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Intergovernmental Fiscal Relations: The Chinese System in Perspective

Author

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  • Mr. Vivek B. Arora
  • Mr. John Norregaard

Abstract

This paper provides an overview of recent Chinese reforms to introduce a modern system of fiscal federalism that balances the need for central macroeconomic control with the economic advantages of decentralized government. Following a discussion of the rationale for decentralization, the paper describes the main structural and economic developments in China in this area, including their impact on economic stabilization. The key measures in the 1994 fiscal reforms as well as reform initiatives needed in the future are also discussed.

Suggested Citation

  • Mr. Vivek B. Arora & Mr. John Norregaard, 1997. "Intergovernmental Fiscal Relations: The Chinese System in Perspective," IMF Working Papers 1997/129, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1997/129
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    Citations

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    Cited by:

    1. Zhuravskaya, Ekaterina V., 2000. "Incentives to provide local public goods: fiscal federalism, Russian style," Journal of Public Economics, Elsevier, vol. 76(3), pages 337-368, June.
    2. International Monetary Fund, 2004. "Toward More Effective Redistribution: Reform Options for Intergovernmental Transfers in China," IMF Working Papers 2004/098, International Monetary Fund.
    3. Hammed Amusa & Philemon Mathane, 2007. "South Africa'S Intergovernmental Fiscal Relations: An Evolving System," South African Journal of Economics, Economic Society of South Africa, vol. 75(2), pages 265-292, June.
    4. Mr. Ehtisham Ahmad & Li Keping & Mr. Raju J Singh & Mr. Thomas J Richardson, 2002. "Recentralization in China?," IMF Working Papers 2002/168, International Monetary Fund.
    5. Fraschini, Angela, 2006. "Fiscal federalism in big developing countries: China and India," POLIS Working Papers 60, Institute of Public Policy and Public Choice - POLIS.

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