The tradeoff between growth and equity in decentralization policy: China's experience
AbstractThis paper investigates the potential tradeoff between economic growth and regional equity in the design of fiscal decentralization policy in the context of China's experience. We develop a theoretical model of fiscal decentralization, where overall national economic growth and equity in the regional distribution of fiscal resources are the two objectives pursued by the central government. The model is tested using panel data for 1985-98. We find that fiscal decentralization in China has led to economic growth as well as to significant increases in regional inequality.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 86 (2008)
Issue (Month): 1 (April)
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- Anping Chen & Nicolaas Groenewold, 2011. "The National and Regional Effects of Fiscal Decentralisation in China," Economics Discussion / Working Papers 11-18, The University of Western Australia, Department of Economics.
- Anping Chen & Nicolaas Groenewold, 2009.
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Economics Discussion / Working Papers
09-21, The University of Western Australia, Department of Economics.
- Anping Chen & Nicolaas Groenewold, 2011. "Regional Equality and National Development in China: Is There a Trade‐Off?," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 42(4), pages 628-669, December.
- Philip Bodman & Harry Campbell & Kelly-Ana Heaton & Andrew Hodge, . "Fiscal Decentralisation, Macroeconomic Conditions and Economic Growth in Australia," MRG Discussion Paper Series 2609, School of Economics, University of Queensland, Australia.
- Ahmad, Ehtisham, 2011. "Should China revisit the 1994 fiscal reforms?," Discussion Papers 115922, University of Bonn, Center for Development Research (ZEF).
- Andrés Rodríguez-Pose & Roberto Ezcurra, 2010.
"Does decentralization matter for regional disparities? A cross-country analysis,"
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Oxford University Press, vol. 10(5), pages 619-644, September.
- Roberto Ezcurra & Andrés Rodríguez-Pose, 2009. "Does Decentralization Matter for Regional Disparities? A Cross-Country Analysis," SERC Discussion Papers 0025, Spatial Economics Research Centre, LSE.
- Andrés Rodríguez-Pose & Roberto Ezcurra, 2009. "Does decentralization matter for regional disparities? A cross-country analysis," Working Papers 2009-04, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
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