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Local Government Finance and Industrial Policy in China

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Author Info
Christopher Heady ()

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Abstract

The paper considers the way in which the system of local government finance in China affects the design of local industrial policy. It starts by using recently collected data from selected cities to demonstrate the importance of indirect taxes for financing local services. It then presents a theoretical model which shows how the financing system can lead local governments to distort local industrial structure. Finally, it uses this model to consider whether the 1994 tax reforms can be expected to reduce these distortions. Copyright Kluwer Academic Publishers 1998

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File URL: http://hdl.handle.net/10.1023/A:1003447810738
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Publisher Info
Article provided by Springer in its journal Economics of Planning.

Volume (Year): 31 (1998)
Issue (Month): 2 (May)
Pages: 195-212
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:ecopln:v:31:y:1998:i:2:p:195-212

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Web page: http://www.springerlink.com/link.asp?id=113294

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: industrial policy; local taxes; public goods;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Munk, Knud Jorgen, 1978. " Optimal Taxation and Pure Profit," Scandinavian Journal of Economics, Blackwell Publishing, vol. 80(1), pages 1-19.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," MPRA Paper 1705, University Library of Munich, Germany. [Downloadable!]
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This page was last updated on 2009-12-22.

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