Has Local Financial Capacity Raised the Level of Basic Public Services? --Empirical Evidence from 291 Cities in China

Chenghao Xu ()
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Chenghao Xu: Northwest Normal University

A chapter in Proceedings of the 2023 2nd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2023), 2023, pp 389-401 from Springer

Abstract: Abstract Providing basic public services accessible to all is the main responsibility of local governments. This paper focuses on the city level, and based on the panel data of 291 cities in China from 2011 to 2020, we select two core capabilities, namely, fiscal extraction capacity and fiscal allocation capacity, to comprehensively examine the impact of the fiscal capacity of local governments on the level of basic public services in China. The results of the study show that an increase in fiscal extraction capacity significantly promotes the level of basic public services, while an increase in fiscal allocation capacity significantly inhibits the level of basic public services, and the conclusions remain consistent in the case of significant spatial spillovers of basic public services. It is recommended that the fiscal extraction capacity be continuously strengthened to provide more adequate financial resources for the provision of basic public services. While improving the fiscal allocation capacity, and increasing the fiscal input in the field of basic public services. The increasing financial capacity of local governments will promote the development of basic public services to a high level and high quality.

Keywords: fiscal capacity of local governments; basic public services; entropy method; fixed effects; spatial econometric (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-344-3_45

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DOI: 10.2991/978-94-6463-344-3_45

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