No Cover Image

Journal article 296 views 30 downloads

The dynamics of redistribution, inequality and growth across China’s regions

Xiaoliang Yang, Lucy Barros Orcid Logo, Kent Matthews, David Meenagh

Journal of Policy Modeling, Volume: 46, Issue: 3, Pages: 613 - 637

Swansea University Author: Lucy Barros Orcid Logo

  • 65544.VoR.pdf

    PDF | Version of Record

    © 2024 The Author(s). This is an open access article under the CC BY license.

    Download (4.14MB)

Check full text

DOI (Published version): 10.1016/j.jpolmod.2024.01.011

Abstract

China’s experience has triggered debate over a trade-off between aggregate growth and regional equity. We develop a three-region model of China where local government decisions are driven by central government tax transfer instruments. These affect local TFP dynamics and regional inequality. We find...

Full description

Published in: Journal of Policy Modeling
ISSN: 0161-8938
Published: Elsevier BV 2024
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa65544
Tags: Add Tag
No Tags, Be the first to tag this record!
first_indexed 2024-01-30T21:57:26Z
last_indexed 2024-01-30T21:57:26Z
id cronfa65544
recordtype SURis
fullrecord <?xml version="1.0" encoding="utf-8"?><rfc1807 xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"><bib-version>v2</bib-version><id>65544</id><entry>2024-01-30</entry><title>The dynamics of redistribution, inequality and growth across China’s regions</title><swanseaauthors><author><sid>17877dc7759b0b75dc595a574bcc9b49</sid><ORCID>0000-0002-8421-107X</ORCID><firstname>Lucy</firstname><surname>Barros</surname><name>Lucy Barros</name><active>true</active><ethesisStudent>false</ethesisStudent></author></swanseaauthors><date>2024-01-30</date><deptcode>SOSS</deptcode><abstract>China’s experience has triggered debate over a trade-off between aggregate growth and regional equity. We develop a three-region model of China where local government decisions are driven by central government tax transfer instruments. These affect local TFP dynamics and regional inequality. We find regional asymmetry in how transfers are awarded. Transfer policies pursued since the 1994 tax-sharing reform prevented a 15% rise in regional inequality, at an 8% cost to aggregate GDP. Temporarily reducing local government non-tax fees on private firms in poorer regions lowers regional inequality permanently at no aggregate growth cost, as would imposing uniformity in central transfer rules.</abstract><type>Journal Article</type><journal>Journal of Policy Modeling</journal><volume>46</volume><journalNumber>3</journalNumber><paginationStart>613</paginationStart><paginationEnd>637</paginationEnd><publisher>Elsevier BV</publisher><placeOfPublication/><isbnPrint/><isbnElectronic/><issnPrint>0161-8938</issnPrint><issnElectronic/><keywords>Regional inequality; China; Fiscal decentralization; Redistribution; Local Government; Growth</keywords><publishedDay>1</publishedDay><publishedMonth>5</publishedMonth><publishedYear>2024</publishedYear><publishedDate>2024-05-01</publishedDate><doi>10.1016/j.jpolmod.2024.01.011</doi><url/><notes/><college>COLLEGE NANME</college><department>Social Sciences School</department><CollegeCode>COLLEGE CODE</CollegeCode><DepartmentCode>SOSS</DepartmentCode><institution>Swansea University</institution><apcterm>SU Library paid the OA fee (TA Institutional Deal)</apcterm><funders>This research is supported by the ESRC-Newton Grant ES/P004199/1, NSFC #71661137005 and the Fundamental Research Funds for the Central Universities, ZUEL#2722022BQ017.</funders><projectreference/><lastEdited>2024-06-07T12:10:28.5056198</lastEdited><Created>2024-01-30T21:28:09.4378452</Created><path><level id="1">Faculty of Humanities and Social Sciences</level><level id="2">School of Social Sciences - Economics</level></path><authors><author><firstname>Xiaoliang</firstname><surname>Yang</surname><order>1</order></author><author><firstname>Lucy</firstname><surname>Barros</surname><orcid>0000-0002-8421-107X</orcid><order>2</order></author><author><firstname>Kent</firstname><surname>Matthews</surname><order>3</order></author><author><firstname>David</firstname><surname>Meenagh</surname><order>4</order></author></authors><documents><document><filename>65544__30566__3ce0eac362d4444ab5be3e33219b1e5b.pdf</filename><originalFilename>65544.VoR.pdf</originalFilename><uploaded>2024-06-07T12:07:56.2894333</uploaded><type>Output</type><contentLength>4342235</contentLength><contentType>application/pdf</contentType><version>Version of Record</version><cronfaStatus>true</cronfaStatus><documentNotes>© 2024 The Author(s). This is an open access article under the CC BY license.</documentNotes><copyrightCorrect>true</copyrightCorrect><language>eng</language><licence>http://creativecommons.org/licenses/by/4.0/</licence></document></documents><OutputDurs/></rfc1807>
