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Is Fiscal Transfer Payment “Blood Transfusion” or “Blood Making”? ——An Empirical Study Based on the State-Designated Poverty-Stricken Counties
Author(s): 
Pages: 22-39
Year: Issue:  6
Journal: Finance & Trade Economics

Keyword:  Fiscal Transfer PaymentPoverty-Stricken CountiesThe Effect of Poverty Alleviation;
Abstract: This paper takes the state-designated poverty-stricken counties as the research object, from the income angle, expenditure angle and objective result angle, and systematically studies the influence of net transfer payment and all kinds of transfer payments on the "blood-making" ability of poor areas. The main conclusions are as follows: Firstly, the fiscal transfer payment has the effect of "blood transfusion" and "blood-making", and local fiscal expenditure is conducive to improving its own "blood-making" ability. Secondly, fiscal transfer payments can effectively stimulate local economic development and increase local fiscal revenue and the total mechanical power used by farmers in poor areas. The overall effect of fiscal transfer payments is better. Thirdly, relatively poor areas have stronger "blood-making" ability, and fiscal transfer payments are more inclined to "blood transfusion" in extremely poor areas. In view of the research conclusions, the paper holds that the government should prioritize and guarantee the level of financial transfer payment support in poor areas. At the same time, we should refine the management of financial transfer payment funds and improve the use efficiency of financial transfer payments. Secondly, in terms of the transfer payment structure, the proportion of special transfer payments should be guaranteed in order to accurately achieve the poverty reduction goals set by the higher levels of government. Finally, differentiated policies should be adopted for poor areas to improve not only the "blood transfusion" but also "blood-making" ability of financial transfer payments.
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