Does Government-Hierarchy Reform Change the Supply of Public Education for County from Local Government?
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| Title | Does Government-Hierarchy Reform Change the Supply of Public Education for County from Local Government?
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| Author | Wang Xiaolong and Fang Jinjin |
| Organization | China Financial Policy Research Center, School of Finance, Renmin University of China |
| Email | wangxiaol@ruc.edu.cn；pingflying@hotmail.com |
| Key Words | County Directly Administrated by Province; Devolution of Powers to County; Public Education Expenditure |
| Abstract | Based on the mechanism that Government-Hierarchy Reform affects county government’s education expenditure, this paper studies the effects of two Reforms, the “County Directly Administrated by Province ”Fiscal Reform and the “Devolution of Powers to County” Reform, on county’s public education expenditure, by using county-level panel data of China’s 25 provinces and autonomous regions and employing the difference-in-differences (DID) estimation method. The conclusion indicates that only implementing the “County Directly Administrated by Province Reform” significantly increases county government’s education expenditure per capita of the pilot counties，while only implementing the “Devolution of Powers to County” Reform and implementing the two reform in the same county simultaneously both significantly decrease county government’s education expenditure per capita of these two kinds of pilot counties. Moreover, our research indicates that the ultimate effect of the “County Directly Administrated by Province” Reform on county government’s education expenditure crucially depends on the fiscal resources of the reformed province government and whether implementing the “Devolution of Powers to County” Reform simultaneously. |
| Serial Number | WP538 |
| Time | 2013-10-15 |
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