Fiscal Decentralization and Regional Economic Growth - An Empirical Analysis of Gansu 66 counties (cities) Panel Data REVIEW : Papers 2001-2008 through the use of Gansu 66 counties (cities) of the panel data, focusing on the impact of test-provincial fiscal decentralization on economic growth in the county, was found below the provincial revenue impact of decentralization on economic growth for the county negative, below the provincial expenditure decentralization and fiscal self-sufficiency rate of decentralization has a positive impact on economic growth in the county. At the same time test the fiscal decentralization on high GDP per capita, the impact of two different regions of low economic growth in sub-samples, the study also supports the subsample of financial self-sufficiency rate below the provincial decentralization has a positive impact on the county (city) economic growth view decentralization below the provincial expenditure per capita GDP higher county (city) economic growth positively correlated with per capita GDP lower county (city) economic growth negatively correlated with income below the provincial fiscal decentralization is conducive to higher per capita GDP county (city) economic growth. Paper Keywords: fiscal decentralization, economic growth, panel data First, the introduction of fiscal decentralization, the angle of intergovernmental fiscal relations, means defining the scope of the revenue and expenditure levels between central government and local governments through the standardization of legal form, giving local governments greater budget management authority, Its core is to make local governments have more financial autonomy. Fiscal decentralization reform in China began in the mid-1980s, the reform process is reflected in a gradual and phased unity. Prior to 1980, the basic characteristics of Chinas financial management system is highly concentrated, almost pass through income support. Under this system, the financial differences between regions, though more on average, but the lack of autonomy of local government finances, the impact of their enthusiasm to play, and thus hinder the improvement of regional economic development and welfare of the residents. 1980s division revenue, grading lump sum, 1985s division of taxes, approved payments, lump sum classification and forms the 1988-1993 fiscal responsibility system in place to some extent, the expansion of the local government on local taxes control over income. 1 In 1994, the central government has fiscal reform of the tax system, regulate the central and local revenue sources, realized from the total fiscal decentralization to the tax category decentralization of fiscal decentralization, fiscal management system in China The fundamental change. In summary, fiscal decentralization reform throughout the entire process of economic reform, the results of local government reform to strengthen the regulatory capacity of the local economy, to achieve a double economic growth and fiscal revenue. Previous studies have mainly focused on the financial allocation between the provincial government and the central government, and for the study of fiscal decentralization below the provincial economic impact effect on the countys extremely uncommon. In this study, Gansu Province, 66 counties (cities), for example, the impact of empirical effects of fiscal decentralization below the provincial county (city) economic growth, generally speaking, below the provincial revenue decentralization on economic growth in cities and counties have a negative effect fiscal decentralization and financial self-sufficiency rate of expenditure decentralization of cities and counties have a positive impact on economic growth effect; Further studies showed that the provincial fiscal decentralization on economic growth following the direction and extent of the effect of different degrees of counties and cities in developed economies differ, government In implementing fiscal decentralization policy should be treated with caution. The result is undoubtedly an important reference for the underdeveloped provinces in-depth implementation of fiscal decentralization policy. Second, the relationship between literature review of fiscal decentralization and economic growth is one of the major issues in the field of fiscal decentralization theory, attention has long been subject to domestic and international academia. Xie, Zou and Davoodi (1987) constructed an endogenous growth model with different levels of government spending, the use of US states and the federal government at the local level data and empirical analysis, the conclusion is: the existing state and local governments The share of expenditure is consistent with maximizing economic growth and further decentralization of public spending could hurt economic growth. 2 Oates (1993) on the basis of endogenous growth theory in the discovery, fiscal decentraliz