Determinants of Expenditure Decentralization: Evidence from China

Abstract

This 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

Education outlay, fiscal transfers and interregional funding equity: A county-level analysis of education finance in China

“…This may be because these transfers are mainly directed towards reducing interprovincial disparity and do not help to decrease intraprovincial inequity, which is what is measured in this chapter. The results are also consistent with the conclusion by Wu and Wang (2013) that provincial governments may have grabbed central grants for their own self-interest. Variables on government size and functions do not have statistically significant effects on funding equity.…”

Fenomena Flypaper Effect Pada Belanja Daerah Kabupaten/Kota Di Indonesia

“…Jadi, pemerintah daerah di China lebih bergantung kepada transfer dana dari pusat. Bahkan pemerintah di tingkat propinsi di China lebih mengutamakan penggunaan dana transfer untuk mereka sendiri, sehingga melalaikan perkembangan daerah di bawahnya (Wu dan Wang, 2013).…”

Betting on the strong: Local government resource allocation in China's poverty counties

“…To compensate local governments for loss of revenue following the tax-for-fee reforms, the central government introduced a system of fiscal transfers to provincial governments, which funnel funds to county governments and eventually to township governments (Yep, 2004;Oi and Zhao, 2007, 84). The outcome of these recent reforms is that the central government has further consolidated its control over revenue collection and distribution, but left local governments with increasing expenditure responsibilities (Naughton, 2007;Wu and Wang, 2013).…”