The Impact of Fiscal Transparency on The Level of Administrative Expenditure

Fiscal transparency is an important measure to improve the level of government governance and realize the modernization of national governance system and governance capacity. Taking the panel data of 31 provincial governments from 2007 to 2016 as samples, this paper empirically analyzes the impact of financial transparency on the level of local administrative expenditure. The study found that improving fiscal transparency will significantly reduce the level of administrative expenditure of the government. Heterogeneity analysis found that the impact of areas with a higher level of economic development is more prominent. After a series of robustness tests, the conclusion is still valid. The existing research mainly examines the economic consequences of financial transparency from the perspective of economy and governance structure, and lacks the analysis of the impact on the level of local government administrative expenditure. This paper enriches the research of financial transparency, and has policy reference value for local governments to further improve the level of local administrative expenditure.