Like the new and hate the old: The impact of fiscal decentralization on regional development strategy
This paper evaluates the impact of China’s fiscal decentralization reform, namely the “Province-Managing-County” (PMC) fiscal reform, on local governments’ regional development strategy using county-level data in China covering 2000 to 2013. Surprisingly, after implementing the PMC fiscal reform, lo...
Gespeichert in:
| Veröffentlicht in: | PloS one 2022-09, Vol.17 (9), p.e0273875-e0273875 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | e0273875 |
|---|---|
| container_issue | 9 |
| container_start_page | e0273875 |
| container_title | PloS one |
| container_volume | 17 |
| creator | Liu, Min Gong, Feng Song, Wenjing |
| description | This paper evaluates the impact of China’s fiscal decentralization reform, namely the “Province-Managing-County” (PMC) fiscal reform, on local governments’ regional development strategy using county-level data in China covering 2000 to 2013. Surprisingly, after implementing the PMC fiscal reform, local governments will adjust their strategy of supporting zombie firms and attracting new firms, indicating that fiscal decentralization has changed the regional development strategies of local governments. We perform a difference-in-differences (DID) analysis and find that the PMC fiscal reform materially induces an average rise of 0.131 in newly added firms, an average decline of 0.383 in zombie firms, and no significant change in other firms. There is a pronounced substitution effect between zombie firms and newly added firms. We also find evidence supporting this argument: the government’s subsidy, tax treatment, and financial support. Our study provides empirical evidence that local governments’ regional development strategies can be affected by fiscal decentralization. |
| doi_str_mv | 10.1371/journal.pone.0273875 |
| format | Article |
| fullrecord | <record><control><sourceid>gale_plos_</sourceid><recordid>TN_cdi_plos_journals_2712350011</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A716700373</galeid><doaj_id>oai_doaj_org_article_1adafdf4e4b440ae8945afab1df828ac</doaj_id><sourcerecordid>A716700373</sourcerecordid><originalsourceid>FETCH-LOGICAL-c618t-64187b414b6015ba86bf541c893ca4f0de8c30c0987f2c22dc0d9aeffc5ea943</originalsourceid><addsrcrecordid>eNqNk12L1DAUhoso7rr6DwQLgujFjPlqm3ohLIsfAwMLOngbTpOTTse0mW3a1fXXm9mpspW9kARyOHnOm-QlJ0meU7KkvKBvd37sO3DLve9wSVjBZZE9SE5pydkiZ4Q_vBOfJE9C2BGScZnnj5MTnhMpSMFOE1w33zEdtph2-COFzqRbGI4J78y7dBODpt2DHlJvU9sEDS41qLEbenDNLxga36Vx9ljH6HbzGp3ft5FIQ4QGrG-eJo8suIDPpvUs2Xz8sLn4vFhfflpdnK8XOqdyWOSCyqISVFQ5oVkFMq9sJqiWJdcgLDEoNSealLKwTDNmNDEloLU6QygFP0teHGX3zgc1GRQUKyjjGSGURmJ1JIyHndr3TQv9jfLQqNuE72sF_dBoh4qCAWusQFEJQQBlKTKwUFFjJZOgo9b76bSxatFMlsxE5ztds1W1v1alyFmRZVHg9STQ-6sRw6Da6C86Bx368XhvKUTG8oi-_Ae9_3UTVUN8QNNZH8_VB1F1XtC8IIQXPFLLe6g4DLaNjr_JNjE_K3gzK4jMgD-HGsYQ1Orrl_9nL7_N2Vd32C2CG7bBu_HwpcIcFEdQ9z6EHu1fkylRh2b444Y6NIOamoH_BiPE-5Y</addsrcrecordid><sourcetype>Open Website</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2712350011</pqid></control><display><type>article</type><title>Like the new and hate the old: The impact of fiscal decentralization on regional development strategy</title><source>DOAJ Directory of Open Access Journals</source><source>Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals</source><source>PubMed Central</source><source>Free Full-Text Journals in Chemistry</source><source>Public Library of Science (PLoS)</source><creator>Liu, Min ; Gong, Feng ; Song, Wenjing</creator><contributor>Do, Hung</contributor><creatorcontrib>Liu, Min ; Gong, Feng ; Song, Wenjing ; Do, Hung</creatorcontrib><description>This paper evaluates the impact of China’s fiscal decentralization reform, namely the “Province-Managing-County” (PMC) fiscal reform, on local governments’ regional development strategy using county-level data in China covering 2000 to 2013. Surprisingly, after implementing the PMC