China's 1994 tax-sharing reforms: One system, differential impact

Asian Survey

Volumn 46, Issue 2, 2006, Pages 215-237

  Loo, Becky P Y ^a   Chow, Sin Yin ^a  

^a UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

China; Fiscal management system; Fujian; Guangdong; Tax revenues; Tax sharing

Indexed keywords

GEOGRAPHICAL VARIATION; INVESTMENT; TAX REFORM; TAX SYSTEM;

ASIA; CHINA; EURASIA; FAR EAST; FUJIAN; GUANGDONG;

EID: 33646236107     PISSN: 00044687     EISSN: None     Source Type: Journal    
DOI: 10.1525/as.2006.46.2.215     Document Type: Article

References (42)

1. Jae-ho Chung, "Beijing Confronting the Provinces: The 1994 Tax-sharing System and Its Implications for Central-Local Relations in China*: China Information 9:2/3 (1995), pp. 1-23
2. see also Becky P. Y. Loo, "A Re-examination of Lardy-Donnithorne Debate in the Provincial Context of Guangdong, 1949 1992," Journal of Contempory China 7:7 (1998), pp. 61-87.
3. Ibid., all entries.
4. Richard Cullen and Hua-ling Fu, "China's Ambitious Inter-governmental Fiscal Reforms Agenda," in China's Tax Reforms Options, eds. T. Fulton, J. Y. Li, and D. Q. Xu (River Edge, N. J.: World Scientific, 1998), pp. 443-65
5. David L, Denny, "Provincial Economic Differences Diminished in the Decade of Reforms," in China's Economic Dilemmas in the 1990s: The Problems of Reforms, Modernization, and Interdependence, ed. Joint Economic Committee, U.S. Congress (Washington, D.C.: Govemment Printing Office, 1991), pp. 1862-208.
6. Peter T. Y. Cheung, "The Guangdong Advantage: Provincial Leadership and Strategy toward Resource Allocation since 1979," in Provincial Strategies of Economic Reforms in Post-Mao China, eds. P. T. Y. Cheung, J. H. Chung, and Z. M. Lin (Armonk, N. Y.: M. E. Sharpe, 1998), pp. 89-144.
7. Shu-ki Tsang and Yuk-shing Cheng, "China's Tax Reforms of 1994: Breakthrough or Copromise?" Asian Survey 34:9 (September 1994), pp. 769-88.
8. Becky P. Y. Loo, "Export Expansion in the People's Republic of China since 1978: A Case Study of the Pearl River Delta," China Quaterly 177 (March 2004), pp. 133-54.
9. Chung, "Beijing Confronting the Provinces," pp. 1-23
10. Shuanglin Lin, "The Decline of China's Budgetary Revenue: Reasons and Consequences," Contempory Economic Policy 18:4 (October 2000), pp. 477-90
11. Le-yin Zhang, "Chinese Central-Provincial Fiscal Relationships, Budgetary Decline, and the Impact of the 1994 Fiscal Reforms: An Evaluation," China Quarterly 157(March 1999), pp. 115-41.
12. See Cullen and Fu, "China's Ambitious Inter-governmental Fiscal Reforms Agenda," pp. 443-65
13. as well as Zhiyong Lan, "Implications of Tax Sharing Reforms for China's Public Administration," in China's Tax Reforms Options, pp. 428-42.
14. Tsang and Cheng, "China's Tax Reform of 1994," pp. 769-88.
15. Christine P. W. Wong, "Central-Local Relations in an Era of Fiscal Decline: The Paradox of Fiscal Decentralization in Post-Mao China," China Quarterly 128 (December 1991), pp. 691-715
16. Zhang, "Chinese Central-Provincial Fiscal Relationships," pp. 115-41.
17. Zhang, "Chinese Central-Provincial Fiscal Relationships," p. 121.
18. X. B. Zhao and L. Zhang, "Decentralization Reforms and Regionalism in China: A Review," International Regional Science Review 22: 3 (December 1999), pp. 251-81
19. Zhang, "Chinese Central-Provincial Fiscal Ralationships," pp. 115-41.
20. Lin, "The Decline of China's Budgetary Revenue," pp. 477-90.
21. Linda Chelan Li, "Provincial Discretion and National Power: Investment Policy in Guangdong and Shanghai, 1978 93," China Quarterly 152 (December 1997), pp. 778-804.
22. Throughout this paper, the exchange rate of the year was used in the conversion. For 1992, the exchange rate of renminbi to U.S. dollars was about 0.18 (rounded up to two decimal places). In 2000, the exchange rate was about 0.12.
23. Loo, "A Re-examination of the Lardy-Donnithorne Dabate," pp. 61-87.
24. Zhongguo caizheng nianjian bianji weiyuanhui [Editorial Board of China Financial Yearbook], China Financial Yearbook [Beijing: Zhongguo caizheng zazhishe, 2000).
25. Cheung, "The Guangdong Advantage," p. 116.
26. This is because the central goverment reserved the right to rebate a larger or smaller amount of the shared tax to the provincial government under the 1994 tax-sharing system. Moreover, the timing and ways of transferring the shared tax to the provincial government would have to be jointly determined with the central government.
27. Tsang and Chung, "China's Tax Reform of 1994," pp. 769-88.
28. Zhao and Zhang, "Decentralization Reforms and Regionalism in China," pp. 251-81.
29. Zhongguo jinrong xuehui [China Society of Finance], Zhongguo Jinrong Nianjian 2002 [Almanac of China's finance and banking 2002] [Beijing: Zhongguo jinrong nianjian bianjibu, 2002), p. 500.
30. China Taxation Yearbook (2001), pp. 862, 864.
31. Chung, "Beijing Confronting the Provinces," p. 16.
32. China Taxation Yearbook (1996), pp. 919, 921-22, 93
33. ibid. (2001), pp. 854, 862-64.
34. Local Finance Statistics (1996 and 2001).
35. Lukang Mai and Yiqing Huang, Zhongguo zhengfu yusuan ruogan wenti yanjiu [Study of China's budgetary system] (Beijing: Zhongguo jinrong chubanshe, 1998), p. 314.
36. Zhang, "Chinese Central-Provincial Fiscal Relationships," pp. 115-41.
37. Loo, "A Re-examination of the Lardy-Donnithorne Dabate," pp. 61-87.
38. Huaicheng Xiang and Kehua Huang, Dangdai zhongguo jingji daciku caizhengjuan [Dictionary of contemporary Chinese economy: Finance] (Beijing: Zhongguo jingji chubanshe, 1993), p. 189.
39. Loo, "A Re-examination of Lardy-Donnithorne Debate," pp. 61-87.
40. Becky P. Y. Loo and Brian Hook, "Interplay of International, National, and Local Factors in Shaping Container Port Development: A Case Study of Hong Kong," Transport Reviews 22:2 (April 2002), pp. 219-45.
41. Loo, "A Re-examination of Lardy-Donnithorne Debate," pp. 61-87.
42. Beijing Review, "China Halts Illegal Use of Funds," Beijing Review 39, August 26-September 1, 1996, p. 4.