Una Prima Stima del Residuo Fiscale e del suo Effetto sulla Localizzazione delle Imprese in Cina

In the present work we analyze fiscal differences among Chinese provinces using indexes built on the concept of fiscal residuum. Our analysis help us to verify the role of public transfers in promoting both fiscal equalization and competition among provinces. We further study the impact of the fiscal residua on the localization of foreign enterprises. Our first results show that enterprises are conditioned, in their localization choices, by the general welfare conditions of each jurisdiction. Our results underscore the role of local and central institutions in affecting the productive structures.