Skip to main content

Local Government Fragmentation and Fiscal Disparity Across Chinese Cities

  • Chapter
  • First Online:
  • 723 Accesses

Part of the book series: Governing China in the 21st Century ((GC21))

Abstract

This chapter attempts to investigate the impact of intra-city government structure on within-city fiscal disparity across Chinese cities. We focus on fiscal disparity because local governments’ fiscal capacities affect their ability to provide public services, and disparity in public service accessibility increases income inequality.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Alderson, A. S., & Nielsen, F. (2002). Globalization and the Great U-Turn: Income Inequality Trends in 16 OECD Countries1. American Journal of Sociology, 107(5), 1244–1299.

    Article  Google Scholar 

  • Bahl, R., Martinez-Vazquez, J., & Sjoquist, D. L. (1992, October). Central City-Suburban Fiscal Disparities. Public Finance Quarterly, 20(4), 420–32.

    Google Scholar 

  • Bernstein, T. P., & Lü, X. (2003). Taxation Without Representation in Contemporary Rural China (Vol. 37). Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Bird, R. M., & Wong, C. P. (2005). China’s Fiscal System: A Work in Progress (Rotman School of Management Working Paper, 07-11).

    Google Scholar 

  • Bischoff, K. (2008). School District Fragmentation and Racial Residential Segregation: How Do Boundaries Matter? Urban Affairs Review, 44(2), 182–217.

    Article  Google Scholar 

  • Boyne, G. A. (1992). Local Government Structure and Performance: Lessons from America. Public Administration, 70(3), 333–357.

    Google Scholar 

  • Bradbury, K. L., Ladd, H. F., Perrault, M., Reschovsky, A., & Yinger, J. (1984). State Aid to Offset Fiscal Disparities Across Communities. National Tax Journal, 37(2), 151–170.

    Google Scholar 

  • Clark David, E., & Herrin, W. E. (2000). The Impact of Public School Attributes on Home Sale Prices in California. Growth and Change, 31(3), 385–407.

    Article  Google Scholar 

  • Dowding, K., & Mergoupis, T. (2003). Fragmentation, Fiscal Mobility, and Efficiency. Journal of Politics, 65, 1190–1207.

    Article  Google Scholar 

  • Downs, A. (1994). Links Between Central Cities and Suburbs, in New Visions for Metropolitan America. Washington DC: The Brookings Institution.

    Google Scholar 

  • Fack, G., & Grenet, J. (2010). When Do Better Schools Raise Housing Prices? Evidence from Paris Public and Private Schools. Journal of Public Economics, 94(1), 59–77.

    Article  Google Scholar 

  • Feiock, R. C., & Clingermayer, J. (1986). Municipal Representation, Executive Power, and Economic Development Policy Activity. Policy Studies Journal, 15(2), 211–229.

    Article  Google Scholar 

  • Ferguson, R. F., & Ladd, H. F. (1985). Measuring the Fiscal Capacity of US Cities. State, Local, and Intergovernmental Center/John F. Kennedy School of Government/Harvard University.

    Google Scholar 

  • García, J., Montolio, D., & Raya, J. M. (2010). Local Public Expenditures and Housing Prices. Urban Studies, 47(7), 1501–1512.

    Article  Google Scholar 

  • Gibbons, S., Machin, S., & Silva, O. (2013). Valuing School Quality Using Boundary Discontinuities. Journal of Urban Economics, 7, 15–28.

    Article  Google Scholar 

  • Hill, R. C. (1974). Separate and Unequal: Governmental Inequality in the Metropolis. American Political Science Review, 68, 1557–1568.

    Article  Google Scholar 

  • Hofman, B., & Guerra, S. C. (2004). Fiscal Disparities in East Asia: How Large and Do They Matter?. East Asia Decentralizes: Making Local Government Work, 67–83.

    Google Scholar 

  • Hu, Y. (2009). The Model of Urban Fiscal System Reform: The Case of Shanghai. Public Finance Research, 5, 40–42. (in Chinese).

    Google Scholar 

  • Jimenez, B. S. (2014). Separate, Unequal, and Ignored? Interjurisdictional Competition and the Budgetary Choices of Poor and Affluent Municipalities. Public Administration Review, 74(2), 246–257.

    Article  Google Scholar 

  • Jimenez, B. S., & Hendrick, R. (2010). Is Government Consolidation the Answer? State and Local Government Review, 42, 258–270.

    Article  Google Scholar 

  • Jin, H., Qian, Y., & Weingast, B. R. (2005). Regional Decentralization and Fiscal Incentives: Federalism, Chinese Style. Journal of Public Economics, 89, 1719–1742.

    Article  Google Scholar 

  • Korsu, E., & Wenglenski, S. (2010). Job Accessibility, Residential Segregation and Risk of Longterm Unemployment in the Paris Region. Urban Studies, 47, 2279–2324.

    Article  Google Scholar 

  • Ladd, H. F. (1994). Measuring Disparities in the Fiscal Condition of Local Governments. Fiscal Equalization for State and Local Government Finance, 21–53 (Westport/London: Greenwood, Praeger with National Tax Association).

    Google Scholar 

  • Lewis James, H., & Hamilton, D. K. (2011). Race and Regionalism: The Structure of Local Government and Racial Disparity. Urban Affairs Review, 47(3), 349–384.

