The Fiscal Impact of County-to-Urban District Conversion in China

Datos Bibliográficos

ID6404451
AutoresHuiping Li (0000-0002-6998-9828, Shanghai University of Finance and Economics), Hai Guo (0000-0002-7867-0237, Florida International University, autor de correspondencia), Pengju Zhang (0000-0003-4045-7243, Rutgers, the State University of New Jersey)
Año2023
Volumen59
Número3
Páginas892-917
Fecha de publicación2023-05-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaUrban Affairs Review (JOURNAL)
Identificadores de la revistaISSN: 1078-0874 • E-ISSN: 1552-8332
EditorialSAGE Publications Inc (PUBLISHER)
DOI10.1177/10780874221098152
OpenAlexW4280542735
IdiomaEN
Citas recibidas4
Referencias citadas64

Municipal annexation has been one of the most widely adopted instruments for urban growth in the United States. Scholars of public choice and regional studies have long debated the fiscal effect of local government annexation. Few studies, however, examine the fiscal effect of municipal administrative annexations in China, where prefectural cities have extensively annexed county-level governments through forcefully converting rural counties into urban districts in a top-down manner. Employing a difference-in-differences (DID) method coupled with an event study approach, we analyzed a panel data set of 282 prefectural cities from 2007 to 2015 to examine the fiscal impact of annexation in China. The findings show that prefectural cities have significantly increased their land conveyance fees through administrative annexation. Given that land conveyance fees serve as one of the most important own-source revenues at the local level, our findings shed light on the crucial link among the urbanization process, government reorganization, and local land finance in China and, potentially, in other transition countries

Annexation · Business · Central government · China · Economic growth · Economics · Geography · Government (linguistics · Land use · Local government · Panel data · Political science · Public finance · Revenue · Urbanization · China's Socioeconomic Reforms and Governance · Housing Market and Economics · Local Government Finance and Decentralization · Public Administration · Finance