Research on the Influence of Fiscal Decentralization on the Return Rate of China’s Real Economy

Based on the panel data of 30 provinces from 2000 to 2020, this paper empirically analyzes the impact of local fiscal decentralization on the return rate of China’s real economy from two dimensions, that is, income decentralization and expenditure decentralization. It is found that income decentralization and expenditure decentralization can improve the overall real economic return rate with heterogeneity in different regions. The empirical results in the central region are consistent with the core conclusions, and the regression results of expenditure decentralization in the eastern and western regions are significant, while income decentralization is not significant. With industrial structure affecting the role of fiscal decentralization, the more advanced the industrial structure, the greater role of fiscal decentralization in promoting the return rate of the real economy