In Search of Fiscal Interactions: A Spatial Analysis of Chinese Provincial Infrastructure Spending

Using a dataset for 31 Chinese provinces from 1998 to 2006, this paper provides a spatial Durbin panel analysis to test for fiscal interactions among China's provinces in their public spending on infrastructure. We find significant positive interactions across Chinese provincial governments. Further analysis attempting to distinguish between the possible sources of such fiscal interactions reveals evidence of expenditure competition instead of yardstick competition.

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Year of publication:	2014-12
Authors:	Zheng, Xinye ; Song, Feng ; Yu, Yihua ; Song, Shunfeng

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Zheng, Xinye and Song, Feng and Yu, Yihua and Song, Shunfeng (2014): In Search of Fiscal Interactions: A Spatial Analysis of Chinese Provincial Infrastructure Spending. Forthcoming in: Review of Development Economics
Classification:	C23 - Models with Panel Data ; H54 - Infrastructures; Other Public Investment and Capital Stock ; H7 - State and Local Government; Intergovernmental Relations
Source:	BASE

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