Transfer-based decentralisation, economic growth and spatial inequality: Evidence from China’s 2002–2003 tax sharing reform (Record no. 13224)
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| fixed length control field | 02219nab a2200217 4500 |
| 005 - DATE & TIME | |
| control field | 20221003110637.0 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION | |
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| 100 ## - MAIN ENTRY--PERSONAL NAME | |
| Personal name | Fan, Fan |
| 245 ## - TITLE STATEMENT | |
| Title | Transfer-based decentralisation, economic growth and spatial inequality: Evidence from China’s 2002–2003 tax sharing reform |
| Statement of responsibility | Fan Fan |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT) | |
| Place of publication, distribution, etc | London: |
| Name of publisher, distributor, etc | Sage, |
| Date of publication, distribution, etc | 2020. |
| 300 ## - PHYSICAL DESCRIPTION | |
| Pages | Vol 57, issue 4, 2020: (806–826 p.) |
| 520 ## - SUMMARY, ETC. | |
| Summary, etc | China has adopted a transfer-based fiscal decentralisation scheme since the mid-1990s. In the 1994 tax sharing reform, the central government significantly raised its share of government revenue vis-à-vis local governments by taking most of the newly created value-added tax on manufacturing. One aim for the adoption of the transfer-based fiscal scheme was to channel more funds to less developed regions and rural areas, and to alleviate growing interregional inequality and urban–rural income disparity. In 2002 and 2003 the Chinese central government further grabbed 50% and 60%, respectively, of the income taxes previously assigned only to local governments while providing more fiscal transfers to the country’s poor regions and the countryside. Utilising the 2002–2003 change in China’s central–local tax sharing regime as an exogenous policy shock, we employ a Simulated Instrumental Variable approach to causally evaluate the effects of the policy shock on growth, interregional inequality and urban–rural disparity. We find the lower local tax share dis-incentivised local governments and led to lower growth. Although higher central transfers helped to reduce interregional inequalities in per capita GDP and per capita income, the equalising effects were only present for urban incomes. We argue that transfer-based decentralisation without bottom-up accountability was detrimental to economic growth and had limited impact on income redistribution. |
| 700 ## - Added Entry Personal Name | |
| Added Entry Personal Name | Li, Ming |
| 700 ## - Added Entry Personal Name | |
| Added Entry Personal Name | Tao, Ran |
| 700 ## - Added Entry Personal Name | |
| Added Entry Personal Name | Yang, Dali |
| 773 0# - HOST ITEM ENTRY | |
| Host Biblionumber | 8843 |
| Host Itemnumber | 16581 |
| Place, publisher, and date of publication | London Sage Publications Ltd. 1964 |
| Title | Urban studies |
| International Standard Serial Number | 0042-0980 |
| 856 ## - ELECTRONIC LOCATION AND ACCESS | |
| Uniform Resource Identifier | https://doi.org/10.1177/0042098019856780 |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) | |
| Koha item type | Articles |
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