Research on the Path of Regional Financial Resources Allocation Considering Fairness and Efficiency Based on the Data of 31 Provinces of China

This paper firstly constructs an analysis framework for the allocation of regional financial resources with fairness and efficiency. Firstly, the extended Markov chain model is used to compare the ―Matthew effect‖ of regional financial resource allocation fairness and efficiency. Subsequently, based on the two-dimensional matrix diagram, the regional financial resource allocation path that takes into account fairness and efficiency was designed, and the 31 provinces in China were taken as an example to be analyzed in 2003–2016. The results show that the fairness and efficiency of regional financial resources allocation in China are obviously incompatible. The former's Matthew effect is far greater than the latter. This conclusion is robust both in indicators and in methods. Therefore, this paper believes that the government should focus on supporting high-efficiency but low-fairness areas, which can alleviate the Matthew effect of financial resources fairness, and achieve the dynamic coordination of regional financial resources fairness and efficiency. Keywords—financial resources; fairness; efficiency; Matthew effect; coordinated allocation