    Article  Google Scholar 

  • Li, H., Campbell, H., & Fernandez, S. (2013). Residential Segregation, Spatial Mismatch and Economic Growth Across US Metropolitan Areas. Urban Studies, 50(13), 2642–2660.

    Article  Google Scholar 

  • Li, H., Wang, Q., Shi, W., Deng, Z., & Wang, H. (2015). Residential Clustering and Spatial Access to Public Services in Shanghai. Habitat International, 46, 119–129.

    Article  Google Scholar 

  • Littell, R. C., Henry, P. R., & Ammerman, C. B. (1998). Statistical Analysis of Repeated Measures Data Using SAS Procedures. Journal of Animal Science, 76(4), 1216–1231.

    Article  Google Scholar 

  • Liu, Y., & Martinez-Vazquez, J. (2014). Interjurisdictional Tax Competition in China. Journal of Regional Science, 54(4), 606–628.

    Article  Google Scholar 

  • Lobao, L. M., Hooks, G., & Tickamyer, A. R. (Eds.). (2007). The Sociology of Spatial Inequality. Albany: SUNY Press.

    Google Scholar 

  • Lü, X., & Landry, P. F. (2014). Show Me the Money: Interjurisdiction Political Competition and Fiscal Extraction in China. American Political Science Review, 108(03), 706–722.

    Article  Google Scholar 

  • Massey, D. S., & Denton, N. A. (1993). American Apartheid: Segregation and Marking of the Underclass. Cambridge, MA: Harvard University.

    Google Scholar 

  • Miller, D. (2002). The Regional Governing of Metropolitan America. Boulder: Westview Press.

    Google Scholar 

  • Mora, M., & Varsano, R. (2001). Fiscal Decentralization and Subnational Fiscal Autonomy in Brazil: Some Facts of the Nineties (IPEA Working paper No. 854).

    Google Scholar 

  • Oakerson, R. (1999). Governing Local Public Economics: Creating the Civic Metropolis. Oakland: Institute of Contemporary Studies Press.

    Google Scholar 

  • Oates, W. E. (1969). The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis. The Journal of Political Economy, 77(6), 957.

    Article  Google Scholar 

  • Oi, J. C., Babiarz, K. S., Zhang, L., Luo, R., & Rozelle, S. (2012). Shifting Fiscal Control to Limit Cadre Power in China’s Townships and Villages. The China Quarterly, 211, 649–675.

    Article  Google Scholar 

  • Peterson Paul, E. (1981). City Limits. Chicago: The University of Chicago Press.

    Book  Google Scholar 

  • Raudenbush, S. W., & Bryk, A. S. (2002). Hierarchical Linear Models: Applications and Data Analysis Methods (Vol. 1). London: Sage.

    Google Scholar 

  • Rusk, D. (1995). Cities Without Suburbs. Washington, DC: Woodrow Wilson Center Press.

    Google Scholar 

  • Schneider, M. (1989). The Competitive City: The Political Economy of Suburbs. Pittsburgh: The University of Pittsburgh Press.

    Google Scholar 

  • Swanstrom, T., Dreier, P., & Mollenkopf, J. (2002). Economic Inequality and Public Policy: The Power of Place. City and Community, 1(4), 349–372.

    Article  Google Scholar 

  • Tiebout Charles, M. (1956). Pure Theory of Local Expenditures. Journal of Political Economy, 64, 416–424.

    Article  Google Scholar 

  • Tsui, K. Y. (2005). Local Tax System, Intergovernmental Transfers and China’s Local Fiscal Disparities. Journal of Comparative Economics, 33(1), 173–196.

    Article  Google Scholar 

  • Wilson, W. J. (1987). The Truly Disadvantaged: The Inner City, the Underclass, and Public Policy. Chicago: University of Chicago Press.

    Google Scholar 

  • Wolkoff, M. J. (1992). Is Economic Development Decision Making Rational? Urban Affairs Review, 27(3), 340–355.

    Article  Google Scholar 

  • World Bank. (2002). China: National Development and Subnational Finance: A Review of Provincial Expenditure. Washington, DC: World Bank.

    Google Scholar 

  • Wu, F. (2002). China’s Changing Urban Governance in the Transition Towards a More Market-Oriented Economy. Urban Studies, 39(7), 1071–1093.

    Article  Google Scholar 

  • Zhang, J. (2011). Interjurisdictional Competition for FDI: The Case of China’s “Development Zone Fever”. Regional Science and Urban Economics, 41(2), 145–159.

    Article  Google Scholar 

  • Zhao, Z. J. (2009). Fiscal Decentralization and Provincial-Level Fiscal Disparities in China: A Sino-US Comparative Perspective. Public Administration Review, 69(s1), S67–S74.

    Article  Google Scholar 

  • Zheng, S., & Kahn, M. E. (2008). Land and Residential Property Markets in a Booming Economy: New Evidence from Beijing. Journal of Urban Economics, 63(2), 743–757.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Li, H., Wang, Q., Zheng, C. (2018). Local Government Fragmentation and Fiscal Disparity Across Chinese Cities. In: Ye, L. (eds) Urbanization and Urban Governance in China. Governing China in the 21st Century. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-57824-2_10

Download citation

Publish with us

Policies and ethics