fiscal reform, local governments will adjust their strategy of supporting zombie firms and attracting new firms, indicating that fiscal decentralization has changed the regional development strategies of local governments. We perform a difference-in-differences (DID) analysis and find that the PMC fiscal reform materially induces an average rise of 0.131 in newly added firms, an average decline of 0.383 in zombie firms, and no significant change in other firms. There is a pronounced substitution effect between zombie firms and newly added firms. We also find evidence supporting this argument: the government’s subsidy, tax treatment, and financial support. Our study provides empirical evidence that local governments’ regional development strategies can be affected by fiscal decentralization.</description><identifier>ISSN: 1932-6203</identifier><identifier>EISSN: 1932-6203</identifier><identifier>DOI: 10.1371/journal.pone.0273875</identifier><identifier>PMID: 36084072</identifier><language>eng</language><publisher>San Francisco: Public Library of Science</publisher><subject>Biology and Life Sciences ; Decentralization ; Development strategies ; Economic development ; Economic growth ; Empirical analysis ; Evaluation ; Federalism ; Fiscal policy ; Grants ; Literature reviews ; Local government ; People and Places ; Regional development ; Regional planning ; Social Sciences ; Subsidies ; Taxation ; Trends</subject><ispartof>PloS one, 2022-09, Vol.17 (9), p.e0273875-e0273875</ispartof><rights>COPYRIGHT 2022 Public Library of Science</rights><rights>2022 Liu et al. This is an open access article distributed under the terms of the Creative Commons Attribution License: http://creativecommons.org/licenses/by/4.0/ (the “License”), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.</rights><rights>2022 Liu et al 2022 Liu et al</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><cites>FETCH-LOGICAL-c618t-64187b414b6015ba86bf541c893ca4f0de8c30c0987f2c22dc0d9aeffc5ea943</cites><orcidid>0000-0002-3806-1621 ; 0000-0003-2945-1641</orcidid></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.ncbi.nlm.nih.gov/pmc/articles/PMC9462755/pdf/$$EPDF$$P50$$Gpubmedcentral$$Hfree_for_read</linktopdf><linktohtml>$$Uhttps://www.ncbi.nlm.nih.gov/pmc/articles/PMC9462755/$$EHTML$$P50$$Gpubmedcentral$$Hfree_for_read</linktohtml><link.rule.ids>230,314,723,776,780,860,881,2095,2914,23846,27903,27904,53769,53771,79346,79347</link.rule.ids></links><search><contributor>Do, Hung</contributor><creatorcontrib>Liu, Min</creatorcontrib><creatorcontrib>Gong, Feng</creatorcontrib><creatorcontrib>Song, Wenjing</creatorcontrib><title>Like the new and hate the old: The impact of fiscal decentralization on regional development strategy</title><title>PloS one</title><description>This paper evaluates the impact of China’s fiscal decentralization reform, namely the “Province-Managing-County” (PMC) fiscal reform, on local governments’ regional development strategy using county-level data in China covering 2000 to 2013. Surprisingly, after implementing the PMC fiscal reform, local governments will adjust their strategy of supporting zombie firms and attracting new firms, indicating that fiscal decentralization has changed the regional development strategies of local governments. We perform a difference-in-differences (DID) analysis and find that the PMC fiscal reform materially induces an average rise of 0.131 in newly added firms, an average decline of 0.383 in zombie firms, and no significant change in other firms. There is a pronounced substitution effect between zombie firms and newly added firms. We also find evidence supporting this argument: the government’s subsidy, tax treatment, and financial support. Our study provides empirical evidence that local governments’ regional development strategies can be affected by fiscal decentralization.