This study examines the use and spending effects of land-transfer revenues in Chinese local governments. It tests the effects of such revenues on local revenue and expenditure structures using city-level budgetary data, and also the effects on the performance of public spending on economic and...

Given the vertical fiscal imbalance between the Chinese central and local governments and the overwhelming tasks imposed on local governments after the 1994 tax reform, intergovernmental fiscal transfer has become crucial for alleviating local fiscal shortages and funding local public services....

China's four-trillion-yuan stimulus package fueled by bank loans in 2009 has led to the rapid growth of shadow banking activities in China after 2012. The local governments in China financed the stimulus plan mainly through bank loans in 2009, and resorted to non-bank debt financing after 2012...