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Economic openness and public expenditure in China: a regional analysis

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  • Sylviane GUILLAUMONT JEANNENEY

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Ping HUA

    (Centre National de la Recherche Scientifique(CNRS))

Abstract

The transition of China towards a market economy was accompanied by a vast fiscal decentralisation movement. Econometric analysis of the determinants of budgetary and extra-budgetary expenditure of the provinces does not permit us to reject the hypothesis that the provinces observe a similar behaviour to governments of developing economies which are significantly affected by external shocks and that, in order to alleviate external risk, the provinces take control of a more significant share of the revenues of the economy

Suggested Citation

  • Sylviane GUILLAUMONT JEANNENEY & Ping HUA, 2000. "Economic openness and public expenditure in China: a regional analysis," Working Papers 200005, CERDI.
    • Handle: RePEc:cdi:wpaper:134
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