Fiscal decentralization, fiscal reform, and economic growth in china

Ding, Yi; McQuoid, Alexander F.; Karayalçın, Cem

doi:10.1016/j.chieco.2018.08.005

Cited by 90 publications

(51 citation statements)

References 15 publications

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“…As an important institutional reform, China's fiscal decentralization is considered by many scholars and experts to be a possible breakthrough for future reform. For instance, as Ding et al (2019) summarize in a recent study, because the current fiscal decentralization does not effectively address the issue of extra-budgetary revenues which essentially gave implicit support to local governments that seek supplementary resources for local economic development, the future reform direction of decentralization should be the devolution of decision-making powers to local governments.…”

Section: Introductionmentioning

confidence: 99%

China's fiscal decentralization and environmental quality: theory and an empirical study

et al. 2019

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As a wide-reaching institutional reform, China's fiscal decentralization was launched in the early 1980s to encourage provincial economic growth by granting more financial autonomy to provincial governments. In this paper, the impact of fiscal decentralization on China's environmental quality is investigated both theoretically and empirically. A neoclassical model is developed based on the primary characteristics of China's fiscal decentralization. Using provincial panel data for the period 1995-2015, a two-equation regression model is employed to empirically verify the three propositions of the theoretical model: (1) there exists an inverted-U shaped relationship between fiscal decentralization and GDP per capita; (2) fiscal decentralization is positively related to GDP per capita at the steady state; (3) there is an inverted-U shaped Environmental Kuznets Curve relationship between pollution emissions and economic growth.

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Section: Introductionmentioning

confidence: 99%

China's fiscal decentralization and environmental quality: theory and an empirical study

et al. 2019

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“…On the other hand, negative externalities of fiscal decentralisation regarding industrial structure persist. Under the system of fiscal decentralisation in China, local governments are free to choose policies according to their demand (Ding et al, 2019). To pursue capital investment and economic growth, governments intervene inappropriately in enterprises, which can cause the enterprises to lose their dominant positions.…”

Section: Fiscal Decentralisation and Industrial Structurementioning

confidence: 99%

Can fiscal decentralisation regulate the impact of industrial structure on energy efficiency?

Wang

Hua

et al. 2020

Economic Research-Ekonomska Istraživanja

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This study applies the slack-based measure-data envelopment analysis (SBM-DEA) method to measure energy efficiency and tests the spatial spill-over effects of fiscal decentralisation, industrial structure and energy efficiency using the spatial Durbin model. The results show that China's energy efficiency presents a clear geographical step distribution, and the Eastern and Western regions have higher energy efficiency than the Central region. Fiscal decentralisation has a positive effect on the energy efficiency of the Eastern and Central regions by upgrading the industrial structure. In addition, fiscal decentralisation has significant, positive externalities on the surrounding areas, promoting environmental protection and energy conservation in all regions of China. The results are in line with the tenets of environmental federalism (Oates & Schwab): through the allocation and transfer of industrial factors, fiscal decentralisation affects energy governance. Therefore, local governments should formulate policies and targets according to their regions' different economic development levels, and the Central and Western areas, which have greater space for improvement and low energy efficiency, should receive attention to balance regional differences.

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“…In addition, from the substance point of view, there is a problem that the budget is a planning tool that should provide guidance in achieving organizational goals, so in substance it should contain an activity plan in accordance with the needs of each organization.Budgeting can determine the direction and policies of an organization. Budgeting is also a guideline in implementing various government and development activities.Budgeting is also a decision-making tool related to community needs and problems.In addition, budgeting is also a political tool that functions to determine political priorities which are manifested in the form of a budget (Bryer, 2018;Flink & Molina, 2017;Malgwi & Unegbu, 2012;Schick, 1969).In preparing village budgets, the Village Government in Indonesia refers to the Regulation of the Minister of Villages number 17 of 2017 concerning priority for the use of village funds, including:finance the implementation of program activities in the field of Village development, empowerment of Village communities, and finance the implementation of cross-sectoral programs and activities.Based on the results of previous research, it was found that most of the village budget allocations were only used for physical construction of infrastructure and procurement of goods.This has resulted in an increase in the welfare of rural communities and the inability of human development realized through the village budget.Whereas in theory, the existence of fiscal decentralization should be able to create more effective public services and human development, increase public participation, democracy and equity, and ultimately increase economic growth and social welfare (Bird & Vaillancourt, 2009;Ding et al, 2019;Nursini & Tawakkal, 2019;Qiao et al, 2019;Williamson, 2010).Villages in Banyumas Regency also experience budgeting problems. With 301 villages, Banyumas has the potential to develop its territory based on the development of rural areas.The budgeting problem that is also experienced by villages in Banyumas Regency is that the potential for human development is not optimal when viewed from the education sector.…”

Section: Introductionmentioning

confidence: 99%

Rural Budgeting Organization in Indonesia

Kurniasih¹

2020

the int. jou. soc. hum. inve,

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The direction of research development in the realm of public sector budgets always pays attention to contemporary issues. Therefore, through research on public budgeting in the context of this village, it is hoped that it can support the realization of the direction of developing studies in the field of public policy and public administration. This study aims to produce a public budgeting model based on the basic service needs of rural communities in Banyumas Regency. This study aims to determine the direction of budget policies that support the increase in the level of public education. This article tries to explore the extent of the village government's commitment to human development issues through community empowerment and community development organized by the village government through the village budget. The research method uses a case study technique, in which the location of the research sample is selected by using area sampling technique. This article is expected to provide input to local and village governments regarding improving the quality of village budgeting. The results of this study provide an overview of the direction of policies undertaken by the village government and its relation to mapping the priority needs of the village community.

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Fiscal decentralization, fiscal reform, and economic growth in china

Cited by 90 publications

References 15 publications

China's fiscal decentralization and environmental quality: theory and an empirical study

China's fiscal decentralization and environmental quality: theory and an empirical study

Can fiscal decentralisation regulate the impact of industrial structure on energy efficiency?

Rural Budgeting Organization in Indonesia

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