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Competitive Governments, Fiscal Arrangements, and the Provision of Local Public Infrastructure in China

A Theory-driven Study of Gujiao Municipality

Bibliographic Data

ID3838270
AuthorsCarsten Herrmann-Pillath, Carsten Herrmann Pillath (0000-0001-6078-0078, Institute for Comparative Research into Culture and Economic Systems at Witten/Herdecke University, Germany), Feng Xingyuan (Institute for Comparative Research into Culture and Economic Systems at Witten/Herdecke University, Germany, and Rural Development Institute, Chinese Academy of Social Sciences in the PRC)
Year2004
Volume18
Issue3
Pages373-428
Publication date2004-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueChina Information (JOURNAL)
Journal identifiersISSN: 0920-203X • E-ISSN: 1741-590X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0920203x04047622
OpenAlexW2020871736
LanguageEN
Citations received12
References cited22

This article introduces the analytical framework of "government competition", which encompasses current models of Chinese local government like the "developmental" or "entrepreneurial state" as special cases. The argument is based on a detailed empirical case study of Gujiao Municipality (Shanxi Province) which is put into perspective with reference to two other cases (Tongxiang, Zhejiang Province, and Zhangjiagang, Jiangsu Province). It is argued that the specific interaction between fiscal reforms and local approaches to infrastructure finance is the outcome of vertical and horizontal competition among governments. This competition is conceived as a complex system of formal and informal institutions undergoing endogenous change. Rooted in historically determined institutions like the regional property rights system in local resources, the system evolves through political entrepreneurship crafting competitive strategies and institutional innovations. The peculiar features of Chinese local government like budgetary dualism, local resource ownership or fiscal bargaining should not be conceived as "policy failures" in terms of deviations from centrally imposed formal institutions. They are defining features of the institutional framework of government competition in China, in which the central government is only one player

Argument (complex analysis · Business · Central government · China · Competition (biology · Economic system · Economics · Government (linguistics · Institutional analysis · Local government · Macroeconomics · Market economy · Political science · Politics · Property rights · Public finance · Sociology · China's Socioeconomic Reforms and Governance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Public Administration

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Unique citing works12
Citations per year0.63
Citation span2007 - 2022 (16)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 11

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