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Sharing Governance Costs with Society: Case Studies in Zhejiang

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  • Ren,Zhe

Abstract

This article explores the "reverse soft budget constraint" in Zhejiang, China, where local governments shift their financial burdens to enterprises and communities to exceed fiscal limits. Six case studies examine cost transfer mechanisms among rural, urban, and non-urbanized communities. The analysis emphasizes the negotiation dynamics between local governments and communities, indicating that rural communities with independent revenue sources are more susceptible to cost transfers. In contrast, urban communities rely entirely on government funding, which restricts their autonomy. The study contrasts cost transfer characteristics in coastal regions with higher economic development vis-a-vis those in inland regions.

Suggested Citation

  • Ren,Zhe, 2025. "Sharing Governance Costs with Society: Case Studies in Zhejiang," IDE Discussion Papers 960, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper960
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    File URL: https://ir.ide.go.jp/record/2001529/files/IDP000960_001.pdf
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    References listed on IDEAS

    as
    1. 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.
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    More about this item

    Keywords

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    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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