Does the Fiscal Reform of Province Governing County Promote County Grain Production?Evidence from a Quasi-Natural Experiment
Based on the county-level panel data from 2000 to 2020,this paper estimates the impact of the fiscal reform of province governing county on grain production using the staggered Difference-in-Differences(DID)method.The study finds that the fiscal reform of province governing county significantly boosts county grain production.By enhancing the financial governance capacity of county-level governments,the fiscal reform of province governing county leads to the increases of grain crops planting area,agricultural machinery level,and fertilizer usage as well as other production factors allocation mechanisms,and strengthens the distribution mechanism of provincial government's attention to grain,thus promoting county-level grain production.Heterogeneity analysis shows that the effect of the fiscal reform of province governing county on increasing grain production is more pronounced in non-"Strengthening County and Extending Power"pilot counties,economically underdeveloped counties,financially weak counties,major grain producing areas,and major grain producing counties.The longer the implementation of the fiscal reform of province governing county is,the more significant the grain yield increase effect is.This paper has expanded the literature on the effects of fiscal reform of province governing county,providing empirical evidence and decision-making directions for deepening the reform of the sub-provincial fiscal system and maintaining national food security in the new stage.It is supposed to moderately enhance the ability of provincial-level financial coordination and regulation,gradually optimize the implementation scope and methods of county-level financial reform under provincial direct management,reasonably divide the financial powers and expenditure responsibilities of provincial-level and county-level governments,and enhance the financial governance capacity of county-level governments in ensuring food security.
Fiscal Reform of Province Governing CountyGrain ProductionFiscal RelationProduction Factor Allocation