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Deconstructing decentralization in China

Fiscal incentive versus local autonomy in policy implementation

Bibliographic Data

ID12423208
AuthorsPhilip Hsu (0000-0001-5510-7137, corresponding author), Philip S Hsu
Year2004
Volume13
Issue40
Pages567-599
Publication date2004-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Contemporary China (JOURNAL)
Journal identifiersISSN: 1067-0564 • E-ISSN: 1469-9400
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/1067056042000213409
OpenAlexW2119014362
LanguageEN
Citations received10

This article examines the congruent and conflicting effects of fiscal decentralization and power devolution—two main types of decentralization in post‐reform China—in order to tackle the insufficient distinction between them in current academic analyses. Derived from the two types of decentralization respectively are fiscal incentive and local autonomy, which influence local states' policy implementation in turnover taxation. By uncovering the unique logic of either factor, this article argues that contrary to what is widely presupposed, local autonomy is not necessarily congruent with fiscal incentive in affecting local compliance with centrally imposed policy rules during policy implementation. When power devolution and fiscal decentralization follow an internally consistent logic of decentralization as a whole by proceeding at the same pace and favoring the same specific locality, they inevitably generate conflicting effects on local states' implementation strategies. Congruent effects arise only if incoherent evolution occurs between the two types of decentralization. This paradox highlights the contradiction inveterate in the dynamics of decentralization. This argument is first developed through theoretical reasoning, and then substantiated by an empirical comparison between Guangzhou and Shanghai during 1984–1988 and 1992–1995

Argument (complex analysis · Autonomy · China · Decentralization · Devolution (biology · Economic system · Economics · Incentive · Market economy · Political economy · Political science · Power (physics · Public economics · Sociology · China's Socioeconomic Reforms and Governance · Law · Local Government Finance and Decentralization · Political Systems and Governance

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Unique citing works10
Citations per year0,63
Citation span2010 - 2025 (16)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 10

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