1st Edition

The Benefits and Costs of Fiscal Decentralization in China A Perspective of Local Government Incentives

By Ma Guangrong Copyright 2026
304 Pages 51 B/W Illustrations
by Routledge

304 Pages 51 B/W Illustrations
by Routledge

This book examines China's fiscal decentralization and its economic impact through local government incentives. It focuses on three key areas: expenditure decentralization, revenue decentralization and intergovernmental transfers. The analysis weighs the benefits and costs of these fiscal practices in terms of China's economic development. The author observes that China’s high degree of fiscal... Read more

1  Introduction  2  Enhanced Insights into Intergovernmental Fiscal Relations in China  3  Fiscal Decentralization, Government Objectives and the Provision of Public Goods  4  Fiscal Decentralization, Local Protection and Market Segmentation  5  Fiscal Decentralization and Urban-Rural Income Gap  6  An Empirical Study on the Impact of Fiscal Decentralization on the Provision of Public Goods: A Case Study of Public Security  7  Fiscal Decentralization and Regional Disparities: A Case Study on Social Security Pooling  8  Revenue Sharing and Local Government Tax Effort  9  Local Government Scale and Tax Enforcement  10  Testing the "Flypaper Effect": The Influence of Transfer Payments on Local Fiscal Expenditures  11  Effects of Transfer Payments on Regional Economic Growth: Differences between General and Special Transfer Payments  12  Impact of Transfer Payments on Population Migration  13  Conclusions and Policy Recommendations

Biography

Ma Guangrong is Professor and Vice Dean of the School of Finance at Renmin University of China. He is a Yangtze River Scholar of the Ministry of Education and the lead expert on a Major Project of the National Social Science Fund of China. His main areas of research are public finance and development economics. His research contributions have been recognized with multiple awards, including the Higher Education Outstanding Scientific Research Output Award from the Ministry of Education and the Zhang Peigang Award for Young Economists in Development Economics.