Fiscal Decentralization: guilty of aggravating corruption in China?

The relationship between fiscal decentralization and corruption is highly controversial but insufficiently tested with respect to China. This article empirically tests whether fiscal decentralization aggravates corruption in China's local governments. To acquire more robust results, we employ multiple corruption and fiscal decentralization measures and collect data for 31 provinces from 1998 to 2008. Fixed effects panel models estimate the impact of fiscal decentralization on corruption after controlling for gross regional product per capita, the relative wage in the public sector compared to the private sector, political leadership changes, education levels, law enforcement and the number of NGOs. Our findings suggest that China has experienced a trend towards fiscal recentralization rather than decentralization in the 2000s. We also find the moderating effect of the level of law enforcement on corruption: fiscal decentralization in local governments with strong law enforcement deters corruption but the opposite relationship is found when their law enforcement is weak. The implication of our research is that a sound legal system and political will are prerequisites for successful fiscal decentralization.     

How Will Fiscal Policy Work in 2015?

The Central Economic Work Conference held last December decided that China will stick to a proactive fiscal policy this year and the proactive fiscal policy should be stronger.How that can be accomplished has become a focus of attention.This year will be crucial for China to comprehensively deepening its reforms.Because     

Are You in Control of Your China Operations?

Since the global financial crisis began, we have seen two new trends develop in the management of foreign enterprises in China. First,as expected,the flow of foreign direct investment     

Are You in Control of Your China Operations?

Since the global financial crisis began, we have seen two new trends develop in the management of foreign enterprises in China. First, as expected, the flow of foreign direct investment into China has decreased. Second, there has been an     

Will Tax Cuts for the Wealthy Keep Them in China?

In March,Zhang Yin,the richest Chinese mainlander in 2006 whose assets were esti- mated at 27 billion yuan ($3.4 billion) then, proposed to cut the individual income tax rate for the country's wealthy.Her reason is that China's high tax burden has spooked many rich people and tax cuts would encourage high- income professionals to stay in the country. China's individual income tax rate is currently capped at 45 percent,compared with 17 percent in Hong Kong,30 percent in Singapore and Malaysia,and 35 percent in the United States.     

Is the Divided Fiscal Seal a Symbol of Democracy?

Guiye is a small,poor village in Jinping County,in southwest China's Guizhou Province. It recently became famous across the country because of an unusual fiscal seal local villagers have ad- opted to help them share supervisory power. Every year,Guiye receives 5,000 yuan for administrative expenses and is sometimes earmarked for poverty-reduction funds. However,as the years passed,local villag- ers felt increasingly doubtful about how the     

Spread of Buddhism in China

The spread of Buddhism to China began at the beginning of the first century, when Indian Buddhism spread inland along the Silk Road to Xinjiang. Centered in Chang'an (present-day Xi'an) and Luoyang, Buddhism slowly spread across the country, eventually taking root in     

Reflection of feminism in modern China —— Reflection of feminism in modern China

The women＇s liberation movement in China started after the first opium war and it took shape with the aim of protecting the race and salvaging the country. Doubtlessly, the emergence of modern feminism opened the precedent in the theory of women＇s liberation in China and exerted a profound and far-reaching influence on women＇s liberation afterwards. But we must face up to the fact that there was some traps or misunderstanding of modern feminism, which were unfavorable for realizing women＇s rights and such influence was long, so much so that till today we are still seeing its existence. It is, therefore, necessary to have a full reflection of modem feminism, unveil the original meaning of women＇s rights and make women＇s rights return to human rights in order to make the development of women＇s fights continue.     

China Is in?the?Mind of Every Arab and Muslim

正CHINA has a strong relationship with Kuwait,characterized by continuous improvements and mutual respect.To shed more light on these relations,China Today sat down with Kuwait’s Ambassador to the People’s Republic of China Mohammed Saleh Ahmed Al-Thuwaikh.     

Patterns of Authority and Governance in Rural China: who's in charge? Why?

A ‘dual-power structure’ governs the Chinese countryside. Branch committees of the Chinese Communist Party, traditionally the centers of power in the villages, increasingly share their authority with elected villagers' committees. Seeking to illuminate the factors contributing to the division of authority between these ‘two committees’, we view Party branch secretaries and the chairs of villagers' committees as the agents of two distinct principals. Party branch secretaries tend to derive their authority from township authorities, while villagers' committee chairs derive theirs from their village electorates. We predict that the division of authority between the two committees varies with (a) the relative levels of activism exhibited by the principals; and (b) the perceived legitimacy of the agents, as determined by their method of s/election. Through analysis of a unique dataset, we test four hypotheses derived from this framework. Our findings contribute to a better understanding of the ‘exercise of power’ in rural China and shed light on the dynamics of China's political evolution.     

New Silk Road Economic Belt- Spearhead of China＇s Westward Strategy

THE new Chinese leadership＇s revitalization of China＇s foreign policies became evident during President Xi Jinping＇s recent state visits. President Xi revealed China＇s new concepts of international relations in response to an increasingly complex global environment throughout trips to four Central Asian countries from September 3 to 14 and his participation in the 2013 Shanghai Cooperation Organization summit.     

A chance in China for top brands

'Within the next ten years China may become the largest driving force for the luxury goods industry'.     

No Quickstep for Hip Hop in China

Since the hip hop seed was brought to China a couple of years ago, the plant has grown a little, but is still weak and also shows some unique Chinese Last month in Shanghai, the American rap icon Jay-Z’s debut concert in China was canceled by the Ministr…     

A chance in China for top brands

'Within the next ten years China may become the largest driving force for the luxury goods industry'.A chance in China for top brands     

Tenth China International Fair for Investment and Trade and FourthCooperation Forum for International Friendship Cities of China Held in Xiamen

The 10th China International Fair for Invest- ment and Trade (CIFIT) sponsored by the Min- istry of Commerce and organized by the Fujian Pro- vincial People’s Government and the Xiamen Mu- nicipal People’s Government was held from Septem- ber 8 to 11, 2…     

THE ESTABLISHMENT ＆EVOLUTION of Government Institutions for Ethnic Work in China

The first session of Chinese People＇s Political Consultative Conference（CPPCC） was held on Septermber 21,1949.This is a photo of the htird group of ethnic minority delegotes.     

Is China Ready for Environmental Tax?

On February 9, Zhang Lijun, Vice Minister of Environmental Protection, said that his ministry, along with the Ministry of Finance and the General Administration of Taxation,     

The Forecast for China? Don''''t Ask

I want people to visit me in Beijing. I love showing friends from home my hutong neighborhood, and I hope one day to show off to my parents the Chinese I've learned (which sounds mighty impressive, if you know nothing).     

Is China Ready for Home Schools?

<正>The new semester has begun and students have gradually returned to their schools. However, the end of the summer holiday doesn’t mean a return to school for some children. Today, a growing number of children in China are staying at home, not because they are giving up education but because their parents think they will actually receive a better education at home.     

Is China Ready for Bird Flu?

Besides a clear plan to deal with bird flu, a leading epidemic expert warns the biggest challenge is raising public awareness Premier Wen Jiabao said in his government work report, presented March 5 at the annual session of the National People's Congress, China's top legislature, that the country is attaching great attention to the prevention and control of