Economic Reforms and Infrastructure Spending: Evidence from China and India

Pinaki Chakraborty and Yan Zhang

No RP2009-43, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the country specific effect of policy reform on infrastructure spending in China and India. In China we have examined how marketization and decentralization has affected the composition of provincial public expenditure and in the case of India we have examined the impact of fiscal reforms on sub-national infrastructure spending. It is observed that in China with a lower marketization level in 1986-1992, fiscal decentralization had positive effect on development expenditure and negative effect on other expenditure.

Keywords: Fiscal policy; Government spending policy; Finance infrastructure (search for similar items in EconPapers)
Date: 2009
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