Economics, Econometrics and Finance
3 years ago

China's local spending drives economic growth more than central expenditures.

Review of World Economics
Fiscal policy and economic growth: some evidence from China
Jungsuk Kim, Mengxi Wang, Donghyun Park, Cynthia Castillejos Petalcorin

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Fiscal policy resurgence challenges euro area fiscal rule dominance.

Fiscal Policy
3 views
Economics, Econometrics and Finance
4 years ago

Poland's Fiscal Policy Council Proposal Could Revolutionize Economic Stability

Fiscal Policy
4 views
Economics, Econometrics and Finance
4 years ago

Latin America's Fiscal Policy Shifts from Pro to Anti-Crisis Mode.

Fiscal Policy
Macroeconomic Trends
Infrastructure Impact
3 views

The study looked at how China's fiscal policy affects its economic growth. They found that local spending growth has a bigger impact on the economy than central spending growth. Changes in taxes didn't always lead to more economic growth due to money constraints. In the past, investing in manufacturing helped the economy the most, but now investing in research and development is more important. Also, having a lot of debt affects China's government income.