Fiscal decentralization boosts economic growth in China, but regional disparities persist.
The article explores how giving more financial power to local governments in China can boost economic growth, especially in the eastern region. The study looked at data from 2002 to 2006 and found that fiscal decentralization helps regions grow economically. However, when it comes to administrative decentralization, the impact on economic growth can be both positive and negative. In the eastern region, the combined effect is negative, while in the western region, it is positive.