| Abstract: | Local governments are constantly disturbed by land finance about the supplying effectiveness of basic public services. With the steady deepening of the financial reform, this disturbance has reverse effect on the local government reform process. Through literature review of existing land finance and public service, this research constructs the relational theory model of land finance and product supply of basic public services, in order to theoretically interpret the relations between land finance and economic or non-economic public service products, for better distinction. With the aid of random and fixed effect model regression analysis, this paper clarifies the significant impact of land transfer and financial autonomy for the supply of basic public services. Furthermore, with the robustness test, it is found that increasing land finance basic public service provision would generate negative external tropism. Therefore, we suggest proper adjustment of the relationship between the central and local land fiscal configuration, optimizing the structure of land tax, enhancing fiscal autonomy of local governments, and promoting the reform of land finance, for the effectiveness of basic public service provision. |
