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Fiscal Decentralisation, Chinese Style [electronic resource]: Good for Health Outcomes? / Hiroko Uchimura and Johannes Jütting

By: Contributor(s): Material type: ArticleArticleSeries: OECD Development Centre Working Papers ; no.264.Publication details: Paris : OECD Publishing, 2007.Description: 31 p. ; 21 x 29.7cmSubject(s): Other classification:
  • I18
  • H75
  • H72
  • H51
Online resources: Abstract: This paper analyses the effect of fiscal decentralisation on health outcomes in China using a panel data set with nationwide county-level data. We find that counties in more fiscally decentralised provinces have lower infant mortality rates than counties where the provincial government remains the main spending authority, if certain conditions are met. Spending responsibilities at the local level need to be matched with county governments' own fiscal capacity. For county governments that have only limited revenues, the ability to spend on local public goods such as health care depends crucially upon intergovernmental transfers. The findings of this paper, therefore, support the common assertion that fiscal decentralisation can lead to more efficient production of local public goods, while also highlighting the conditions required for this result to be obtained.
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Working Paper Biblioteca Digital Colección OECD OECD 025220500726 (Browse shelf(Opens below)) Not For Loan
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This paper analyses the effect of fiscal decentralisation on health outcomes in China using a panel data set with nationwide county-level data. We find that counties in more fiscally decentralised provinces have lower infant mortality rates than counties where the provincial government remains the main spending authority, if certain conditions are met. Spending responsibilities at the local level need to be matched with county governments' own fiscal capacity. For county governments that have only limited revenues, the ability to spend on local public goods such as health care depends crucially upon intergovernmental transfers. The findings of this paper, therefore, support the common assertion that fiscal decentralisation can lead to more efficient production of local public goods, while also highlighting the conditions required for this result to be obtained.

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