Fiscal Decentralization, Chinese Style: Good for Health Outcomes?
AbstractThis study analyzes the effect of fiscal decentralization on health outcomes in China using a panel data set with nationwide county-level data. We find that counties in more fiscal decentralized provinces have lower infant mortality rates compared with those counties in which the provincial government retains the main spending authority, if certain conditions are met. Spending responsibilities at the local level need to be matched with county government?s own fiscal capacity. For those local governments that have only limited revenues, their ability to spend on local public goods such as health care depends crucially upon intergovernmental transfers. The findings of this study thereby support the common assertion that fiscal decentralization can indeed lead to more efficient production of local public goods, but also highlights the necessary conditions to make this happen. --
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Bibliographic InfoPaper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Göttingen 2007 with number 16.
Date of creation: 2007
Date of revision:
Other versions of this item:
- Uchimura, Hiroko & Jütting, Johannes P., 2009. "Fiscal Decentralization, Chinese Style: Good for Health Outcomes?," World Development, Elsevier, vol. 37(12), pages 1926-1934, December.
- Hiroko Uchimura & Johannes P. Jütting, 2007. "Fiscal Decentralisation, Chinese Style: Good for Health Outcomes?," OECD Development Centre Working Papers 264, OECD Publishing.
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-01 (All new papers)
- NEP-CNA-2007-12-01 (China)
- NEP-DEV-2007-12-01 (Development)
- NEP-HEA-2007-12-01 (Health Economics)
- NEP-PBE-2007-12-01 (Public Economics)
- NEP-TRA-2007-12-01 (Transition Economics)
- NEP-URE-2007-12-01 (Urban & Real Estate Economics)
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