Intergovernmental Fiscal Relations: The Chinese System in Perspective

Arora, Vivek B.; Norregaard, John

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Intergovernmental Fiscal Relations: The Chinese System in Perspective

IMF Working Paper No. 97/129

27 Pages Posted: 15 Feb 2006

See all articles by Vivek B. Arora

Vivek B. Arora

International Monetary Fund (IMF) - African Department

John Norregaard

Independent; Formerly with International Monetary Fund (IMF)

Date Written: October 1997

Abstract

This paper provides an overview of recent Chinese reforms to introduce a modern system of fiscal federalism that balances the need for central macroeconomic control with the economic advantages of decentralized government. Following a discussion of the rationale for decentralization, the paper describes the main structural and economic developments in China in this area, including their impact on economic stabilization. The key measures in the 1994 fiscal reforms as well as reform initiatives needed in the future are also discussed.

Keywords: Fiscal federalism, stabilization, China

JEL Classification: H71, H72, H77

Suggested Citation: Suggested Citation

Arora, Vivek and Norregaard, John and Norregaard, John, Intergovernmental Fiscal Relations: The Chinese System in Perspective (October 1997). IMF Working Paper No. 97/129, Available at SSRN: https://ssrn.com/abstract=882681