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Fiscal Federalism and Economic Reform in China

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Author Info
Roy Bahl () (Andrew Young School of Policy Studies, Georgia State University)
Jorge Martinez-Vazquez () (International Studies Program. Andrew Young School of Policy Studies, Georgia State University)

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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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Paper provided by International Studies Program, Andrew Young School of Policy Studies, Georgia State University in its series International Studies Program Working Paper Series, at AYSPS, GSU with number paper0313.

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Length: 60 pages
Date of creation: 01 May 2003
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Handle: RePEc:ays:ispwps:paper0313

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Keywords: Fiscal Federalism; Economic Reform; China;

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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. Wei, Shang-Jin & Wu, Yi, 2001. "Globalization and Inequality: Evidence from within China," CEPR Discussion Papers 3088, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Yingqi Wei, Xiaming Liu, David Parker, Kirit Vaidya, 1999. "The Regional Distribution of Foreign Direct Investment in China," Regional Studies, Taylor and Francis Journals, vol. 33(9), pages 857-867, December. [Downloadable!] (restricted)
  3. Zhihua Zhang & Jorge Martinez-Vazquez, 2003. "The System of Equalization Transfers in China," International Studies Program Working Paper Series, at AYSPS, GSU paper0312, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  4. Zhang, Le-Yin, 1994. "Location-specific advantages and manufacturing direct foreign investment in South China," World Development, Elsevier, vol. 22(1), pages 45-53, January. [Downloadable!] (restricted)
  5. Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Preserving Market Incentives," Working Papers 97042, Stanford University, Department of Economics. [Downloadable!]
  6. Yao, Shujie & Zhu, Liwei, 1998. " Understanding Income Inequality in China: A Multi-angle Perspective," Economic Change and Restructuring, Springer, vol. 31(2-3), pages 133-50. [Downloadable!] (restricted)
  7. Qian, Yingyi & Weingast, Barry R, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall. [Downloadable!] (restricted)
  8. Zhang, Xiaobo & Fan, Shenggen & Zhang, Linxiu & Huang, Jikun, 2002. "Local governance and public goods provision in rural China:," EPTD discussion papers 93, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  9. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21. [Downloadable!] (restricted)
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  10. Sun, Qian & Tong, Wilson & Yu, Qiao, 2002. "Determinants of foreign direct investment across China," Journal of International Money and Finance, Elsevier, vol. 21(1), pages 79-113, February. [Downloadable!] (restricted)
  11. Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April. [Downloadable!] (restricted)
  12. Hehui Jin & Yingyi Qian & Barry Weingast, 1999. "Regional Decentralization and Fiscal Incentives: Federalism, Chinese Style," Working Papers 99013, Stanford University, Department of Economics. [Downloadable!]
  13. Olivier Blanchard & Andrei Shleifer, 2000. "Federalism With and Without Political Centralization. China versus Russia," Harvard Institute of Economic Research Working Papers 1889, Harvard - Institute of Economic Research.
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  14. Shujie Yao & Liwei Zhu, 1998. "Understanding Income Inequality in China: A Multi-Angle Perspective," Economic Change and Restructuring, Springer, vol. 31(2), pages 133-150, May. [Downloadable!] (restricted)
  15. Li, Shuhe & Lian, Peng, 1999. "Decentralization and coordination: China's credible commitment to preserve the market under authoritarianism," China Economic Review, Elsevier, vol. 10(2), pages 161-190. [Downloadable!] (restricted)
  16. Zhang, Tao & Zou, Heng-fu, 1998. "Fiscal decentralization, public spending, and economic growth in China," Journal of Public Economics, Elsevier, vol. 67(2), pages 221-240, February. [Downloadable!] (restricted)
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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. Jorge Martinez-Vazquez & Mark Rider, 2005. "Fiscal Decentralization and Economic Growth: A Comparative Study of China and India," International Studies Program Working Paper Series, at AYSPS, GSU paper0519, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  2. Francois Vaillancourt & Richard M.Bird, 2004. "Expenditure-Based Equalization Transfers," International Studies Program Working Paper Series, at AYSPS, GSU paper0410, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
    Other versions:
  3. Christine C.P. Wong & Richard M. Bird, 2005. "China?s Fiscal System: A Work in Progress," International Tax Program Papers 0515, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto. [Downloadable!]
    Other versions:
  4. Robert W. Fogel, 2006. "Why China is Likely to Achieve its Growth Objectives," NBER Working Papers 12122, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Jorge Martinez-Vazquez & Baoyun Qiao & Li Zhang, 2007. "The Role of Provincial Policies in Fiscal Equalization Outcomes in China," International Studies Program Working Paper Series, at AYSPS, GSU paper0705, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  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. [Downloadable!]
    Other versions:
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