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Why Do More Open Chinese Provinces Have Bigger Governments?

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  • Sylviane Guillaumont Jeanneney
  • Ping Hua

Abstract

The transition of China towards a market economy was accompanied by a vast fiscal decentralization movement. Econometric analysis of the determinants of public expenditure of the Chinese provinces does not permit rejection of the hypotheses that (i) the behavior of provinces is similar to that of governments in developing economies significantly affected by external shocks, and (ii) in order to alleviate external risk, they take control of a more significant share of the revenues of the economy.

Suggested Citation

  • Sylviane Guillaumont Jeanneney & Ping Hua, 2004. "Why Do More Open Chinese Provinces Have Bigger Governments?," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 525-542, August.
    • Handle: RePEc:bla:reviec:v:12:y:2004:i:3:p:525-542
    DOI: 10.1111/j.1467-9396.2004.00465.x
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    Cited by:

    1. Estela Sáenz & Marcela Sabaté & M. Gadea, 2013. "Trade openness and public expenditure. The Spanish case, 1960–2000," Public Choice, Springer, vol. 154(3), pages 173-195, March.
    2. Estela Sáenz Rodríguez & Marcela Sabaté Sort & Mª. Dolores Gadea Rivas, 2011. "¿Condiciona la apertura exterior el tamaño del sector público? Un panorama," Hacienda Pública Española / Review of Public Economics, IEF, vol. 198(3), pages 131-149, September.
    3. Jabin Jacob, 2006. "European integration and lessons for China," Asia Europe Journal, Springer, vol. 4(4), pages 511-521, December.
    4. Ying Ding, 2007. "Fiscal Decentralization and Economic Growth in China, 1994-2002," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(3), pages 243-260.
    5. Fabrizio Carmignani & James S. Laurenceson, 2013. "Provincial business cycles and fiscal policy in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(2), pages 323-340, April.
    6. Guillaumont Jeanneney, Sylviane & Hua, Ping, 2011. "How does real exchange rate influence labour productivity in China?," China Economic Review, Elsevier, vol. 22(4), pages 628-645.

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