Abstract: Fiscal policy is an important means to coordinate regional economic development and narrow the gap between the rich and the poor, and it is of great significance to the study of the regional imbalance effect of fiscal policy. By establishing a structural vector autoregression (SVAR) model including government investment, macro taxation, private investment and per capita output in the east, central and western regions, this paper shows that there is an obvious regional non-equilibrium effect in the fiscal policy of Chinese government investment, while the regional difference effect of macro tax policy is not obvious. The policy implication is that in order to narrow the economic gap between the eastern, central and western regions, it is necessary to change the single fiscal policy, increase the adjustment of the investment direction of government investment, and formulate differentiated regional development policies according to the different characteristics of each region.

Keyword: Fiscal policy; Government investment; Regional heterogeneous effects; SVAR model