Abstract: The research of fiscal decentralization is based on the reconstruction of measurement index. In view of the combination of fiscal decentralization principles and its reality in China, the paper devises seven measurement indexes of fiscal decentralization, makes an empirical analysis of their corresponding effects on economic growth, and estimates the economic effect of the fiscal decentralization reform in counties directly administered by province. The paper gives support to the significance of revenue and expenditure decentralization within the system and gives decision-making power to county-level governments. However, the contribution of full-covered measurement index of fiscal decentralization to the economic growth is not ideal. Therefore, it is urgent to endow the county-level governments with financial resources and decision-making power within system, to tighten the control of their non-budget financing, and to intake the counties administered by province into the new type of fiscal system featuring the match of financial power and responsibility.
Keywords: Fiscal Decentralization, Measurement Index, County Government Finance, Economic Growth, County Directly-Controlled by the Province
source:Finance & Trade Economics ,No6,2014