Abstract: By making use of the provincial panel data of China’s 31 provinces from 1999-2013, this paper tries to analyze the impact and its action mechanism of urbanization and local financial expenditures on the public leisure services supply. The results show that urbanization has different influence direction and strength on different types of public leisure services supply. The public leisure services supply with greater demand is more likely to have a positive proportion to the level of urbanization. The growth of local fiscal expenditure has not promoted the general improvement of public leisure services supply level. Only the public leisure services supply with bigger demand and more preferences from local governments has a positive proportion to the local fiscal expenditure gross. Therefore, in order to achieve more effective supply growth of public leisure services, the local governments should take necessary measures, including doing the research on public leisure demand during the course of urbanization, arranging reasonably the supply of public leisure service items, considering fully the forward-looking decision-making for public leisure services supply, attempting boldly to adopt the market-oriented supply mode, and so on.

Key words: urbanization; finance expenditure; public leisure services; supply level