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Fiscal Decentralization and Local Public Health Expenditure: Empirical Analysis Based on Different Caliber Indicators and Provincial Panel Data

Received: 4 November 2018    Accepted: 19 November 2018    Published: 21 December 2018
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Abstract

Based on the construction of different caliber fiscal decentralization and local public health expenditure index, this paper makes an empirical analysis of the influencing factors of local public health expenditure in China by using the methods of FGLS and dynamic panel GMM. It is found that different fiscal decentralization indicators have different effects on public health expenditure, and local governments have a large right of financial autonomy to effectively increase public health expenditure, and the central government's transfer payment to local governments also has a significant positive effect on local public health expenditure. In addition, the difference in the level of local economic development will result in uneven local public health expenditure, manifested in the double imbalance between the expenditure structure and the provision of public health services. Therefore, China should continue to increase the central transfer payment, reasonably divide the central and local financial authority, establish a hard restraint mechanism of local public health expenditure, clarify the expenditure responsibility boundary between the central and local governments, and implement the measures of combining central supervision and control with local financial autonomy, in order to solve the problem of the double imbalance between regional and regional expenditure of local public health expenditure and ensure the effective supply of local public health products.

Published in International Journal of Health Economics and Policy (Volume 3, Issue 3)
DOI 10.11648/j.hep.20180303.12
Page(s) 32-39
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Fiscal Decentralization, Public Health Expenditure, The Empirical Analysis, Different Caliber Indicators

References
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[4] Fatás, Antonio, and A. K. Rose. "Do Monetary Handcuffs Restrain Leviathan? Fiscal Policy in Extreme Exchange Rate Regimes." Cepr Discussion Papers 47.2692(2001): 2692.
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[19] Zhang Yan, Gong Liutang, “Tax reform, Fiscal Decentralization and China's Economic Growth”, Economics (quarterly). 2005(4), PP.75-108.
[20] Shen Kunrong, Fu Wenlin, “China's fiscal decentralization system and regional economic growth”, Management World.2005(1), PP.31-39.
[21] Qiao Baoyun, “The trade-off between growth and equality—China's fiscal decentralization policy research”, Beijing, People's Publishing House, 2002.
[22] Fu Yong and Zhang Yan, “Chinese decentralization and fiscal expenditure structure bias: the cost of competition for growth”, Management World, 2007(3), PP.4-12.
[23] Wang Wenjian, Tan Chenglin, “Regional differences in the growth effects of local government behavior and fiscal decentralization”, Management World, 2008(1), PP.9-21.
[24] Zhu Hengpeng, “Decentralization reform, fiscal incentives and restructuring of public enterprises”, World Economy, 2004(12), PP.14-24.
[25] Chen Shuo, “Tax reform, local fiscal autonomy and public goods supply”, Economics (quarterly), 2010(4), PP.1427-1446.
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Cite This Article
  • APA Style

    Xiaohua Ning. (2018). Fiscal Decentralization and Local Public Health Expenditure: Empirical Analysis Based on Different Caliber Indicators and Provincial Panel Data. International Journal of Health Economics and Policy, 3(3), 32-39. https://doi.org/10.11648/j.hep.20180303.12

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    ACS Style

    Xiaohua Ning. Fiscal Decentralization and Local Public Health Expenditure: Empirical Analysis Based on Different Caliber Indicators and Provincial Panel Data. Int. J. Health Econ. Policy 2018, 3(3), 32-39. doi: 10.11648/j.hep.20180303.12

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    AMA Style

    Xiaohua Ning. Fiscal Decentralization and Local Public Health Expenditure: Empirical Analysis Based on Different Caliber Indicators and Provincial Panel Data. Int J Health Econ Policy. 2018;3(3):32-39. doi: 10.11648/j.hep.20180303.12

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  • @article{10.11648/j.hep.20180303.12,
      author = {Xiaohua Ning},
      title = {Fiscal Decentralization and Local Public Health Expenditure: Empirical Analysis Based on Different Caliber Indicators and Provincial Panel Data},
      journal = {International Journal of Health Economics and Policy},
      volume = {3},
      number = {3},
      pages = {32-39},
      doi = {10.11648/j.hep.20180303.12},
      url = {https://doi.org/10.11648/j.hep.20180303.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20180303.12},
      abstract = {Based on the construction of different caliber fiscal decentralization and local public health expenditure index, this paper makes an empirical analysis of the influencing factors of local public health expenditure in China by using the methods of FGLS and dynamic panel GMM. It is found that different fiscal decentralization indicators have different effects on public health expenditure, and local governments have a large right of financial autonomy to effectively increase public health expenditure, and the central government's transfer payment to local governments also has a significant positive effect on local public health expenditure. In addition, the difference in the level of local economic development will result in uneven local public health expenditure, manifested in the double imbalance between the expenditure structure and the provision of public health services. Therefore, China should continue to increase the central transfer payment, reasonably divide the central and local financial authority, establish a hard restraint mechanism of local public health expenditure, clarify the expenditure responsibility boundary between the central and local governments, and implement the measures of combining central supervision and control with local financial autonomy, in order to solve the problem of the double imbalance between regional and regional expenditure of local public health expenditure and ensure the effective supply of local public health products.},
     year = {2018}
    }
    

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  • TY  - JOUR
    T1  - Fiscal Decentralization and Local Public Health Expenditure: Empirical Analysis Based on Different Caliber Indicators and Provincial Panel Data
    AU  - Xiaohua Ning
    Y1  - 2018/12/21
    PY  - 2018
    N1  - https://doi.org/10.11648/j.hep.20180303.12
    DO  - 10.11648/j.hep.20180303.12
    T2  - International Journal of Health Economics and Policy
    JF  - International Journal of Health Economics and Policy
    JO  - International Journal of Health Economics and Policy
    SP  - 32
    EP  - 39
    PB  - Science Publishing Group
    SN  - 2578-9309
    UR  - https://doi.org/10.11648/j.hep.20180303.12
    AB  - Based on the construction of different caliber fiscal decentralization and local public health expenditure index, this paper makes an empirical analysis of the influencing factors of local public health expenditure in China by using the methods of FGLS and dynamic panel GMM. It is found that different fiscal decentralization indicators have different effects on public health expenditure, and local governments have a large right of financial autonomy to effectively increase public health expenditure, and the central government's transfer payment to local governments also has a significant positive effect on local public health expenditure. In addition, the difference in the level of local economic development will result in uneven local public health expenditure, manifested in the double imbalance between the expenditure structure and the provision of public health services. Therefore, China should continue to increase the central transfer payment, reasonably divide the central and local financial authority, establish a hard restraint mechanism of local public health expenditure, clarify the expenditure responsibility boundary between the central and local governments, and implement the measures of combining central supervision and control with local financial autonomy, in order to solve the problem of the double imbalance between regional and regional expenditure of local public health expenditure and ensure the effective supply of local public health products.
    VL  - 3
    IS  - 3
    ER  - 

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Author Information
  • Institute of Finance and Economics, Central University of Finance and Economics, Beijing, China

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