An Empirical Study on the Supply Efficiency of Local Public Goods in China
LI Jian-jun, ZHANG Chen-xin
1.School of Public Finance, Southwestern University of Finance and Economics, Chengdu 611130, China; 2.Accounting School, Shijiazhuang University of Economics, Shijiazhuang 050031, China
Abstract:
Based on Chinese provincial panel data during the period 2003-2008, this paper empirically analyzes the supply efficiency of local public goods and its influence factors. It is found that the average efficiency of local public goods supply is about 0.9, with a room of 10% to improve. The supply efficiency of local public goods can be improved by increasing resident income, raising the proportion of transfer payment and extra-budget revenue, economic openness. However, the enhancement of population density and education level is helpful for a improved the efficiency.