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Fiscal Decentralization, Budgetary Transparency, and Local Government Size in China

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  • Shujian Zhang

Abstract

This article makes use of panel data for 31 provinces between 1985 and 2010 and specifies a dynamic panel model to investigate the determinants of local government size in China and achieved several conclusions: (1) the fiscal decentralization since TSS reform in 1994 has increased the local government size; (2) budgetary transparency has a U-shape nonlinear effect on local government size; (3) fiscal revenue is the important factor to drive the overexpansion of local government size in China; and (4) local government size has a strong dependence of past path.

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  • Shujian Zhang, 2016. "Fiscal Decentralization, Budgetary Transparency, and Local Government Size in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(7), pages 1679-1697, July.
    • Handle: RePEc:mes:emfitr:v:52:y:2016:i:7:p:1679-1697
    DOI: 10.1080/1540496X.2016.1142213
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    Cited by:

    1. Pedro Jorge Holanda Figueiredo Alves & Jevuks Matheus Araujo & Ana Karolina Acris Melo, 2023. "Fiscal decentralization and economic growth: evidence from Brazilian states," Public Sector Economics, Institute of Public Finance, vol. 47(2), pages 255-280.
    2. Muhammad Syauqi Qur’ani Putra Ariva & Ermawati, 2020. "Determinants Influencing the Level of Corruption in Indonesia Local Governments," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 34-42.

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