Fiscal Incentives, Public Spending, and Productivity – County-Level Evidence from a Chinese Province
(2013) In World Development 46. p.92-103- Abstract
- This article develops a new empirical approach to analyze the potential link between fiscal decentralization and economic efficiency based on a stochastic frontier model with spatial error correction. Fiscal decentralization is not considered to be a source of growth in itself but an incentive scheme that impacts local governments’ spending as a means to improve investment conditions. Panel data for Zhejiang Province between1995 and 2005 indicate that revenue and expenditure
decentralization both promoted allocative efficiency. Yet, the impact of fiscal incentives decreases with rising income inequality among county governments.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/3449945
- author
- Brehm, Stefan LU
- organization
- publishing date
- 2013
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- China, Spatial dependence, Public spending, Fiscal decentralization, Economic efficiency
- in
- World Development
- volume
- 46
- pages
- 92 - 103
- publisher
- Elsevier
- external identifiers
-
- wos:000318392600007
- scopus:84876438792
- ISSN
- 1873-5991
- DOI
- 10.1016/j.worlddev.2013.01.029
- language
- English
- LU publication?
- yes
- id
- ee67dcc3-989f-44de-aa5a-e5b5fbd2428c (old id 3449945)
- date added to LUP
- 2016-04-01 10:24:50
- date last changed
- 2022-02-10 01:54:34
@article{ee67dcc3-989f-44de-aa5a-e5b5fbd2428c, abstract = {{This article develops a new empirical approach to analyze the potential link between fiscal decentralization and economic efficiency based on a stochastic frontier model with spatial error correction. Fiscal decentralization is not considered to be a source of growth in itself but an incentive scheme that impacts local governments’ spending as a means to improve investment conditions. Panel data for Zhejiang Province between1995 and 2005 indicate that revenue and expenditure<br/><br> decentralization both promoted allocative efficiency. Yet, the impact of fiscal incentives decreases with rising income inequality among county governments.}}, author = {{Brehm, Stefan}}, issn = {{1873-5991}}, keywords = {{China; Spatial dependence; Public spending; Fiscal decentralization; Economic efficiency}}, language = {{eng}}, pages = {{92--103}}, publisher = {{Elsevier}}, series = {{World Development}}, title = {{Fiscal Incentives, Public Spending, and Productivity – County-Level Evidence from a Chinese Province}}, url = {{http://dx.doi.org/10.1016/j.worlddev.2013.01.029}}, doi = {{10.1016/j.worlddev.2013.01.029}}, volume = {{46}}, year = {{2013}}, }