<scp>I</scp>n Search of Fiscal Interactions: A Spatial Analysis of<scp>C</scp>hinese Provincial Infrastructure Spending

Zheng, Xunhua; Feng, Shuyi; Yu, Yihua; Song, Shunfeng

doi:10.1111/rode.12176

Cited by 6 publications

(3 citation statements)

References 58 publications

(60 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the long run, a change in government health expenditure will result in a change in GDP in the opposite direction, and a drop in government expenditure will raise GDP to some extent [52,53]. This is consistent with the theory of Zong and Muysken; that is, due to the limitations on total output, there will be a dilemma between health investment and material capital investment, so health investment may have a crowding-out effect on economic growth, leading to negative and uncertain impacts [54]. The influence coefficients of positive (β + SSE ) and negative (β − SSE ) changes in social service expenditure are 5.76 and 4.62, respectively.…”

Section: Resultssupporting

confidence: 68%

Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model

Jiang

Wang

2023

Sustainability

View full text Add to dashboard Cite

Human health capital is an important factor that affects countries’ economic development. This research explores the nonlinear effect of human health capital on economic growth and assesses the asymmetry over time. We used annual data from 1978 to 2021 in China and the nonlinear autoregressive distributed lag (NARDL) model to examine the long- and short-term effects of positive and negative human health capital shocks on economic growth. Human health capital is measured by personal health expenditure (PHE), government health expenditure (GHE), and social service expenditure (SSE). A reduction of one unit in short-term private health expenditure leads to a 7.48% decrease in GDP per capita. An increase in private health expenditure leads to an increase in GDP per capita of 3.51%. The positive (βPHE+) and negative (βPHE−) coefficients of change in long-term private health expenditure are 1.31 and 3.87, respectively. A reduction in short-term government expenditure on health leads to a 10.99% decline in GDP per capita. The positive (βGHE+) and negative (βGHE−) coefficients of long-term government health expenditure are −4.33 and 1.99, respectively. A one-unit reduction in short-term social service spending leads to a 5.56 percent drop in GDP per capita, while an increase in social service expenditure leads to a 5.97 percent increase in GDP per capita. The positive (βSSE+) and negative (βSSE−) coefficients of change in long-term social service expenditure are 5.76 and 4.62, respectively. Both private health expenditure and government health expenditure have shown significant asymmetry in their long- and short-term effects on economic growth. Human health capital that is rationally distributed can effectively enhance economic growth.

show abstract

Section: Resultssupporting

confidence: 68%

Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model

Jiang

Wang

2023

Sustainability

View full text Add to dashboard Cite

show abstract

“…For examples, the neighboring provinces of Shanghai are Jiangsu and Zhejiang, and Jiangxi's neighbors are Zhejiang, Anhui, Hubei, Hunan, Fujian and Guangdong provinces. nb it is de…ned as the log A recent study by Zheng et al (2015) …nds that infrastructure spending in a province is positively correlated with infrastructure spending in its neighboring provinces. In addition, since y it is only a¤ected by b it and k it conditional on time dummies in equation (5), instruments of b it 2 and nb it have no direct e¤ect on y it .…”

Section: Caves and Frazer (2015)mentioning

confidence: 99%

On the reverse causality between output and infrastructure: The case of China

Feng

2018

Economic Modelling

View full text Add to dashboard Cite

“…For instance, Yu et al (2013) found that local governments reduce their own health spending in response to an increase in health spending in neighboring regions, supporting the hypothesis of positive spillover. Zheng et al (2015) showed that provincial governments tend to increase their own spending as public infrastructure spending increases in neighboring countries, suggesting a positive strategic interaction in infrastructure spending by Chinese provincial governments. Given that local governments can finance public spending on capital (physical capital or human capital) with debt, the above findings also reflect the existence of spillover effects in debt competition among local governments.…”

Section: Mechanisms Of Local Public Debt Competitionmentioning

confidence: 99%

Public Debt Competition in Local China: Evidence and Mechanism of Spatial Interactions

Liu

Zheng

2022

Regional Science Policy & Practice

Self Cite

View full text Add to dashboard Cite

While there is abundant theoretical or empirical research on fiscal competition in the form of tax or spending competition, little is known about public debt competition across local jurisdictions, which substantially contributes to growing public debt and, worse, a potential local government debt crisis in China. This study provides empirical evidence from China on spatial interactions of public debt across local governments. Using a provincial panel data set from 1999 to 2016, we found that provincial governments engage in strategic interactions via local public debt. These findings are robust across several model specifications. Further analysis found strong and direct evidence of the existence of yardstick competition among local governments on debtissuing behavior.

show abstract

In Search of Fiscal Interactions: A Spatial Analysis ofChinese Provincial Infrastructure Spending

Cited by 6 publications

References 58 publications

Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model

Asymmetric Effects of Human Health Capital on Economic Growth in China: An Empirical Investigation Based on the NARDL Model

On the reverse causality between output and infrastructure: The case of China

Public Debt Competition in Local China: Evidence and Mechanism of Spatial Interactions

Contact Info

Product

Resources

About