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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

邮发代号 80-978

Frontiers of Economics in China  2007, Vol. 2 Issue (2): 237-249   https://doi.org/10.1007/s11459-007-0013-1
  本期目录 |  
Fiscal competition and the structure of local public expenditure in China
Fiscal competition and the structure of local public expenditure in China
ZHANG Henglong1, CHEN Xian2
1.China Research Center for Government Effi ciency, Shanghai University, Shanghai 201800, China; 2.School of International Business & Management, Shanghai University, Shanghai 201800, China
 全文: PDF(412 KB)  
Abstract:This article examines the impact of intergovernmental fiscal competition on local public expenditure in China under current performance assessment system in which GDP is a critical factor. First, we present the assignment of public goods and tax burden and the share of foreign direct investment (FDI) of 30 provinces, and we find that current fiscal competition in China has taken the form of public expenditure improvement accompanied by preferential tax policies. Second, we regress the share of FDI on different components of provincial public expenditure, and find that the share of FDI is correlated negatively with the public service, tax burden and health care service while positively with infrastructure development. Therefore, FDI-based infrastructural investment crowds out public services investment, which fails to support the view that fiscal competition improves social welfares.
出版日期: 2007-06-05
 引用本文:   
. Fiscal competition and the structure of local public expenditure in China[J]. Frontiers of Economics in China, 2007, 2(2): 237-249.
ZHANG Henglong, CHEN Xian. Fiscal competition and the structure of local public expenditure in China. Front. Econ. China, 2007, 2(2): 237-249.
 链接本文:  
http://academic.hep.com.cn/fec/CN/10.1007/s11459-007-0013-1
http://academic.hep.com.cn/fec/CN/Y2007/V2/I2/237
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