China’S Emerging Tax Regime: Devolution, Fiscal Federalism, or Tax Farming?

44 Pages Posted: 19 Jan 2005

See all articles by Barbara Krug

Barbara Krug

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Ze Zhu

Erasmus Research Institute of Management (ERIM)

H. Hendrischke

University of New South Wales (UNSW) - Faculty of Arts and Social Sciences

Date Written: January 1, 2004

Abstract

China like other transition economies needs to establish a tax regime compatible with a market economy. The paper singles out the general and China-specific features by which national legislation attempts to accompany economic transformation. Based on an empirical study in two provinces this paper shows that without including local government agencies and their budgets, China’s fiscal federalism cannot be analysed. This paper argues that China’s emerging tax regime depends on the institutional design that shapes the interaction between firms (as major tax payers at the local level), local government agencies, and the national tax administration.

Keywords: Tax Regime, Fiscal Federalism, Tax Farming, China, transition economy

JEL Classification: M, F23, H20, M14, H70, P35

Suggested Citation

Krug, Barbara and Zhu, Ze and Hendrischke, Hans, China’S Emerging Tax Regime: Devolution, Fiscal Federalism, or Tax Farming? (January 1, 2004). ERIM Report Series Reference No. ERS-2004-113-ORG. Available at SSRN: https://ssrn.com/abstract=650830

Barbara Krug (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Ze Zhu

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
Department of Organization & Personnel Management
3000 DR Rotterdam
Netherlands
+31 10 408 2261 (Phone)
+31 10 408 9015 (Fax)

Hans Hendrischke

University of New South Wales (UNSW) - Faculty of Arts and Social Sciences ( email )

Sydney
Australia
+61 2 9385 2187 (Phone)
+61 2 9385 1190 (Fax)

HOME PAGE: http://languages.arts.unsw.edu.au/staff/staff.php?first=Hans&last=Hendrischke

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