Fiscal Disparities Across Chinese Counties and Cities

초록

This paper analyses the source of Cina's regional disparities with a focus on per capita revenue and expenditure for all the counties and cities except those in Tibet for the year 1994. We decompose overall regional disparities in revenue and expenditure into intra-provincial, inter-provincial, intra-rural, intra-urban, and rural-urban disparities. The decomposition analysis in this study shows that the dominant sources of revenue and expediture disparities are intra-provincial and intra-rural disparities, and that the disparity within the coastal provineses rather than the gap between the coastal and interior regions is the major source of overall disparities. We also find intra-rural disparity is greater in the poorer inland-region, especially in western region rather than in the richer coastal region.