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focuses on evaluating the effectiveness of fiscal transfers. We find that, to a certain extent, fiscal transfers significantly … promote the construction of local infrastructure. Earmarked transfers had an effect, but lump-sum transfers did not. Results … showed every 1% increase in earmarked transfers to be associated with a 5% increase in local spending on infrastructure …
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focuses on evaluating the effectiveness of fiscal transfers. We find that, to a certain extent, fiscal transfers significantly … promote the construction of local infrastructure. Earmarked transfers had an effect, but lump-sum transfers did not. Results … showed every 1% increase in earmarked transfers to be associated with a 5% increase in local spending on infrastructure …
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Local government financing vehicles (“LGFVs”) — companies capitalized and owned by local government and established for the purpose of raising funds for municipal infrastructure construction — emerged in China in the 1980s as a response to the severe constraints on indebtedness by local...
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