</description><subject>Biology and Life Sciences</subject><subject>Decentralization</subject><subject>Development strategies</subject><subject>Economic development</subject><subject>Economic growth</subject><subject>Empirical analysis</subject><subject>Evaluation</subject><subject>Federalism</subject><subject>Fiscal policy</subject><subject>Grants</subject><subject>Literature reviews</subject><subject>Local government</subject><subject>People and Places</subject><subject>Regional development</subject><subject>Regional planning</subject><subject>Social Sciences</subject><subject>Subsidies</subject><subject>Taxation</subject><subject>Trends</subject><issn>1932-6203</issn><issn>1932-6203</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2022</creationdate><recordtype>article</recordtype><sourceid>BENPR</sourceid><sourceid>DOA</sourceid><recordid>eNqNk12L1DAUhoso7rr6DwQLgujFjPlqm3ohLIsfAwMLOngbTpOTTse0mW3a1fXXm9mpspW9kARyOHnOm-QlJ0meU7KkvKBvd37sO3DLve9wSVjBZZE9SE5pydkiZ4Q_vBOfJE9C2BGScZnnj5MTnhMpSMFOE1w33zEdtph2-COFzqRbGI4J78y7dBODpt2DHlJvU9sEDS41qLEbenDNLxga36Vx9ljH6HbzGp3ft5FIQ4QGrG-eJo8suIDPpvUs2Xz8sLn4vFhfflpdnK8XOqdyWOSCyqISVFQ5oVkFMq9sJqiWJdcgLDEoNSealLKwTDNmNDEloLU6QygFP0teHGX3zgc1GRQUKyjjGSGURmJ1JIyHndr3TQv9jfLQqNuE72sF_dBoh4qCAWusQFEJQQBlKTKwUFFjJZOgo9b76bSxatFMlsxE5ztds1W1v1alyFmRZVHg9STQ-6sRw6Da6C86Bx368XhvKUTG8oi-_Ae9_3UTVUN8QNNZH8_VB1F1XtC8IIQXPFLLe6g4DLaNjr_JNjE_K3gzK4jMgD-HGsYQ1Orrl_9nL7_N2Vd32C2CG7bBu_HwpcIcFEdQ9z6EHu1fkylRh2b444Y6NIOamoH_BiPE-5Y</recordid><startdate>20220909</startdate><enddate>20220909</enddate><creator>Liu, Min</creator><creator>Gong, Feng</creator><creator>Song, Wenjing</creator><general>Public Library of Science</general><general>Public Library of Science (PLoS)</general><scope>AAYXX</scope><scope>CITATION</scope><scope>IOV</scope><scope>ISR</scope><scope>3V.</scope><scope>7QG</scope><scope>7QL</scope><scope>7QO</scope><scope>7RV</scope><scope>7SN</scope><scope>7SS</scope><scope>7T5</scope><scope>7TG</scope><scope>7TM</scope><scope>7U9</scope><scope>7X2</scope><scope>7X7</scope><scope>7XB</scope><scope>88E</scope><scope>8AO</scope><scope>8C1</scope><scope>8FD</scope><scope>8FE</scope><scope>8FG</scope><scope>8FH</scope><scope>8FI</scope><scope>8FJ</scope><scope>8FK</scope><scope>ABJCF</scope><scope>ABUWG</scope><scope>AEUYN</scope><scope>AFKRA</scope><scope>ARAPS</scope><scope>ATCPS</scope><scope>AZQEC</scope><scope>BBNVY</scope><scope>BENPR</scope><scope>BGLVJ</scope><scope>BHPHI</scope><scope>C1K</scope><scope>CCPQU</scope><scope>D1I</scope><scope>DWQXO</scope><scope>FR3</scope><scope>FYUFA</scope><scope>GHDGH</scope><scope>GNUQQ</scope><scope>H94</scope><scope>HCIFZ</scope><scope>K9.</scope><scope>KB.</scope><scope>KB0</scope><scope>KL.</scope><scope>L6V</scope><scope>LK8</scope><scope>M0K</scope><scope>M0S</scope><scope>M1P</scope><scope>M7N</scope><scope>M7P</scope><scope>M7S</scope><scope>NAPCQ</scope><scope>P5Z</scope><scope>P62</scope><scope>P64</scope><scope>PATMY</scope><scope>PDBOC</scope><scope>PIMPY</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>PTHSS</scope><scope>PYCSY</scope><scope>RC3</scope><scope>7X8</scope><scope>5PM</scope><scope>DOA</scope><orcidid>https://orcid.org/0000-0002-3806-1621</orcidid><orcidid>https://orcid.org/0000-0003-2945-1641</orcidid></search><sort><creationdate>20220909</creationdate><title>Like the new and hate the old: The impact of fiscal decentralization on regional development strategy</title><author>Liu, Min ; Gong, Feng ; Song, Wenjing</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c618t-64187b414b6015ba86bf541c893ca4f0de8c30c0987f2c22dc0d9aeffc5ea943</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2022</creationdate><topic>Biology and Life Sciences</topic><topic>Decentralization</topic><topic>Development strategies</topic><topic>Economic development</topic><topic>Economic growth</topic><topic>Empirical analysis</topic><topic>Evaluation</topic><topic>Federalism</topic><topic>Fiscal policy</topic><topic>Grants</topic><topic>Literature reviews</topic><topic>Local