Title

Fiscal decentralization and horizontal fiscal inequality in China: New evidence from metropolitan areas

Document Type

Article

Publication Date

5-1-2013

Publication Title

Chinese Economy

Abstract

If fiscal decentralization reform and unbalanced economic growth increase horizontal fiscal inequality across China, this may deteriorate public services in underfunded regions and slow down economic growth and urbanization in the long run. Our study investigated the inequality of fiscal expenditures in metropolitan areas in China during the period 1999-2008. Although fiscal inequality increased before 2001, we found that a decreasing pattern was evident afterward. We also found that while revenue inequality was highly correlated with observed disparities in expenditures, inequality of transfers from central and provincial governments also contributed, although to a smaller extent. Guangdong, one of the most developed provinces in China, surprisingly had the highest level of intraprovincial fiscal inequality.

Volume Number

46

Issue Number

3

First Page

6

Comments

© 2013 M.E. Sharpe, Inc. All rights reserved.

State

published

Last Page

22

This document is currently not available here.

Share

COinS