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County-level fiscal strait and resolutions in China

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Author Info

  • Dan Luo
  • Ronghua Ju
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    Abstract

    Purpose – The purpose of the paper is to examine China's county-level fiscal difficulties. A large portion of China's counties (county-level cities) have to run with the shortage of financial resources and huge government debt. To make a suitable policy to solve this problem is a top priority. Design/methodology/approach – Using the first-hand survey data, the paper compares nine sample counties whose economic development level is different, sums up the difficulties county-level governments are facing and explores countermeasures from qualitative and quantitative approaches. Findings – By studying the survey data of nine sample counties (cities), it is found that county-level finance is facing the following problems: low-level fiscal revenue, high debt risk and large gap of fiscal revenue between different counties (cities). Based on these findings, the paper provides suggestions such as ensuring that the county-level government has sufficient fiscal resources and improving the transfer payment system. Originality/value – Data from three well-developed counties (county-level cities), three middle-income counties (county-level cities) and three backward counties made the paper's findings more comprehensive and realistic and suggestions more practical. JEL classification: D63, H11, H77

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    File URL: http://www.emeraldinsight.com/journals.htm?issn=1756-137x&volume=3&issue=2&articleid=1923980&show=abstract
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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 3 (2011)
    Issue (Month): 2 (May)
    Pages: 210-223

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    Handle: RePEc:eme:caerpp:v:3:y:2011:i:2:p:210-223

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    Related research

    Keywords: China; Fiscal policy; National debt; Public finance; Regional government;

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    1. Adam, Christopher S. & Bevan, David L., 2005. "Fiscal deficits and growth in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 571-597, April.
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