Fiscal Decentralisation and Local Economic Growth: Evidence from a Fiscal Reform in China
This paper uses a fiscal decentralisation reform in China – namely, the province-managing-county (PMC) reform – to examine the effects of fiscal decentralisation on local economic growth. The PMC reform abolished the subordinate fiscal relationship between prefectures and counties and transferred mu...
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| Veröffentlicht in: | Fiscal studies 2018-03, Vol.39 (1), p.159-187 |
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| creator | Ma, Guangrong Mao, Jie |
| description | This paper uses a fiscal decentralisation reform in China – namely, the province-managing-county (PMC) reform – to examine the effects of fiscal decentralisation on local economic growth. The PMC reform abolished the subordinate fiscal relationship between prefectures and counties and transferred much of the tax and spending authority from the prefecture to the county level. Exploiting a county-level panel data set over 2001–11, we find that the reform has led to a significant increase in the GDP growth rate. The effect is considerably more pronounced in regions with superior initial institutional quality. We also identify channels: the PMC reform induced county governments to exert lower tax burdens on firms and increase spending on infrastructure construction. |
| doi_str_mv | 10.1111/j.1475-5890.2017.12148 |
| format | Article |
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We also identify channels: the PMC reform induced county governments to exert lower tax burdens on firms and increase spending on infrastructure construction.</description><subject>Counties</subject><subject>Decentralization</subject><subject>Districts</subject><subject>Economic growth</subject><subject>Economic models</subject><subject>Expenditures</subject><subject>fiscal decentralisation</subject><subject>GDP</subject><subject>Gross Domestic Product</subject><subject>Growth rate</subject><subject>H77</subject><subject>Infrastructure</subject><subject>local economic growth</subject><subject>Local government</subject><subject>Panel data</subject><subject>province‐managing‐county reform</subject><subject>R51</subject><subject>Reforms</subject><subject>Taxation</subject><issn>0143-5671</issn><issn>1475-5890</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><recordid>eNqNkE1Lw0AQhhdRsFZ_ghLwnLiT_T54kNrWQsGDel6W7QYT0mzdTSn9926M9uzAMMPMPDPMi9Ad4AKSPTQFUMFyJhUuSgyigBKoPEOTU_kcTTBQkjMu4BJdxdhgjAktYYJgUUdr2uzZWdf1wbR1NH3tu8x0m2zth9bc-s5va5stgz_0n9foojJtdDe_cYo-FvP32Uu-fl2uZk_r3BJVypwQgZ3BTlUk3ZIOK-WwAcYs5Sl1hnFOFFeyIgywlKYUrNrQSlXJDRVkiu7Hvbvgv_Yu9rrx-9Clkzp9CSCZSIuniI9TNvgYg6v0LtRbE44asB7k0Y0edNCDDgMo9I88CXwcwUPduuM_Kb1Yvc3--NuRb2Lvw4kvOcdMSkq-AW-kcSE</recordid><startdate>20180301</startdate><enddate>20180301</enddate><creator>Ma, Guangrong</creator><creator>Mao, Jie</creator><general>Wiley</general><general>Blackwell Publishing Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7TQ</scope><scope>8BJ</scope><scope>DHY</scope><scope>DON</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20180301</creationdate><title>Fiscal Decentralisation and Local Economic Growth</title><author>Ma, Guangrong ; Mao, Jie</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3928-3370ea0e9f30038e099e0a155c4699eea56639698f351088a275fd4f9f4f9a473</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2018</creationdate><topic>Counties</topic><topic>Decentralization</topic><topic>Districts</topic><topic>Economic growth</topic><topic>Economic models</topic><topic>Expenditures</topic><topic>fiscal decentralisation</topic><topic>GDP</topic><topic>Gross Domestic Product</topic><topic>Growth rate</topic><topic>H77</topic><topic>Infrastructure</topic><topic>local economic growth</topic><topic>Local government</topic><topic>Panel data</topic><topic>province‐managing‐county reform</topic><topic>R51</topic><topic>Reforms</topic><topic>Taxation</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Ma, Guangrong</creatorcontrib><creatorcontrib>Mao, Jie</creatorcontrib><collection>CrossRef</collection><collection>PAIS Index</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Fiscal studies</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Ma, Guangrong</au><au>Mao, Jie</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Fiscal Decentralisation and Local Economic Growth: Evidence from a Fiscal Reform in China</atitle><jtitle>Fiscal studies</jtitle><date>2018-03-01</date><risdate>2018</risdate><volume>39</volume><issue>1</issue><spage>159</spage><epage>187</epage><pages>159-187</pages><issn>0143-5671</issn><eissn>1475-5890</eissn><abstract>This paper uses a fiscal decentralisation reform in China – namely, the province-managing-county (PMC) reform – to examine the effects of fiscal decentralisation on local economic growth. 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| identifier | ISSN: 0143-5671 |
| ispartof | Fiscal studies, 2018-03, Vol.39 (1), p.159-187 |
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| language | eng |
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| source | Wiley Online Library Journals Frontfile Complete; PAIS Index; Jstor Complete Legacy |
| subjects | Counties Decentralization Districts Economic growth Economic models Expenditures fiscal decentralisation GDP Gross Domestic Product Growth rate H77 Infrastructure local economic growth Local government Panel data province‐managing‐county reform R51 Reforms Taxation |
| title | Fiscal Decentralisation and Local Economic Growth: Evidence from a Fiscal Reform in China |
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