Author(s)

He Chongqi

Corresponding Author

He Chongqi

Abstract

As one of the important financial instruments, transfer payments should play the role of stabilizing the economy. Based on the county-level total transfer payment data from 2000 to 2009 in minority regions, this paper empirically studies the impact of fiscal transfer payments, tax returns, the original system subsidies and special transfer payments on the stability of financial revenues and expenditures in minority regions. The results show that fiscal transfer payment has a significant positive effect on the stability of local financial revenues and expenditures at the county level in minority regions; Tax returns and the original system of subsidies have no significant effect on the on the stability of local financial revenues and expenditures at the county level in minority regions; The special transfer payment has a significant effect on the stabilizing county level financial revenues in minority regions, but has no obvious effect on the stabilizing financial expenditures. In order to further enhance the stability effect on the transfer payment, we should improve the transfer payment system that combines the financial transfer payment with the special transfer payment, and appropriately increase the proportion of the two methods.

Keywords

Minority regions, Transfer payment, Financial revenue, Financial expenditure, Stability effect.