Fiscal decentralization and political centralization in China: Implications for growth and inequality

被引:408
作者
Zhang, Xiaobo [1 ]
机构
[1] IFPRI, Washington, DC 20003 USA
关键词
Chinese economy; growth; fiscal decentralization; regional inequality;
D O I
10.1016/j.jce.2006.08.006
中图分类号
F [经济];
学科分类号
02 [经济学];
摘要
China's current fiscal system is largely decentralized while its governance structure is rather centralized with strong top-down mandates and a homogeneous governance structure. Due to large differences in initial economic structures and revenue bases, the implicit tax rate and fiscal burdens to support the functioning of local government vary significantly across jurisdictions. Regions initially endowed with a broader nonfarm tax base do not need to rely heavily on preexisting or new firms to finance public goods provision, thereby creating a healthy investment environment for the nonfarm sector to grow. In contrast, regions with agriculture as the major economic activity have little resources left for public investment after paying the expenses of bureaucracy. Consequently, differences in economic structures and fiscal burdens may translate into a widening regional gap.
引用
收藏
页码:713 / 726
页数:14
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