000 01775pab a2200229 454500
008 180718b2016 xxu||||| |||| 00| 0 eng d
100 _aZhang, Ping
245 _aFiscal decentralization, flat administrative structure, and local government size: evidence and lessons from China
260 _c2016
300 _ap.198-214.
362 _aAug
520 _aThis paper examines the effects of fiscal decentralization and flat administrative structure on local budget size and program outlays. We test three related theoretical hypotheses in China's adoption of province-over-county scheme of financial administration. We provide evidence that both decentralization of expenditure and decentralization of revenue increase the size of local budgets; that the impact of the former far outweighs that of the latter with local budgets on a rising trajectory; and that discretion grants localities more means to increase their budget. These results show that as China's reform deepens the proportion of local outlay on administration declines because of more local discretion from eliminating the prefecture bypass between the province and counties. But neither decentralization nor increased local discretion has allocated more local resources for education, and both contribute to increasing outlay on economic development. The paper formulates tentative policy recommendations that carry potential application for other countries. - Reproduced.
650 _aAdministrative structure - China
650 _aDecentralization - China
650 _aFiscal policy - China
650 _aLocal government - China
650 _aLocal government
700 _aHou, Yilin
700 _aZhu, Chunkui
773 _aPublic Administration and Development
909 _a112440
999 _c112435
_d112435