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Fiscal Federalism and Economic Reform in China

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Abstract

Because of history, size and economic potential China is a force to reckon with: 9.6 million square kilometers populated by 1.26 billion people. China has a varied geography. Moving from west to east, Figure 1, we start with the vast dry areas in the west, move to the mountains, valleys and higher altitudes of the center, and end up in the more temperate coastal regions which have more rain, lower altitudes, easier communication and transportation. A main theme of this paper is that in great part due to geography, but also due to overt government policies, wealth and economic well-being tend to increase monotonically from west to east. That reality conditions significantly the past, present, and future of fiscal federalism in China.

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  • Roy Bahl & Jorge Martinez-Vazquez, 2003. "Fiscal Federalism and Economic Reform in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0313, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper0313
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    Cited by:

    1. Jorge Martinez & Baoyun Qian & Shuilin Wang & Heng-fu Zou, 2006. "Local Public Finance in China: Challenges and Policy Options," CEMA Working Papers 549, China Economics and Management Academy, Central University of Finance and Economics.
    2. Srinivasan, T. N., 2004. "China and India: economic performance, competition and cooperation: an update," Journal of Asian Economics, Elsevier, vol. 15(4), pages 613-636, August.
    3. Luca Zan & Qingmei Xue, 2011. "Budgeting China. Macro‐policies and micro‐practices in public sector changes," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 24(1), pages 38-62, January.
    4. Richard Bird & François Vaillancourt, 2007. "Expenditure-Based Equalization Transfers," Springer Books, in: Jorge Martinez-Vazquez & Bob Searle (ed.), Fiscal Equalization, chapter 0, pages 259-289, Springer.
    5. Jorge Martinez & Baoyun Qian & Shuilin Wang & Heng-fu Zou, 2006. "Local Public Finance in China: Intergovernmental transfers," CEMA Working Papers 552, China Economics and Management Academy, Central University of Finance and Economics.
    6. Singh, Nirvikar & Srinivasan, T.N., 2006. "Federalism and economic development in India: An assessment," MPRA Paper 12452, University Library of Munich, Germany, revised Aug 2008.
    7. Robert W. Fogel, 2006. "Why China is Likely to Achieve its Growth Objectives," NBER Working Papers 12122, National Bureau of Economic Research, Inc.
    8. Qingmei Xue & Luca Zan, 2012. "Opening the door to accounting change. Transformations in Chinese public sector accounting," Accounting History Review, Taylor & Francis Journals, vol. 22(3), pages 269-299, November.
    9. Jorge Martinez & Baoyun Qian & Shuilin Wang & Heng-fu Zou, 2006. "Local Public Finance in China: Revenues of Local Governments," CEMA Working Papers 551, China Economics and Management Academy, Central University of Finance and Economics.
    10. Richard M. Bird, 2008. "Tax Assignment Revisited," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0805, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    11. Jorge Martinez & Baoyun Qian & Shuilin Wang & Heng-fu Zou, 2012. "A Treaties on Public Finance in China," CEMA Working Papers 555, China Economics and Management Academy, Central University of Finance and Economics.
    12. Jorge Martinez-Vazquez & Baoyun Qiao & Li Zhang, 2007. "The Role of Provincial Policies in Fiscal Equalization Outcomes in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0705, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    13. Jorge Martinez & Baoyun Qian & Shuilin Wang & Heng-fu Zou, 2006. "Local Public Finance in China: Expenditure Responsibilities of Local Governments," CEMA Working Papers 550, China Economics and Management Academy, Central University of Finance and Economics.
    14. Fardoust, Shahrokh & Lin, Justin Yifu & Luo, Xubei, 2012. "Demystifying China's fiscal stimulus," Policy Research Working Paper Series 6221, The World Bank.
    15. Richard Bird & Christine C.P.Wong, 2005. "China's Fiscal System: A Work in Progress (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0520, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    16. Robert W. Fogel, 2007. "Capitalism and Democracy in 2040: Forecasts and Speculations," NBER Working Papers 13184, National Bureau of Economic Research, Inc.
    17. Jorge Martinez-Vazquez & Mark Rider, 2005. "Fiscal Decentralization and Economic Growth: A Comparative Study of China and India (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0519, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    18. Mototsugu Fukushige & Yingxin Shi, 2014. "Efficient Scale of Local Government in China: Quantile Regression Approach to County-Level Data," Discussion Papers in Economics and Business 14-15, Osaka University, Graduate School of Economics.
    19. Jorge Martinez & Baoyun Qian & Shuilin Wang & Li Zhang & Heng-fu Zou, 2006. "Local Public Finance in China: Policy Options," CEMA Working Papers 554, China Economics and Management Academy, Central University of Finance and Economics.
    20. Jorge Martinez & Baoyun Qian & Shuilin Wang & Heng-fu Zou, 2006. "Local Public Finance in China: The performance of China's decentralization system," CEMA Working Papers 553, China Economics and Management Academy, Central University of Finance and Economics.
    21. Jing Xing & Clemens Fuest, 2018. "Central-local government fiscal relations and cyclicality of public spending: evidence from China," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(4), pages 946-980, August.
    22. Jorge Martinez & Baoyun Qiao & Shuilin Wang & Heng-fu Zou, 2014. "An Essay on Public Finance in China," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 413-519, May.

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    Fiscal Federalism; Economic Reform; China;
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