Fiscal decentralization and political centralization in China: implications for regional inequality

cg.coverage.countryChina
cg.coverage.iso3166-alpha2CN
cg.coverage.regionOceania
cg.coverage.regionEastern Asia
cg.creator.identifierxiaobo zhang: 0000-0002-4981-9565
cg.identifier.projectIFPRI - Archive
cg.number21en
cg.reviewStatusInternal Reviewen
dc.contributor.authorZhang, Xiaoboen
dc.date.accessioned2024-11-21T09:51:26Zen
dc.date.available2024-11-21T09:51:26Zen
dc.identifier.urihttps://hdl.handle.net/10568/160644
dc.titleFiscal decentralization and political centralization in China: implications for regional inequalityen
dcterms.abstractWhile, politically speaking, China has a centralized government structure with strong top-down mandates, under the country’s current fiscal system, local governments are responsible for providing most local public goods and services. Large differences in economic structures and revenue bases exist, however, causing the implicit tax rate and fiscal burdens in support of local government functions to vary significantly across jurisdictions. Regions initially endowed with a broader nonfarm tax base do not need to rely heavily on new and existing firms to finance public goods provision, which creates a healthy investment environment in support of nonfarm sector growth. In contrast, local governments in regions where agriculture is the major economic activity spend the majority of their resources on their own operating costs, leaving little for public investment. Because of the relatively high transaction costs associated with collecting taxes from the agricultural sector, local governments tend to levy the existing nonfarm sector heavily, thereby greatly inhibiting its growth. As a result, regional differences in economic structures and fiscal dependent burdens may translate into widening gaps in equality.en
dcterms.accessRightsOpen Access
dcterms.bibliographicCitationZhang, Xiaobo. Fiscal decentralization and political centralization in China: implications for regional inequality. DSGD Discussion Paper 21. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160644en
dcterms.isPartOfDSGD Discussion Paperen
dcterms.issued2005
dcterms.languageen
dcterms.publisherInternational Food Policy Research Instituteen
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/59714en
dcterms.subjectfiscal policiesen
dcterms.subjectpublic servicesen
dcterms.subjecttaxesen
dcterms.subjectagricultural sectoren
dcterms.typeWorking Paper

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