Fiscal Decentralisation and Local Public Good Provision in China

Xin-Qiao Ping and Jie Bai
Additional contact information
Xin-Qiao Ping: China Centre for Economic Research

Finance Working Papers from East Asian Bureau of Economic Research

Abstract: Fiscal incentive is closely related with the extra-budgetary revenues. Based on our definition of 'fiscal incentive', we explore the impacts of fiscal incentives under decentralisation on responsiveness of public good provision to real local needs. There are also some problems in fiscal decentralisation in China : first, with a huge basis of extra-budgetary revenue, the size of local government would be expanded, resulting in a heavier burden on the shoulder of local citizens and peasants; second, there exist some decreasing return to scale in local extra-budgetary expenditure; thirdly, 'urbanisation' (measured as the ratio of rural population to the total population) is negatively correlated with the local extra-budgetary expenditure on urban maintenance, indicating that in China, the process of industrialisation and urban construction are not consistent.

Keywords: Fiscal decentralisation; local public good provision; fiscal incentives (search for similar items in EconPapers)
JEL-codes: H61 H71 H72 (search for similar items in EconPapers)
Date: 2005-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.eaber.org/node/22027 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027 [301 Moved Permanently]--> https://www.eaber.org/node/22027)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eab:financ:22027

Access Statistics for this paper

More papers in Finance Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().