Using a spatial econometric model, this paper investigates strategic interaction among provincial governments regarding expenditures, the mechanism behind expenditures interaction and their effects on economic growth ...Using a spatial econometric model, this paper investigates strategic interaction among provincial governments regarding expenditures, the mechanism behind expenditures interaction and their effects on economic growth in China. Our conclusion is as follows: Significant strategic interaction exists among provincial governments regarding expenditures mainly owing to fiscal competition mechanism in China, and expenditures interaction has changed significantly since tax sharing system reform, which has had positive effects on regional economic growth. This conclusion has significant implications for the optimization of public functions, size and structure of local governments in China.展开更多
基金funded by the National Natural Science Foundation of China (70750002)Department of Social Sciences, the Ministry of Education of China (08JZD0012)Department of Postgraduate Education, the Ministry of Education of China (Office of the State Council Academic Degrees Committee) (200904)
文摘Using a spatial econometric model, this paper investigates strategic interaction among provincial governments regarding expenditures, the mechanism behind expenditures interaction and their effects on economic growth in China. Our conclusion is as follows: Significant strategic interaction exists among provincial governments regarding expenditures mainly owing to fiscal competition mechanism in China, and expenditures interaction has changed significantly since tax sharing system reform, which has had positive effects on regional economic growth. This conclusion has significant implications for the optimization of public functions, size and structure of local governments in China.
