Abstract:
Fiscal absorbing capacity is an essential part of national capacity, whose
shortcoming would drive local governments to raise capital through nonstandardized
channels. Thus causing a negative effect on national governance.
The paper would define fiscal absorbing capacity in three aspects, including
fiscal absorbing scale, fiscal absorbing autonomy and fiscal absorbing efficiency,
and would make measurement and empirical analysis on the fiscal absorbing
capacity in seven megacities from 2008 to 2014 by adopting fixed effect
model combined with factor analysis, the result of which shows that reverse
change trend exists in municipalities and prefecture-level cities of megacities
with over ten million population, and that fiscal expenditure decentralization,
economic factor and demographic factor all have significant effect
on fiscal absorbing capacity. Therefore, powers of finance and duties reasonably
divided among megacities should be put forward to promote the optimization
and upgrading of industrial structure; and the financial guarantee of
municipal governments in megacities should be strengthened through reforms
of transfer payment system and household registration.
