The Study on Difference of Regional Development and Its Causes in China's Basic Public Services

This paper adopts factor analysis to analyze the development level of China's basic public services from the year 1978 to 2006, then to probe into the regional differentiation and its causes of basic public services. The results further show that the level of basic public services will always be in non-equilibrium state in china's inter-regions, among where, the degree of non- equilibrium of economic basic public services is more serious, while of social basic public services is enhancing. Therefore, Policy formulation should be used to enhance the efficiency of transfer payment fund, gradually reduce negative effects of excessive pursuit of GDP, stepwise reduce or even ultimately eliminate the incentive for local government to pursue the tax rebates of aggregate economy or subsidies within the original system.