Abstract The economy of the six provinces of mid-China has a rapid development after the rise-planning of the central region. Meanwhile, the fiscal spending of the six provinces of mid-China is expanding continually. The author is concerned with whether the fiscal spending can achieve the macro-scale efficiency. This article, taking Henan Province as an example, employs a co-integration analysis by using production function, leading into four variables including fiscal spending and economic growth. The result shows the optimal scale of Henan Province's fiscal spending should be at 29.94 percent of the GDP of Henan Province. However, the fiscal spending scale of Henan Province is inadequate at all. So the central region needs the central government to increase the “equalization” transfer payments so as to strengthen the local finance.
YAN Jiang. An Analysis on the Scale Efficiency of the Central Region’s Fiscal Spending ——Taking the Case of Henan Province as An Example. Economic Survey, 2014, 31(5): 0134.
2014, Vol. 31 
