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Fiscal Decentralization and Political Centralization in China: Implications for Growth and Inequality

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  • Xiaobo Zhang

Abstract

China's current fiscal system is largely decentralized while its governance structure is rather centralized with strong top-down mandates and a homogenous governance structure. Due to large differences in initial economic structures and revenue bases, the implicit tax rate and fiscal burdens to support the functioning of local government vary significantly across jurisdictions.

Suggested Citation

  • Xiaobo Zhang, 2006. "Fiscal Decentralization and Political Centralization in China: Implications for Growth and Inequality," WIDER Working Paper Series RP2006-93, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-93
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