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On the determinants of public infrastructure spending in Chinese cities

A spatial econometric perspective

Bibliographic Data

ID12008084
AuthorsYihua Yu (0000-0003-2709-6092, Renmin University of China), Li Zhang (0000-0002-4441-5131, Central University of Finance and Economics), Langrang Zhang (0009-0001-7157-3573, Academy of Public Finance and Public Policy, Central University of Finance and Economics, China), Fanghua Li (0000-0003-3183-9995, Renmin University of China), Xinye Zheng (0000-0002-4422-7528, Renmin University of China, corresponding author)
Year2011
Volume48
Issue3
Pages458-467
Publication date2011-08-06
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Social Science Journal (JOURNAL)
Journal identifiersISSN: 0362-3319 • E-ISSN: 1873-5355
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1016/j.soscij.2011.05.006
OpenAlexW2024544663
LanguageEN
Citations received7
References cited26

In the context of fiscal decentralization, we use cross-sectional data of 242 Chinese cities in 2005 to explore the major factors contributing to the decline of public investment. The main finding is that a city government appears to reduce its own infrastructure spending as a response to the rise of infrastructure spending of its neighboring cities, revealing evidence of positive spillover effects of public infrastructure expenditure. This paper contributes to the existing literature by providing a new perspective for understanding the decline in public investment. In addition, this paper sheds some light on the ongoing debate on the nature of government competition in China and has important implications for policy makers in making fiscal arrangements among government tiers in a decentralized economy

China · Competition (biology · Context (archaeology · Decentralization · Economics · Geography · Government (linguistics · Government spending · Investment (military · Macroeconomics · Market economy · Perspective (graphical · Political science · Politics · Public economics · Public expenditure · Public finance · Public fund · Public investment · Public spending · Spillover effect · Welfare · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization

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Unique citing works7
Citations per year0.5
Citation span2012 - 2026 (15)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 7

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