Does fiscal decentralization really matter for public service satisfaction?

Abstract

ABSTRACT This study explores the impact of Chinese fiscal decentralization on public service satisfaction using the China Family Panel Studies (CFPS) data from 2012 to 2020. The findings reveal that fiscal decentralization has a significantly positive effect on public service satisfaction in China. This result remains robust when subjected to various tests. Moreover, this study finds that the enhancement of public service satisfaction is more pronounced in the eastern regions, compared to the central and western regions. Additionally, this study suggests that both economic pressure and corruption have a negative moderating effect on the promotion of fiscal decentralization on public service satisfaction, while marketization has a positive moderating effect. These findings provide a deeper understanding of the factors that promote public service satisfaction in China.