Can 'tight living' promote local government to improve the efficiency of fiscal expenditure?: Evidence from the VAT Reform in China
by Chun Wang
International Journal of Markets and Business Systems (IJMABS), Vol. 5, No. 1, 2024

Abstract: This paper analyses the comprehensive and sub-item fiscal expenditure efficiency data of 266 prefecture-level cities in China from 2006 to 2019. It uses the DID method to empirically examine the impact of fiscal pressure on local fiscal expenditure efficiency The research finds that: 1) the nationwide promotion of the pilot program of 'replacing business tax with VAT' has reduced local financial resources, increased financial pressure, and increased the efficiency of local government fiscal expenditures Still, the expenditure structure has mostly stayed the same; 2) the efficiency improvement effect of fiscal pressure in eastern regions and developed secondary industries is more significant; 3) these findings are crucial to revealing the impact of China's 'pressure-type' fiscal incentives on fiscal expenditure efficiency and even local government behaviour.

Online publication date: Fri, 03-May-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Markets and Business Systems (IJMABS):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com