Fiscal decentralization, public spending, and economic growth in China

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Fiscal decentralization, public spending, and economic growth in China, Volume 1

Author:	Tao Zhang; Heng-fu Zou;	Collection Title:	Policy, Research working paper ; no. WPS 1608
Country:	China;	Date Stored:	1996/05/01
Document Date:	1996/05/31	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Public Administration, Law, and Justice
Region:	East Asia and Pacific	Report Number:	WPS1608
Sub Sectors:	Public Financial Management	SubTopics:	Economic Theory & Research; Banks & Banking Reform; National Governance; Urban Economics; Public & Municipal Finance; Public Sector Economics
Volume No:	1

Summary: The authors of this report use data on China to demonstrate how the allocation of fiscal revenue and expenditures between central and local governments has affected economic growth since reforms that began in the late 1970s. They find a higher degree of fiscal decentralization associated with lower provincial economic growth over the past 15 years in China. This implies that fiscal reforms begun in China in the early 1980s have probably failed to promote the country's economic growth. This result is consistently significant and robust in their empirical examinations, and is surprising in light of the argument that fiscal decentralization usually contributes positively to provincial or local economic growth.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 52 pages	Official version*	3.64 (approx.)
	Text	Text version**


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File Type		Description	File Size (mb)

	PDF 52 pages	WPS1608	1.54

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