spelling v2 65544 2024-01-30 The dynamics of redistribution, inequality and growth across China’s regions 17877dc7759b0b75dc595a574bcc9b49 0000-0002-8421-107X Lucy Barros Lucy Barros true false 2024-01-30 SOSS China’s experience has triggered debate over a trade-off between aggregate growth and regional equity. We develop a three-region model of China where local government decisions are driven by central government tax transfer instruments. These affect local TFP dynamics and regional inequality. We find regional asymmetry in how transfers are awarded. Transfer policies pursued since the 1994 tax-sharing reform prevented a 15% rise in regional inequality, at an 8% cost to aggregate GDP. Temporarily reducing local government non-tax fees on private firms in poorer regions lowers regional inequality permanently at no aggregate growth cost, as would imposing uniformity in central transfer rules. Journal Article Journal of Policy Modeling 46 3 613 637 Elsevier BV 0161-8938 Regional inequality; China; Fiscal decentralization; Redistribution; Local Government; Growth 1 5 2024 2024-05-01 10.1016/j.jpolmod.2024.01.011 COLLEGE NANME Social Sciences School COLLEGE CODE SOSS Swansea University SU Library paid the OA fee (TA Institutional Deal) This research is supported by the ESRC-Newton Grant ES/P004199/1, NSFC #71661137005 and the Fundamental Research Funds for the Central Universities, ZUEL#2722022BQ017. 2024-06-07T12:10:28.5056198 2024-01-30T21:28:09.4378452 Faculty of Humanities and Social Sciences School of Social Sciences - Economics Xiaoliang Yang 1 Lucy Barros 0000-0002-8421-107X 2 Kent Matthews 3 David Meenagh 4 65544__30566__3ce0eac362d4444ab5be3e33219b1e5b.pdf 65544.VoR.pdf 2024-06-07T12:07:56.2894333 Output 4342235 application/pdf Version of Record true © 2024 The Author(s). This is an open access article under the CC BY license. true eng http://creativecommons.org/licenses/by/4.0/
title The dynamics of redistribution, inequality and growth across China’s regions
spellingShingle The dynamics of redistribution, inequality and growth across China’s regions
Lucy Barros
title_short The dynamics of redistribution, inequality and growth across China’s regions
title_full The dynamics of redistribution, inequality and growth across China’s regions
title_fullStr The dynamics of redistribution, inequality and growth across China’s regions
title_full_unstemmed The dynamics of redistribution, inequality and growth across China’s regions
title_sort The dynamics of redistribution, inequality and growth across China’s regions
author_id_str_mv 17877dc7759b0b75dc595a574bcc9b49
author_id_fullname_str_mv 17877dc7759b0b75dc595a574bcc9b49_***_Lucy Barros
author Lucy Barros
author2 Xiaoliang Yang
Lucy Barros
Kent Matthews
David Meenagh
format Journal article
container_title Journal of Policy Modeling
container_volume 46
container_issue 3
container_start_page 613
publishDate 2024
institution Swansea University
issn 0161-8938
doi_str_mv 10.1016/j.jpolmod.2024.01.011
publisher Elsevier BV
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str School of Social Sciences - Economics{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Social Sciences - Economics
document_store_str 1
active_str 0
description China’s experience has triggered debate over a trade-off between aggregate growth and regional equity. We develop a three-region model of China where local government decisions are driven by central government tax transfer instruments. These affect local TFP dynamics and regional inequality. We find regional asymmetry in how transfers are awarded. Transfer policies pursued since the 1994 tax-sharing reform prevented a 15% rise in regional inequality, at an 8% cost to aggregate GDP. Temporarily reducing local government non-tax fees on private firms in poorer regions lowers regional inequality permanently at no aggregate growth cost, as would imposing uniformity in central transfer rules.
published_date 2024-05-01T12:10:27Z
_version_ 1801200470641868800
score 11.035349

Similar Items