Transfer Payments and Regional Total Factor Productivity: Evidence From China
Through theoretical analysis and empirical test, the following conclusions are drawn: Firstly, the benchmark test proves that transfer payments (TPs) significantly promote regional TFP. Secondly, the conclusions of this paper are still valid after using the system GMM model and instrumental variable...
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| Format: | Article |
| Language: | English |
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Wiley
2024-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2024/8045857 |
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| _version_ | 1850175222583394304 |
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| author | Zhiwei Cao Baijun Wu Sha Liu |
| author_facet | Zhiwei Cao Baijun Wu Sha Liu |
| author_sort | Zhiwei Cao |
| collection | DOAJ |
| description | Through theoretical analysis and empirical test, the following conclusions are drawn: Firstly, the benchmark test proves that transfer payments (TPs) significantly promote regional TFP. Secondly, the conclusions of this paper are still valid after using the system GMM model and instrumental variable method to deal with the endogeneity problem. Thirdly, heterogeneity analysis shows that TPs have a greater impact on TFP in the central and western regions, and general TPs and special TPs significantly promote regional TFP. Fourthly, mechanism analysis shows that TPs promote regional TFP through two channels: narrowing the financial gap between local governments and reducing the vertical fiscal imbalance between central and local governments. Because the balanced distribution of financial resources means the effective supply of public goods, all regions have the conditions to optimize the allocation of resources and improve the efficiency of resource use. Based on this, it is still necessary to implement the TPs system. Also, there is a need to optimize the TP rules. |
| format | Article |
| id | doaj-art-827d9f03f14a4ca894bd47d29ff8e348 |
| institution | OA Journals |
| issn | 1099-0526 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-827d9f03f14a4ca894bd47d29ff8e3482025-08-20T02:19:30ZengWileyComplexity1099-05262024-01-01202410.1155/2024/8045857Transfer Payments and Regional Total Factor Productivity: Evidence From ChinaZhiwei Cao0Baijun Wu1Sha Liu2School of Economics and ManagementSchool of BusinessSchool of Economics and ManagementThrough theoretical analysis and empirical test, the following conclusions are drawn: Firstly, the benchmark test proves that transfer payments (TPs) significantly promote regional TFP. Secondly, the conclusions of this paper are still valid after using the system GMM model and instrumental variable method to deal with the endogeneity problem. Thirdly, heterogeneity analysis shows that TPs have a greater impact on TFP in the central and western regions, and general TPs and special TPs significantly promote regional TFP. Fourthly, mechanism analysis shows that TPs promote regional TFP through two channels: narrowing the financial gap between local governments and reducing the vertical fiscal imbalance between central and local governments. Because the balanced distribution of financial resources means the effective supply of public goods, all regions have the conditions to optimize the allocation of resources and improve the efficiency of resource use. Based on this, it is still necessary to implement the TPs system. Also, there is a need to optimize the TP rules.http://dx.doi.org/10.1155/2024/8045857 |
| spellingShingle | Zhiwei Cao Baijun Wu Sha Liu Transfer Payments and Regional Total Factor Productivity: Evidence From China Complexity |
| title | Transfer Payments and Regional Total Factor Productivity: Evidence From China |
| title_full | Transfer Payments and Regional Total Factor Productivity: Evidence From China |
| title_fullStr | Transfer Payments and Regional Total Factor Productivity: Evidence From China |
| title_full_unstemmed | Transfer Payments and Regional Total Factor Productivity: Evidence From China |
| title_short | Transfer Payments and Regional Total Factor Productivity: Evidence From China |
| title_sort | transfer payments and regional total factor productivity evidence from china |
| url | http://dx.doi.org/10.1155/2024/8045857 |
| work_keys_str_mv | AT zhiweicao transferpaymentsandregionaltotalfactorproductivityevidencefromchina AT baijunwu transferpaymentsandregionaltotalfactorproductivityevidencefromchina AT shaliu transferpaymentsandregionaltotalfactorproductivityevidencefromchina |