Provincial public expenditure in China: a tale of pro-cyclicality
Résumé
This paper examines the cyclicality of provincial expenditure inChina during
the period 1978–2013. Using panel data for analysis, it assesses whether provincial
expenditure has been pro-cyclical. Pro-cyclicality is found to be a regular feature of
provincial fiscal policy. This pro-cyclicality occurs both in times of low and high growth
rates and has markedly intensified since 1994 with the increased autonomy of provinces.
The paper further finds that the pro-cyclicality bias is mitigated when financial constraints
are relaxed, the remaining political life of the governor is long, government
efficiency is strong, corruption incidence is low, and governments are large.
Domaines
Economies et financesOrigine | Fichiers produits par l'(les) auteur(s) |
---|