The Fiscal System Reform on Direct Province Control of Counties,Counties' Economic Growth and the Overcome of Fiscal Difficulties

Using a large county-level dataset from 1997 to 2005,this paper explores the effects of the reform of province governing county fiscal system on counties' economic growth and fiscal difficulties.The results suggest that:(1) the province governing county fiscal system reform helps mitigate counties' fiscal difficulties but has a negative effect on economic growth;(2) revenue decentralization helps improve such effects,while the reform of"chexiang bingzhen"and a greater size of fiscally supported population have the opposite role.