Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?
AbstractThis paper provides a comparative assessment of fiscal decentralization in China and India, including the standard components of expenditure and revenue assignments and institutions for intergovernmental transfers, as well as the nature of subnational authorities over general economic activity. In particular, the case of China, where town and village enterprises have been very active, is contrasted with that of India, where local governments remain circumscribed in their authority, despite decentralizing reforms. The implications of differences in decentralization for fiscal outcomes and economic growth are discussed. The characterization of each country in terms of concepts of federalism, i.e., competitive, cooperative and market preserving federalism, is discussed, in attempting to abstract from the two cases to more general lessons for fiscal decentralization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 1705.
Date of creation: Jan 2007
Date of revision:
cooperative federalism; competitive federalism; market-preserving federalism; decentralization; economic development;
Other versions of this item:
- Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," Santa Cruz Department of Economics, Working Paper Series qt76d8b4hm, Department of Economics, UC Santa Cruz.
- P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-02-10 (All new papers)
- NEP-CNA-2007-02-10 (China)
- NEP-PBE-2007-02-10 (Public Economics)
- NEP-TRA-2007-02-10 (Transition Economics)
- NEP-URE-2007-02-10 (Urban & Real Estate Economics)
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