Abstract

In theory，a country’s industrialization always needs a certain population to be engaged in agricultural production. The presence of agricultural areas do not conflict with their industrialization and agricultural areas are not a corresponding concept with the traditional agricultural civilization，agricultural modernization and regional economic industrialization can absolutely be unified. However，in the early stages of social transformation，managing agriculture can hardly obtain the average profit margin of society，so it is difficult for the agricultural sector to attract capital and labor or other economic factors，the comparative advantage agricultural areas should have for their engaging in agricultural production will no longer exist；under the current revenue-sharing conditions，agricultural areas can hardly obtain sufficient revenue. That is the intrinsic motivation of agricultural areas‘local governments’ industrialization impulse，it can be said that the intergovernmental competition condition has forced the governments of agricultural areas to promote the industrialization of the region，and the current decentralized fiscal system has exacerbated this industrialization impulse. However，in the traditional agricultural areas，the traditional farming culture，the food security of the whole country，the red line of 18 million hectares of arable land，the rising labor costs and the environmental and resource factors all constitute the limiting factors of the process of industrialization in traditional agricultural areas，and the current financial system exacerbated the difficulty of industrialization in traditional agricultural areas. It can be said that the industrialization in agricultural areas has not been easy.

No matter the transformation from nomadic civilization（gathering and hunting civilization）to farming civilization，or the conversion from agricultural civilization to industrial civilization，or the evolution from industrial civilization to information civilization，the great leaps of the society are all combined with the revolution of the financial system. From “Gongfu” to “Dingyi”，from land taxes and poll taxes to industrial and commercial taxes，from kind levy to currency levy，the forms and channels of taxation evolved with the progress of human production；viewing from the ankle of the fiscal expenditure，from spending in “private” use（royal palace）to expenditures in “public” use（infrastructure and social security），and to influence the macroeconomic，fiscal reformation has always being carried out. Studies have shown that industrial restructuring must be accompanied with a reformation of the financial system，that income used to be taken from the “agriculture” should now be taken from the “industry”，and wealth used to be taken from the “village” should be taken from the “city”；expenditures on the “workers” should be transited to support the “agriculture”，aids to“city”should be distributed to “village”；during this progress the public orientation of finance will become increasingly prominent，industry and agriculture，urban and rural will hold equal rights and obligations in fiscal revenue and expenditure，and different economies and the crowd can enjoy the same national treatment as taxpayers.

Competition in the local government means that each jurisdiction takes the appropriate public policy in order to maximize the benefits of the local and competitive process to compete for limited economic resources. Central government，local governments and different levels of local government will inevitably compete with each other in order to maximize pursuit in public goods. Most of the existing literature regarded financial competition is divided into three types：horizontal fiscal competition，vertical fiscal competition and yardstick competition. Competition depends on the interests of the interaction between the main competition in the Chinese government，including officials promoted competition，promote public vote with their feet，the fiscal property rights，taxes remaining and investment impulse. Under the control of the central government，the competition of Chinese local government are limited competition，means of competition and the choice of ways to independent space is larger，competition in the system combined with outside the system，the orderly competition with disorderly competition co-exist. Financial competition as the core competition by the Chinese government，including taxes exemption and reduction，output and financial return of the taxes burden and expenditures competition. Government’s competition will inevitably lead to the government’s industrialization of the agricultural areas impulse，this impulse is a reasonable economic aspirations，in order to achieve the path innovation of competitive government and agricultural industrialization，the key is to ensure the orderly nature of the competition.

whether it is a federal state or a unitary state，modern market economy country decentralize the taxes sharing system. Since the 1970s，fiscal decentralization has been the focus of the field of public finance，The fiscal expenditure responsibilities in the mature market economy countries and transition developing countries have their own characteristics. The United States，Britain，Japan and other developed Western countries provide a good reference in level intergovernmental taxes privileges and taxes range for China. The positive effect about fiscal decentralization，including resource configuration capabilities and economic growth，causing public investment function with economic growth，hardening budget constraints and to improve the efficiency of local businesses and economic growth，the introduction of competition and institutional innovation mechanisms and economic growth，and the industry caused by the taxes competition between the local government. The taxes system under the current fiscal decentralization，the transfer payment system and taxes refund system. All mean that，in order to get more taxes revenue，the local government must build industrialization system. It is can be said that，the fiscal decentralization of public economic environment caused the local government industrialization. Reform the current financial system to promote the economic development of the agricultural areas is a top priority.

China’s current financial system is the public economic factors lag in the industrialization of traditional farming areas. Since the founding of New China in 1949，traditional agricultural areas provided national public goods，including food security，cheap labor，environment and resources，etc. But they did not get comyensation and these should be provided by the central government Reform of the existing financial system，promote the industrialization of traditional agricultural areas，there is a lot of work to be done：including adjustments the current taxes system，the transfer payment and so on. Of course，the industrialization of traditional agricultural areas should coordinate with the country’s food security，not at the expense of the environment and resources.

Obviously，the industrialization of the agricultural areas need financial support，public finance revenue and expenditure policy should be adapted to the needs of the industrial development of the agricultural areas in order to establish an operating mechanism of public finance that fits the industrialization of the agricultural areas. The transition of public finance should take into account both the modernization of agriculture and the industrialization of agricultural areas，and coordinate with the target of the equalization of basic public services in urban and rural areas，adopt a series of policies and measures to promote the coordinated development of agricultural areas in industrialization，urbanization and agricultural modernization.

Key Words：Industrialization of agricultural areas，Fiscal system，The competitive government，The regional economic