Fiscal decentralization and political centralization in China: implications for regional inequality
While, politically speaking, China has a centralized government structure with strong top-down mandates, under the country’s current fiscal system, local governments are responsible for providing most local public goods and services. Large differences in economic structures and revenue bases exist,...
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2005
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| Online Access: | https://hdl.handle.net/10568/160644 |
| _version_ | 1855538148346429440 |
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| author | Zhang, Xiaobo |
| author_browse | Zhang, Xiaobo |
| author_facet | Zhang, Xiaobo |
| author_sort | Zhang, Xiaobo |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | While, politically speaking, China has a centralized government structure with strong top-down mandates, under the country’s current fiscal system, local governments are responsible for providing most local public goods and services. Large differences in economic structures and revenue bases exist, however, causing the implicit tax rate and fiscal burdens in support of local government functions to vary significantly across jurisdictions. Regions initially endowed with a broader nonfarm tax base do not need to rely heavily on new and existing firms to finance public goods provision, which creates a healthy investment environment in support of nonfarm sector growth. In contrast, local governments in regions where agriculture is the major economic activity spend the majority of their resources on their own operating costs, leaving little for public investment. Because of the relatively high transaction costs associated with collecting taxes from the agricultural sector, local governments tend to levy the existing nonfarm sector heavily, thereby greatly inhibiting its growth. As a result, regional differences in economic structures and fiscal dependent burdens may translate into widening gaps in equality. |
| format | Artículo preliminar |
| id | CGSpace160644 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2005 |
| publishDateRange | 2005 |
| publishDateSort | 2005 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1606442025-11-06T07:20:45Z Fiscal decentralization and political centralization in China: implications for regional inequality Zhang, Xiaobo fiscal policies public services taxes agricultural sector While, politically speaking, China has a centralized government structure with strong top-down mandates, under the country’s current fiscal system, local governments are responsible for providing most local public goods and services. Large differences in economic structures and revenue bases exist, however, causing the implicit tax rate and fiscal burdens in support of local government functions to vary significantly across jurisdictions. Regions initially endowed with a broader nonfarm tax base do not need to rely heavily on new and existing firms to finance public goods provision, which creates a healthy investment environment in support of nonfarm sector growth. In contrast, local governments in regions where agriculture is the major economic activity spend the majority of their resources on their own operating costs, leaving little for public investment. Because of the relatively high transaction costs associated with collecting taxes from the agricultural sector, local governments tend to levy the existing nonfarm sector heavily, thereby greatly inhibiting its growth. As a result, regional differences in economic structures and fiscal dependent burdens may translate into widening gaps in equality. 2005 2024-11-21T09:51:26Z 2024-11-21T09:51:26Z Working Paper https://hdl.handle.net/10568/160644 en Open Access application/pdf International Food Policy Research Institute Zhang, Xiaobo. Fiscal decentralization and political centralization in China: implications for regional inequality. DSGD Discussion Paper 21. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160644 |
| spellingShingle | fiscal policies public services taxes agricultural sector Zhang, Xiaobo Fiscal decentralization and political centralization in China: implications for regional inequality |
| title | Fiscal decentralization and political centralization in China: implications for regional inequality |
| title_full | Fiscal decentralization and political centralization in China: implications for regional inequality |
| title_fullStr | Fiscal decentralization and political centralization in China: implications for regional inequality |
| title_full_unstemmed | Fiscal decentralization and political centralization in China: implications for regional inequality |
| title_short | Fiscal decentralization and political centralization in China: implications for regional inequality |
| title_sort | fiscal decentralization and political centralization in china implications for regional inequality |
| topic | fiscal policies public services taxes agricultural sector |
| url | https://hdl.handle.net/10568/160644 |
| work_keys_str_mv | AT zhangxiaobo fiscaldecentralizationandpoliticalcentralizationinchinaimplicationsforregionalinequality |