1. Effect of central - local financial relations on regional business environment -- Fuzzy-set qualitative comparative analysis
- Author
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Wang Junli and Li Jianjun
- Abstract
Regional business environment is the core institutional environment of protecting the vitality of the main market and pushing forward high-quality economic development. The central-local financial relation division is of great significance for arousing the initiative of the central and local governments, regulating the structure of government functions, and the relation of the government and the market. This paper studies influence of the groups resulting from the integration of six key elements of the central-local financial relations on the business environment using fsQCA (fuzzy-set qualitative comparative analysis) method. Our main findings show that there are five patterns of groupings causing the high business environment. The groups of low business environments are characterized by low financial autonomy and partial or total absence of financial and administrative powers. This paper also explores the feasibility of QCA method for research in the field of finance and taxation. Moreover, it shows that the matching of the financial and administrative powers, and a higher degree of financial autonomy, is the key factor to create a high-level business environment. The study provides a theoretical basis of further reform and reconstruction of China’s financial system.
- Published
- 2023
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