Fiscal Decentralisation, Chinese Style Good for Health Outcomes?

This paper analyses the effect of fiscal decentralisation on health outcomes in China using a panel data set with nationwide county-level data. We find that counties in more fiscally decentralised provinces have lower infant mortality rates than counties where the provincial government remains the m...

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Main Author: Uchimura, Hiroko
Other Authors: Jütting, Johannes
Format: eBook
Language:English
Published: Paris OECD Publishing 2007
Series:OECD Development Centre Working Papers
Subjects:
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Collection: OECD Books and Papers - Collection details see MPG.ReNa
Summary:This paper analyses the effect of fiscal decentralisation on health outcomes in China using a panel data set with nationwide county-level data. We find that counties in more fiscally decentralised provinces have lower infant mortality rates than counties where the provincial government remains the main spending authority, if certain conditions are met. Spending responsibilities at the local level need to be matched with county governments' own fiscal capacity. For county governments that have only limited revenues, the ability to spend on local public goods such as health care depends crucially upon intergovernmental transfers. The findings of this paper, therefore, support the common assertion that fiscal decentralisation can lead to more efficient production of local public goods, while also highlighting the conditions required for this result to be obtained
Physical Description:31 p. 21 x 29.7cm