Basing on the county scale fiscal transfer data uses spatial analysis, entropy weight TOPSIS, GMM dynamic panel model and other methods to measure the spatial pattern of fiscal transfer in China and its effects on the county socio-economic development. Firstly, the distribution of fiscal transfer is basically consistent with the distribution mechanism presenting much larger in the western region than the eastern, while the tax return is the opposite. Fiscal transfer is increasing in ecological functional areas, former revolutionary base areas, areas inhabited by minority nationalities, remote and border areas and poverty-stricken areas. In general, fiscal transfer does not effectively narrow the development gap between regions. Secondly, the impact of fiscal transfer on socio-economic development can be divided into total impact (positive), structural influence and bidirectional influence, while unconditional fiscal transfer impacts on the county socio-economic development, the conditional would have a more complex impact mechanism by influencing local government decisions, it has a bidirectional influence between socio-economic development and fiscal transfer, the current situation of socio-economic development has a negative impact on the distribution of fiscal transfer, and fiscal transfer forms negative incentive on the efforts for the local government fiscal and taxation, weakening the positive impact of fiscal transfer on the socio-economic development. Finally, comprehensive fiscal transfer and balanced fiscal transfer both play a significant positive role in promoting socio-economic development in the county, butdo not effectively narrow the socio-economic development gap between underdeveloped regions and developed regions, the negative incentive of fiscal transfer on the efforts for the local government fiscal and taxation and insufficient investment in soft public goods may be important factors.