The Logic of Basic Education Provision and Public Goods Preferences in Chinese Fiscal Federalism

Abstract

Without election or re-election motivations, what factors have impacted public goods preferences in an authoritarian country such as China? More specifically, what makes political elites be devoted to or not be devoted to local public goods provision? This study, using basic education provision as an example, intends to gauge the impact of leadership selection on public goods provision in China. It is found that career trajectories of politicians have a bearing on basic education provision. The findings suggest that even under a top-down appointment system, homegrown politicians are more willing to cater to local preferences, especially on basic education provision, which suggests an extension of Riker’s theory, applied in a non-democratic regime. Numerous studies have examined the impacts of decentralization on a variety of aspects of public governance in different contexts. Nevertheless, the unique contribution of this study is its policy implication that political centralization may not be an effective solution for local public governance even in an authoritarian context.

Keywords: public goods provision; political centralization; fiscal federalism; leadership selection; Riker’s theory; China

JEL Classification: H10, H30, H41