| ID | 160859 |
| Title Proper | Intra‐provincial revenue sharing and the subnational government's fiscal capacity in China |
| Other Title Information | the case of Zhejiang province |
| Language | ENG |
| Author | Qian, Tao ; Zhang, Qi |
| Summary / Abstract (Note) | This study investigates whether the tax‐sharing system has deteriorated the fiscal capacity of subnational governments by analyzing how fiscal revenues are divided between provincial and sub‐provincial governments. Our study of county‐level fiscal data from Zhejiang Province in China during 1994–2007 shows that intra‐provincial revenue‐sharing rules favor county governments in two ways: (i) they improve county governments ‘fiscal autonomy in terms of using their own revenues; and (ii) they enhance county governments ‘fiscal capacity through province‐to‐county general transfers. In addition, we find that intra‐provincial fiscal revenue‐sharing rules and transfers reduce fiscal disparity between counties. |
| `In' analytical Note | China and World Economy Vol. 26, No.4; Jul-Aug 2018: p.24-40 |
| Journal Source | China and World Economy 2018-08 26, 4 |
| Key Words | Local Government ; Fiscal Capacity ; Intra-Provincial Fiscal System |