government</topic><topic>People and Places</topic><topic>Regional development</topic><topic>Regional planning</topic><topic>Social Sciences</topic><topic>Subsidies</topic><topic>Taxation</topic><topic>Trends</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Liu, Min</creatorcontrib><creatorcontrib>Gong, Feng</creatorcontrib><creatorcontrib>Song, Wenjing</creatorcontrib><collection>CrossRef</collection><collection>Gale In Context: Opposing Viewpoints</collection><collection>Gale In Context: Science</collection><collection>ProQuest Central (Corporate)</collection><collection>Animal Behavior Abstracts</collection><collection>Bacteriology Abstracts (Microbiology B)</collection><collection>Biotechnology Research Abstracts</collection><collection>Nursing & Allied Health Database</collection><collection>Ecology Abstracts</collection><collection>Entomology Abstracts (Full archive)</collection><collection>Immunology Abstracts</collection><collection>Meteorological & Geoastrophysical Abstracts</collection><collection>Nucleic Acids Abstracts</collection><collection>Virology and AIDS Abstracts</collection><collection>Agricultural Science Collection</collection><collection>Health & Medical Collection</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>Medical Database (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>Public Health Database</collection><collection>Technology Research Database</collection><collection>ProQuest SciTech Collection</collection><collection>ProQuest Technology Collection</collection><collection>ProQuest Natural Science Collection</collection><collection>Hospital Premium Collection</collection><collection>Hospital Premium Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>Materials Science & Engineering Collection</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest One Sustainability</collection><collection>ProQuest Central UK/Ireland</collection><collection>Advanced Technologies & Aerospace Collection</collection><collection>Agricultural & Environmental Science Collection</collection><collection>ProQuest Central Essentials</collection><collection>Biological Science Collection</collection><collection>ProQuest Central</collection><collection>Technology Collection</collection><collection>Natural Science Collection</collection><collection>Environmental Sciences and Pollution Management</collection><collection>ProQuest One Community College</collection><collection>ProQuest Materials Science Collection</collection><collection>ProQuest Central Korea</collection><collection>Engineering Research Database</collection><collection>Health Research Premium Collection</collection><collection>Health Research Premium Collection (Alumni)</collection><collection>ProQuest Central Student</collection><collection>AIDS and Cancer Research Abstracts</collection><collection>SciTech Premium Collection</collection><collection>ProQuest Health & Medical Complete (Alumni)</collection><collection>Materials Science Database</collection><collection>Nursing & Allied Health Database (Alumni Edition)</collection><collection>Meteorological & Geoastrophysical Abstracts - Academic</collection><collection>ProQuest Engineering Collection</collection><collection>ProQuest Biological Science Collection</collection><collection>Agricultural Science Database</collection><collection>Health & Medical Collection (Alumni Edition)</collection><collection>Medical Database</collection><collection>Algology Mycology and Protozoology Abstracts (Microbiology C)</collection><collection>Biological Science Database</collection><collection>Engineering Database</collection><collection>Nursing & Allied Health Premium</collection><collection>Advanced Technologies & Aerospace Database</collection><collection>ProQuest Advanced Technologies & Aerospace Collection</collection><collection>Biotechnology and BioEngineering Abstracts</collection><collection>Environmental Science Database</collection><collection>Materials Science