财税与公共管理学院知识库

       Industrial Development has always been a major concern of the Party and the state. The report of the 19th National Congress of the Party pointed out that, we must “Unswervingly implement the new concept of development, resolutely correct the concept of development, change the development model, and continuously improve the quality and efficiency of development. We should support the optimization and upgrading of traditional industries and accelerate the development of modern service industries”. Especially from 2020 to the present, the outbreak of new crown disease has brought inestimable consequences to the economic development. How under the policy coordination, uses the financial means, the optimization our country’s industrial structure, is at present needs to consider the question.

   Based on the existing research, this paper selects the provincial panel data from 2010 to 2019, takes the financial expenditure index as the core explanatory variable, takes the industrial policy as the impact explanatory variable, takes the industrial structure optimization as the explanatory variable, and selects the control variable, the fixed effect panel model and dual difference model are used to study the relationship between fiscal expenditure and industrial structure optimization in China. Through empirical analysis, it is found that: first, the increase of per capital fiscal expenditure and the proportion of fiscal expenditure in GDP can significantly promote the optimization level of China’s industrial structure, and the optimization effect on the industrial structure of the Eastern Region is the best, the effect on the optimization of industrial structure in western China is relatively minimal. Financial self-sufficiency rate and fiscal decentralization have significant negative effects on the optimization of regional industrial structure. Second, only considering the industrial policy, it has a positive effect on the level of 1% significance in the eastern and central regions, which shows that the policy has a better effect on the industrial structure. The positive effect on the western region is not significant, which shows that the “One-size-fits-all”industrial policy-making in China may have the opposite effect on the expected effect of policy. Thirdly, when the effect of policy is considered in the fiscal expenditure, it is found that the effect of fiscal expenditure on the optimization of industrial structure is better than before, but the effect of industrial policy is not significant at this time, that is, policy only plays an auxiliary role in the optimization of industrial structure, but mainly depends on the positive effect of fiscal expenditure on it. But on the whole, under the impact of industrial policy, the positive effect of fiscal expenditure on the optimization of industrial structure in the central and western regions is obviously increased, and the negative effect is basically weakened.

    According to the empirical analysis of the relationship between fiscal expenditure and industrial structure optimization, this paper puts forward the following suggestions: first, we should moderate the scale of fiscal expenditure among regions to adapt to the development of industrial structure. We should give full play to the functions of the government and better play the role of the market in the allocation of resources. Second, the central and local financial resources should be rationally allocated to improve the efficiency of the use of funds. It is necessary to clarify the financial functions of governments at all levels, overcome the obstacles of financial system, and promote the optimization and upgrading of China’s industrial structure. Third, we should formulate industrial policies among different regions to develop the regional advantage industries. The economic development level, cultural environment and natural resources should be taken into account, and industrial policies should be formulated to give full play to the regional advantages and maximize the value of regional resources.Fourth, we should strengthen the coordinated development of fiscal policy and industrial policy. The combination of financial policy and industrial policy, give full play to the policy effect, better promote the optimization of China’s industrial structure.