A Political Economy Perspective of the Chinese Government Tactical Behavior

Abstract

In the last decades China has experienced a sustained economic growth that has led to an exceptional increase in its income. Thanks to this performance, China is now one of the main actors on the world economic scene but, in spite of this economic opening, there has been no political opening and not all regions and social groups have equally benefited from the fast growth of the last decades. In the paper I will investigate the tactical behavior kept by the Chinese government in order to pursue economic growth and maintain the power through this development phase. In particular, I will analyze the structural, political and economic determinants of public expenditure and revenue at a local government level in the different Chinese regions between 1995 and 2007. The issue is important in order to the shed some light on the determinants of the government's behavior and to provide some insight on possible future evolutions in Chinese political life.