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Fiscal Federalism and Economic Reform in China

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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File URL: http://icepp.gsu.edu/files/2015/03/ispwp0313.pdf
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Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0313.

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Length: 60 pages
Date of creation: 01 May 2003
Date of revision:
Handle: RePEc:ays:ispwps:paper0313
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Fax: 404-413-0244
Web page: http://aysps.gsu.edu/isp/index.html

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  1. 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.
  2. Zhihua Zhang & Jorge Martinez-Vazquez, 2003. "The System of Equalization Transfers in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0312, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  3. Tao Zhang & Heng-fu Zou, 1996. "Fiscal decentralization, public spending, and economic growth in China," Policy Research Working Paper Series 1608, The World Bank.
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  9. 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.
  10. Shang-Jin Wei & Yi Wu, 2001. "Globalization and Inequality: Evidence from Within China," NBER Working Papers 8611, National Bureau of Economic Research, Inc.
  11. Yingyi Qian & Barry R. Weingast, 1996. "China's transition to markets: market-preserving federalism, chinese style," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 1(2), pages 149-185.
  12. 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.
  13. Jin, Hehui & Qian, Yingyi & Weingast, Barry R., 2005. "Regional decentralization and fiscal incentives: Federalism, Chinese style," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1719-1742, September.
  14. Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall.
  15. Barry Naughton, 1996. "China's Emergence and Prospects as a Trading Nation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 273-344.
  16. 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.
  17. Yingqi Wei & Xiaming Liu & David Parker & Kirit Vaidya, 1999. "The Regional Distribution of Foreign Direct Investment in China," Regional Studies, Taylor & Francis Journals, vol. 33(9), pages 857-867.
  18. 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.
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