Fiscal Decentralization and Economic Growth: A Comparative Study of China and India (2005)

Jorge Martinez-Vazquez () and Mark Rider

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: Although there are obvious differences in the political systems of China and India, there are surprising similarities in their respective approaches to decentralization. Both countries face similar design issues with their intergovernmental systems, such as the lack of clear expenditure assignments, high transfer dependency, low revenue autonomy, and soft budget constraints. As a result, in both countries there is a lack of aggregate fiscal discipline among sub-national governments, and the quality of sub-national government service delivery is poor. Poor service delivery and the lack of fiscal discipline threaten the ability of both countries to sustain high rates of economic growth.

Keywords: China; India; Fiscal Decentralization; Economic Growth; Intergovernmental fiscal (search for similar items in EconPapers)
Pages: 22 pages
Date: 2005-10-01
New Economics Papers: this item is included in nep-cna, nep-cwa, nep-dev, nep-mac, nep-sea, nep-tra and nep-ure
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper0519

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