The Effect of Local Fiscal Expenditures on Population Migration

Abstract

The paper takes the data about population migration of China’s fifth and sixth population census and the 1% population sample survey in 2005 as the sample, using the individual fixed effect model to test Tiebout Model, and the result shows that the differences in local fiscal expenditures play an important role in China’s interprovincial population migration, the number of immigration increases with the increase of the fiscal expenditures in the immigrant areas, but the role in the developed regions is less than general regions, compared with the productive fiscal expenditures, the differences in the livelihood expenditures have greater effect on population migration.