Collection</collection><collection>Publicly Available Content Database</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>Engineering Collection</collection><collection>Environmental Science Collection</collection><collection>Genetics Abstracts</collection><collection>MEDLINE - Academic</collection><collection>PubMed Central (Full Participant titles)</collection><collection>DOAJ Directory of Open Access Journals</collection><jtitle>PloS one</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Liu, Min</au><au>Gong, Feng</au><au>Song, Wenjing</au><au>Do, Hung</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Like the new and hate the old: The impact of fiscal decentralization on regional development strategy</atitle><jtitle>PloS one</jtitle><date>2022-09-09</date><risdate>2022</risdate><volume>17</volume><issue>9</issue><spage>e0273875</spage><epage>e0273875</epage><pages>e0273875-e0273875</pages><issn>1932-6203</issn><eissn>1932-6203</eissn><abstract>This paper evaluates the impact of China’s fiscal decentralization reform, namely the “Province-Managing-County” (PMC) fiscal reform, on local governments’ regional development strategy using county-level data in China covering 2000 to 2013. Surprisingly, after implementing the PMC fiscal reform, local governments will adjust their strategy of supporting zombie firms and attracting new firms, indicating that fiscal decentralization has changed the regional development strategies of local governments. We perform a difference-in-differences (DID) analysis and find that the PMC fiscal reform materially induces an average rise of 0.131 in newly added firms, an average decline of 0.383 in zombie firms, and no significant change in other firms. There is a pronounced substitution effect between zombie firms and newly added firms. We also find evidence supporting this argument: the government’s subsidy, tax treatment, and financial support. Our study provides empirical evidence that local governments’ regional development strategies can be affected by fiscal decentralization.</abstract><cop>San Francisco</cop><pub>Public Library of Science</pub><pmid>36084072</pmid><doi>10.1371/journal.pone.0273875</doi><tpages>e0273875</tpages><orcidid>https://orcid.org/0000-0002-3806-1621</orcidid><orcidid>https://orcid.org/0000-0003-2945-1641</orcidid><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 1932-6203 |
| ispartof | PloS one, 2022-09, Vol.17 (9), p.e0273875-e0273875 |
| issn | 1932-6203 1932-6203 |
| language | eng |
| recordid | cdi_plos_journals_2712350011 |
| source | DOAJ Directory of Open Access Journals; Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals; PubMed Central; Free Full-Text Journals in Chemistry; Public Library of Science (PLoS) |
| subjects | Biology and Life Sciences Decentralization Development strategies Economic development Economic growth Empirical analysis Evaluation Federalism Fiscal policy Grants Literature reviews Local government People and Places Regional development Regional planning Social Sciences Subsidies Taxation Trends |
| title | Like the new and hate the old: The impact of fiscal decentralization on regional development strategy |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-27T04%3A12%3A34IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_plos_&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Like%20the%20new%20and%20hate%20the%20old:%20The%20impact%20of%20fiscal%20decentralization%20on%20regional%20development%20strategy&rft.jtitle=PloS%20one&rft.au=Liu,%20Min&rft.date=2022-09-09&rft.volume=17&rft.issue=9&rft.spage=e0273875&rft.epage=e0273875&rft.pages=e0273875-e0273875&rft.issn=1932-6203&rft.eissn=1932-6203&rft_id=info:doi/10.1371/journal.pone.0273875&rft_dat=%3Cgale_plos_%3EA716700373%3C/gale_plos_%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2712350011&rft_id=info:pmid/36084072&rft_galeid=A716700373&rft_doaj_id=oai_doaj_org_article_1adafdf4e4b440ae8945afab1df828ac&rfr_iscdi=true |