Tax Sharing Reform,Governmental Intervention and the Efficiency of Financial Development
YIN Xi-guo,CHEN Gang,PAN Yang (College of Trade & Administration,ChongQing University,ChongQing 400044,China)
This paper is focused on whether local government’s behavior on financial intermediations has changed after tax sharing reform in 1994. We take for that because of the separation of local government’s fiscal income and expenditure. The local government is faced with heavy fiscal load,which gives rise to its intervention to local financial intermediations. Furthermore,local government’s intervention brings about the inefficiency of financial intermediation’s credits. The empirical analysis convincingly supports the views above. The study indicates that taking finance,fiscal,and government systems into a uniformly reformational framework could reduce the friction costs of institutional transition.
【CateGory Index】： F812.42