finds that
fiscal decentralization plays an important role in promoting regional economic development, optimizing resource allocation, and improving
the quality of public services. However, it also faces challenges such as regional development imbalances and increased management difficulties. To achieve more balanced regional economic development, it is necessary to further improve the fiscal decentralization system and
strengthen coordination and cooperation between the central and local governments.

Keywords


Fiscal Decentralization; Regional Economic Development; Public Services; Resource Allocation; Policy Recommendations

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References


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DOI: http://dx.doi.org/10.18686/fm.v9i5.13375

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