In Search of Fiscal Interactions: A Spatial Analysis of Chinese Provincial Infrastructure Spending

Xinye Zheng (), Feng Song, Yihua Yu () and Shunfeng Song

MPRA Paper from University Library of Munich, Germany

Abstract: Using a dataset for 31 Chinese provinces from 1998 to 2006, this paper provides a spatial Durbin panel analysis to test for fiscal interactions among China's provinces in their public spending on infrastructure. We find significant positive interactions across Chinese provincial governments. Further analysis attempting to distinguish between the possible sources of such fiscal interactions reveals evidence of expenditure competition instead of yardstick competition.

Keywords: Infrastructure expenditure; Fiscal interactions; Spatial Durbin panel model; Two-stage least squares (search for similar items in EconPapers)
JEL-codes: C23 H54 H7 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-cna, nep-tra, nep-tre and nep-ure
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Related works:
Journal Article: In Search of Fiscal Interactions: A Spatial Analysis of Chinese Provincial Infrastructure Spending (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:61615

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