The “growth-first strategy” and the imbalance between consumption and investment in China

Du, Julan; Fang, Hongsheng; Jin, Xin

doi:10.1016/j.chieco.2014.09.002

Cited by 33 publications

(9 citation statements)

References 52 publications

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“…On the one hand, VFIs distort the fiscal spending behavior of local governments, resulting in biased investment. China is a country with “political centralisation and economic decentralisation” (Du et al 2014 ). The subordinate relationship between governments is the most basic feature of the Chinese government structure.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

How do vertical fiscal imbalances affect energy efficiency? The role of government spending on science and technology

Feng

Liu²,

2023

Environ Sci Pollut Res

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How to improve energy efficiency is a practical issue of common concern around the world. In China, vertical fiscal imbalances (VFIs) generated under the existing fiscal system may have a significant impact on energy efficiency through government spending on science and technology (S&T). However, this potential relationship has not been explored in the literature. In this work, we aim to address this gap. Using Chinese provincial panel data from 2001 to 2017, this study empirically examines the relationship between VFIs and energy efficiency through a mediation model. The results show that VFIs greatly suppress energy efficiency. We further find that VFIs indirectly affect energy efficiency by reducing government spending on S&T. The results show significant regional heterogeneity. The intermediary role of government S&T expenditure is more significant in inland areas than in coastal areas. Therefore, to improve energy efficiency and achieve sustainable development, the Chinese government should focus on innovative reform of the existing fiscal system and reduce VFIs. In addition, the government should focus on fiscal spending in the field of S&T to promote technological innovation to guarantee the improvement of energy efficiency. Inland areas should pay particular attention to this issue.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

How do vertical fiscal imbalances affect energy efficiency? The role of government spending on science and technology

Feng

Liu²,

2023

Environ Sci Pollut Res

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“…This system leads to a fiscal expenditure structure distortion. Infrastructure items are emphasized while non-productive expenditure items are ignored [ 25 ]. Fiscal decentralization will encourage local governments to relax environmental regulations and reduce their efforts to protect the environment, and thus accelerate the local environmental pollution [ 22 ].…”

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

Fiscal Decentralization and Local Environmental Pollution in China

Guo

Wen

et al. 2020

IJERPH

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Fiscal decentralization is one of the tools for the central government to engage local governments in environment management. However, its effects are inconclusive. This paper aims to examine the impact of fiscal decentralization on environmental pollution and the role of government environmental preference in China’s provinces. The results show that fiscal revenue decentralization exacerbates local environmental pollution more seriously than expenditure decentralization. This negative environmental effect of fiscal decentralization could be moderated by government environmental preference. Based on our findings, it is recommended that China’s local governments should improve environmental preference so that fiscal decentralization can create a win–win situation for the economy and environment. Furthermore, the different effects of fiscal revenue and expenditure decentralization create a necessity for differentiated management of fiscal decentralization by the central and local governments.

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“…Previous studies have argued that moderate LFP would promote economic growth because the government would tend to support local tax-focused enterprises and local high-tax industries (e.g., property, construction, and industry), thereby driving economic growth [ 9 ]. However, unbalanced industrial development caused by excessive fiscal pressure can lead to unsustainable economic development [ 10 , 11 ].…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Local Fiscal Pressure and Public Health: Evidence from China

Zhang¹,

Feng

Wang³

et al. 2023

IJERPH

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Under the dual challenges of global downward economic pressure and the COVID-19 pandemic, studying the impact of local government fiscal pressure on public health is a meaningful endeavor. First, this paper analyzes the impact of local government fiscal pressure on public health and clarifies its impact mechanisms. Second, by utilizing panel data of 31 Chinese provinces from 2000 to 2020, two-way fixed-effects and mediating-effects models are developed to identify the effects and impact mechanisms of local government fiscal pressure on public health. The results show that local government fiscal pressure can be detrimental to public health through three main mechanisms: reducing public health fiscal expenditures, hindering industrial structure upgrading, and exacerbating environmental pollution. Heterogeneity analysis finds that the negative effects of local government fiscal pressure on public health mainly exist in Central and Western China. Accordingly, three policy implications are proposed: optimizing the fiscal system, accelerating industrial upgrading, and improving the appraisal system of local officers.

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The “growth-first strategy” and the imbalance between consumption and investment in China

Cited by 33 publications

References 52 publications

How do vertical fiscal imbalances affect energy efficiency? The role of government spending on science and technology

How do vertical fiscal imbalances affect energy efficiency? The role of government spending on science and technology

Fiscal Decentralization and Local Environmental Pollution in China

Local Fiscal Pressure and Public Health: Evidence from China

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