China is the world’s most populous country. For some years, China has sustained a remarkably fast rate of economic growth. Despite the forests of construction cranes so often noted by visiting foreigners, however, China remains to a surprising extent a rural country, with only about one-third...

This paper reviews the evolution and current state of subnational taxation in five large emerging countries: Brazil, Russia, India, China, and Nigeria – BRIC plus one. As these case studies show, intergovernmental fiscal relations in any country are inevitably both path-dependent and...

This paper first restates the lessons to be learned from Richard Musgrave’s pioneering discussion of the tax assignment issue. Next, it considers subsequent developments in the theory of fiscal federalism related to the issue of tax assignment. Surprisingly little clear guidance is offered by...

Using a nationwide county-level panel dataset for the years 1995-2009, this paper conducts the rst analysis in the literature to examine the impacts of scal decentralization and scal equalization, both measured at the sub-provincial level, on intra-provincial inequality in China. While scal...

In this paper, we use pooled data for central-provincial and provincial-local governments in 2000-01, overall involving over 4000 sub-provincial governments, to assess China 's sub-national fiscal equalization practices and outcomes. Our goal is to explain horizontal fiscal disparities between...

Although there are obvious differences in the political systems of China and India, there are surprising similarities in their respective approaches to decentralization. Both countries face similar design issues with their intergovernmental systems, such as the lack of clear expenditure...

Because of history, size and economic potential China is a force to reckon with: 9.6 million square kilometers populated by 1.26 billion people. China has a varied geography. Moving from west to east, Figure 1, we start with the vast dry areas in the west, move to the mountains, valleys and...