IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v57y2023i11p2307-2322.html
   My bibliography  Save this article

Growth versus equity: the effects of centralized fiscal transfers on Chinese provinces

Author

Listed:
  • Kian Ong
  • Kent Matthews
  • Baoshun Wang

Abstract

Centralized fiscal transfers to the provinces are the principal means of reducing income inequalities in China. The coastal provinces are the main transfer donors to the poorer provinces. We evaluate if the equity objective sacrifices aggregate growth using four panel vector auto-regressions (PVARs) for four geographical regions of Chinese provinces. The PVARs are estimated for centralized transfers, government spending, taxes and output from 1994 to 2018, whether or not transfers sacrifice growth depends on geography. Transfers reduce inequality and generate growth in the middle provinces; reduce inequality but sacrifice growth in the western provinces; and worsen inequality and sacrifice growth in the northeast provinces.

Suggested Citation

  • Kian Ong & Kent Matthews & Baoshun Wang, 2023. "Growth versus equity: the effects of centralized fiscal transfers on Chinese provinces," Regional Studies, Taylor & Francis Journals, vol. 57(11), pages 2307-2322, November.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:11:p:2307-2322
    DOI: 10.1080/00343404.2022.2160868
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2022.2160868
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2022.2160868?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:57:y:2023:i:11:p:2307-2322. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.