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Decentralization Reforms and Regionalism in China: A review

Author

Listed:
  • X. B. Zhao

    (Department of Geography, Hong Kong Baptist University, zhaosimo@hkbu.edu.hk)

  • L. Zhang

    (Department of Geography, University of Washington, lizhang@u.washington.edu)

Abstract
Since 1978, the decentralization reforms, in general, and the reforms in planning and fiscal systems, in particular, have brought about dramatic changes in the context of central-regional/local relationships, which have in turn generated a tremendous impact on and problems for China’s regional development. This article aims to examine the impacts and consequences of China’s decentralization reform on regional development over the past seventeen years. With a brief review of prereform experiences, this article focuses on the decentralization reforms of planning and fiscal systems in the 1980s and 1990s: the contract-responsibility reforms and the ongoing tax-sharing reforms, and their regional implications and consequences. Special attention is paid to regionalism that is emerging as a result of these reforms. The authors argue that regionalism, in forms of territorial segmentation and confrontation, was planted in the traditional administrative economic system, but grew and was exacerbated by the current flawed or uncompleted decentralization reforms. The current tax-sharing system reform, which centered the functional division between the center and localities, seems to be on the right track, but its fate is hard to predict and far from claiming success.

Suggested Citation

  • X. B. Zhao & L. Zhang, 1999. "Decentralization Reforms and Regionalism in China: A review," International Regional Science Review, , vol. 22(3), pages 251-281, December.
    • Handle: RePEc:sae:inrsre:v:22:y:1999:i:3:p:251-281
    DOI: 10.1177/016001799761012424
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    Citations

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    Cited by:

    1. Tsui, Kai-yuen, 2005. "Local tax system, intergovernmental transfers and China's local fiscal disparities," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 173-196, March.
    2. Xiaobo Su, 2013. "From Frontier to Bridgehead: Cross-border Regions and the Experience of Yunnan, China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(4), pages 1213-1232, July.
    3. Pranab Bardhan & Dilip Mookherjee, 2005. "Decentralization, Corruption and Government Accountability: An Overview," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-152, Boston University - Department of Economics.
    4. Yongzheng Liu & Jorge Martinez-Vazquez & Alfred M. Wu, 2017. "Fiscal decentralization, equalization, and intra-provincial inequality in China," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(2), pages 248-281, April.
    5. Yi Zhou & Canfei He & Shengjun Zhu, 2015. "Does Creative Destruction Work for Chinese Regions? An Empirical Study on the Articulation between Firm Exit and Entry," Papers in Evolutionary Economic Geography (PEEG) 1522, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    6. Yehua Dennis Wei & Xinyue Ye, 2004. "Regional Inequality in China: A Case Study of Zhejiang Province," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(1), pages 44-60, February.
    7. Jeffrey S. Zax & Yin He, 2016. "The Law Of One Price In Chinese Factor Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-31, September.
    8. Anna Shostya, 2016. "Ambient Air Pollution in China: Predicting a Turning Point," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(3), pages 295-307, August.
    9. HE Canfei & ZHU Shengjun, 2007. "Economic Transition and Industrial Restructuring in China: Structural Convergence or Divergence?," Post-Communist Economies, Taylor & Francis Journals, vol. 19(3), pages 317-342.
    10. Canfei He & Rudai Yang, 2016. "Determinants of Firm Failure: Empirical Evidence from China," Growth and Change, Wiley Blackwell, vol. 47(1), pages 72-92, March.
    11. Wang, Yanan & Liang, Shangkun & Kong, Dongmin & Wang, Qin, 2019. "High-speed rail, small city, and cost of debt: Firm-level evidence," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).

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