How to explain the inverted U-shaped curve of tax centralization in China?

Hongsheng Fang, Lin Guo, Wenjun Shuai and Ye Dong

Journal of Asian Economics, 2021, vol. 73, issue C

Abstract: This paper uses popular approaches to measure fluctuations in tax centralization and the decomposition of changes in tax centralization to explain the inverted U-shaped curve of tax centralization in China. The results show that 1) during the 2002–2007 period, the within-sector effect played a dominant role in the increase in tax centralization and 2) during the 2008–2016 period, the between-sector effect was the main reason for the continued decline in tax centralization. To avoid this continued decline in tax centralization, we argue that the central government should ensure that the within-sector tax centralization of other services is not lower than that of the industry sector.

Keywords: Tax centralization; Within-sector effect; Between-sector effect (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1049007821000117
Full text for ScienceDirect subscribers only

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:eee:asieco:v:73:y:2021:i:c:s1049007821000117

DOI: 10.1016/j.asieco.2021.101282

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().