Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
991400 | World Development | 2013 | 9 Pages |
Abstract
SummaryThis study is the first attempt to examine the determinants of expenditure decentralization at sub-provincial levels in China. The Chinese central government gives detailed guidelines to local governments on public finance, but, ironically, their expenditure assignment is far from being well-regulated. Differences in fiscal decentralization on the expenditure side are enormous among local governments. Employing a panel dataset of 1995–2006, we provide empirical evidence that transfer dependency negatively affects expenditure decentralization in Chinese local governments. It suggests that intermediate governments, i.e., provincial governments, may have “grabbed” central grants for self-interests.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
ALFRED M. WU, WEN WANG,