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Decentralizing China

Analysis of central strategies in China's fiscal reforms

Bibliographic Data

ID12422207
AuthorsJing Vivian Zhan (0000-0002-3054-0265, Chinese University of Hong Kong, corresponding author)
Year2009
Volume18
Issue60
Pages445-462
Publication date2009-05-19
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Contemporary China (JOURNAL)
Journal identifiersISSN: 1067-0564 • E-ISSN: 1469-9400
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/10670560902770628
OpenAlexW2020966599
LanguageEN
Citations received8

China's post-Mao reforms have devolved significant economic and fiscal power from central to local governments. However, decentralization from above involves political risks: weakened central control and increased local discretion may allow local governments to engage in self-interested activities with negative externalities to other regions and even the whole nation. A crucial question thus arises: how can the national government enjoy the benefits of decentralization while at the same time keeping the undesirable local behaviors in check? Through analysis of China's fiscal reforms, this paper suggests that the institutional advantageous position of the central government and its shrewd bargaining strategies played an important role in helping the central government maintain control over the fiscal system, inducing mutually acceptable outcomes for both the center and localities

Bargaining power · Business · Central government · China · Control (management · Decentralization · Discretion · Economic policy · Economic system · Economics · Externality · fiscal federalism · Government (linguistics · Local government · Market economy · Microeconomics · Political science · Politics · Position (finance · China's Socioeconomic Reforms and Governance · Local Government Finance and Decentralization · Public Administration · Finance

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Unique citing works8
Citations per year0,47
Citation span2009 - 2024 (16)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 8

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