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Economic Reforms and Infrastructure Spending: Evidence from China and India

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  • Pinaki Chakraborty
  • Yan Zhang

Abstract

This paper examines the country specific effect of policy reform on infrastructure spending in China and India. In China we have examined how marketization and decentralization has affected the composition of provincial public expenditure and in the case of India we have examined the impact of fiscal reforms on sub-national infrastructure spending. It is observed that in China with a lower marketization level in 1986-1992, fiscal decentralization had positive effect on development expenditure and negative effect on other expenditure.

Suggested Citation

  • Pinaki Chakraborty & Yan Zhang, 2009. "Economic Reforms and Infrastructure Spending: Evidence from China and India," WIDER Working Paper Series RP2009-43, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2009-43
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    File URL: https://www.wider.unu.edu/sites/default/files/RP2009-43.pdf
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    References listed on IDEAS

    as
    1. Keen, Michael & Marchand, Maurice, 1997. "Fiscal competition and the pattern of public spending," Journal of Public Economics, Elsevier, vol. 66(1), pages 33-53, October.
    2. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890, December.
    3. Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
    4. Cai, Hongbin & Treisman, Daniel, 2004. "State corroding federalism," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 819-843, March.
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