Determinants of Chinese Government Size: An Extreme Bounds Analysis (2016)
Type of ContentDiscussion / Working Papers
PublisherDepartment of Economics and Finance, University of Canterbury
This paper studies the factors associated with the size of the public sector as measured by government spending at the level of Chinese provinces using the method of extreme bounds analysis to identify robust correlates with public sector size. We find that almost all traditional “economic” and “social stability” factors are insignificant and not robust to model specification changes. In contrast, “political” factors such as the degree of fiscal decentralization and national transfers to provincial governments tend to be significant and robust. Our findings suggest that repeated government attempts to reduce the relative size of the Chinese government sector have failed because the political factors determining government spending haven’t changed.
CitationGunby PP, Jin Y (2016). Determinants of Chinese Government Size: An Extreme Bounds Analysis. Department of Economics and Finance, University of Canterbury. Christchurch, New Zealand. Department of Economics and Finance, University of Canterbury. 0-10.
This citation is automatically generated and may be unreliable. Use as a guide only.
KeywordsGovernment Size; Fiscal Decentralization; Wagner’s Law; Extreme Bounds Analysis; C52; H70; P20
ANZSRC Fields of Research44 - Human society::4408 - Political science::440807 - Government and politics of Asia and the Pacific
44 - Human society::4407 - Policy and administration::440708 - Public administration
38 - Economics::3802 - Econometrics::380203 - Economic models and forecasting
Showing items related by title, author, creator and subject.
Gunby, P.; Jin, Y. (University of Canterbury. Department of Economics and Finance, 2015)From 1982 onwards, the Chinese State Council and the National People’s Congress have had a standing policy of reducing the size of the public sector of the Chinese economy. The aim of this policy is to increase the share ...
Franklet D; Meriluoto L; Ross G; Scott C; Williams P (2018)This paper discusses the avenues through which a public implementation of blockchain could deliver efficiency gains in the running of a government. We discuss some of the current inefficiencies in recordkeeping and the ...
Tax Design and Administration in a Post - BEPS Era: A Study of Key Reform Measures in 18 Countries Sawyer AJ; Sadiq K; McCredie B (2018)The OECD’s Base erosion and Profit Shifting (BEPS) initiative is undergoing what may be the most challenging phase, namely ratification and implementation by countries and jurisdictions. In this paper we provide a ...