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Local Public Goods Provision in the Post-Agricultural Tax Era in Rural China

Author

Listed:
  • Hiroshi Sato
  • Sai Ding

Abstract

This paper investigates regional differences in local public goods provision in rural area in the 2000s, using large village sample surveys (CHIP 2002 and 2007 surveys, a survey in Ningxia). Focuses are on changes in the coverage of public investment projects, regional differences in the determinants of public investment projects, and changes in the coverage of public services provided by village collectives. The main findings are as follows. First, we confirmed that coverage of public investment projects had increased in the 2000s. Second, in spite of concentration of fiscal administration into county level as one of the pillars of the reform of taxation and local fiscal system, administrative villages still played indispensable roles in local public goods provision. Third, we found that incentive of peasants, financial ability of villages, and incentive of local government affect location decision and budget structure of public investment projects and that direction and strength of such factors were different by regions.

Suggested Citation

  • Hiroshi Sato & Sai Ding, 2012. "Local Public Goods Provision in the Post-Agricultural Tax Era in Rural China," Global COE Hi-Stat Discussion Paper Series gd11-222, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hst:ghsdps:gd11-222
    as

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    File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd11-222.pdf
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    References listed on IDEAS

    as
    1. Gustafsson,Björn A. & Shi,Li & Sicular,Terry (ed.), 2008. "Inequality and Public Policy in China," Cambridge Books, Cambridge University Press, number 9780521870450.
    2. Hiroshi Sato, 2010. "Growth of Villages in China, 1990–2002," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 5(1), pages 135-149, March.
    3. Luo, Renfu & Zhang, Linxiu & Huang, Jikun & Rozelle, Scott, 2007. "Elections, fiscal reform and public goods provision in rural China," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 583-611, September.
    4. Tsai, Lily L., 2007. "Solidary Groups, Informal Accountability, and Local Public Goods Provision in Rural China," American Political Science Review, Cambridge University Press, vol. 101(2), pages 355-372, May.
    5. Wang, Shuna & Yao, Yang, 2007. "Grassroots Democracy and Local Governance: Evidence from Rural China," World Development, Elsevier, vol. 35(10), pages 1635-1649, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Local Public goods; Village; Local Government; Rural China;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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