Fiscal Policy In China Research Articles

The Long-run and Short-run Multipliers of Fiscal Policy in the Chinese Economy

To examine the long-run and short-run multipliers of fiscal policy in China, simple models with some basic characteristics of the Chinese economy are developed and then estimated using cointegration and error correction approaches. Empirical results confirm some similarities between the Chinese economy and well-developed market economies, but also uncover the unique features that China possesses, in terms of the multipliers of permanent and temporary changes in government spending, Okun's coefficient, and the short-run adjustment mechanism.

Pro-active fiscal policy in China since 1998: backgrounds and its emphases in practice

Fiscal policy has made indelible contribution in achieving the sustained, stable, and rapid growth of Chinese economy, especially with the gloom world economy after the slash of the Asian financial and economic turmoil. This paper gives an insight into the external and internal factors that brought about the pro-active fiscal policy in China, and another integral part of this paper is on the emphases measures of the policy and how did they play function. As the points of view in this paper, actually the pro-active fiscal policy is consisted of a set of expansionary fiscal measures, but with the outstanding characteristic of combining short-term adjusting with the medium and long-term restructuring and reform for development.

Book Reviews

Journal Article Book Reviews Get access Fiscal Policy in China: Taxation and Intergovernmental Fiscal Relations, by Roy BahlSan Francisco: The 1990 Institute, 1999, 236 pp., £39.50 cloth. Shawn Shieh Shawn Shieh Marist College Search for other works by this author on: Oxford Academic Google Scholar Publius: The Journal of Federalism, Volume 30, Issue 2, Spring 2000, Pages 113–115, https://doi.org/10.1093/oxfordjournals.pubjof.a030078 Published: 01 January 2000

Fiscal Policy in China: Taxation and Intergovernmental Fiscal Relations

In Taxation Reform in China, Roy Bahl dissects and analyzes China's 1994 tax reform as a case study of a major developing country attempting to modernize its fiscal system. Starting with an examination o the fundamental question of whether Chinese taxes are too low, it goes on to analyze the reform of the country's tax structure, ax administration, central-provincial fiscal relations, and provincial-local fiscal relations. The concluding chapter looks to the next steps in tax reform. Throughout, the book features a large amount of quantitative analysis and draws parallels with the reform options followed in other economies.The 1994 reform is noteworthy because it was the most systematic and comprehensive restructuring of China's revenue system since the start of economic reform in 1979. Besides adapting the tax structure and tax administration to the needs of rapidly rising market economy, the major thrust of the reform was to redefine the intergovernmental fiscal relations in the country. Bahl points out that, although the reform clearly thrust the nation's fiscal system toward centralization, at the same time it put in place the structure necessary to pursue a true fiscal decentralization in the future.Bahl's extensive experience advising developing countries on tax reform has led to a book of great breadth and depth. It I will be of interest to students of economic development, comparative fiscal systems or of the Chinese economy.