Abstract

Chinese local government has begun to vary in its local policy choices and the province of Liaoning has shown the growing variety emerging from the city governments formerly based in heavy industrial development. This study investigated the determinants of local cultural spending at the municipal1evel in Liaoning Province. Local cultural budgets have been studied well internationally, particularly with regards to political influences on expenditures. These factors appear to work differently in China due to the single party and therefore this study looked to Chinese demographic variables, education, economic variables,spending capacity, and tourism. The study seeks to answer the question of the relationship between cultural spending and these factors by examining cultural expenditures from all 14 metropolitan governments over a period often years from 2000-2010 that were gathered and analyzed using a random effects GLS regression model. Six of nine variables were significant. Among the demographic variables, the proportion of women and the number of youth were significant and negative and the number of senior citizens was positive and significant. Education and GDP were not significant. FDI was positive and significant. Local government debt was positive and significant. The tourism variables were split with foreign tourism not significant while domestic tourism was positive and significant. A discussion and conclusions follow.

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