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Local Governance Performance in China: A Fiscal Perspective

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  • Shujian Zhang
  • Shiyi Chen

Abstract

In this paper, we attempt to take undesirable fiscal outcomes into account and adopt the directional distance function method to calculate the efficiency scores of local governments in China. The measures indicate that the eastern provinces have higher governance performance than other regions, and, overall, governance efficiency is slightly decreasing over the period of fiscal decentralization reform. This is statistically confirmed by the following determinants analysis of governance efficiency at the second stage. The most important way to improve local governance performance is to substantially enhance the transparency of governmental fiscal behaviors by putting them under the complete budget and supervision of local legislature.

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  • Shujian Zhang & Shiyi Chen, 2014. "Local Governance Performance in China: A Fiscal Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(6), pages 119-136, November.
    • Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:119-136
    DOI: 10.1080/1540496X.2014.1013863
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    Cited by:

    1. Mingxiong Bi & Chencheng Wang & Dian Fu & Xun Tan & Shurong Yu & Junbai Pan & Kun Lv, 2022. "Chinese-Style Fiscal Decentralization, Ecological Attention of Government, and Regional Energy Intensity," Energies, MDPI, vol. 15(22), pages 1-28, November.

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