Does flattening government improve economic performance? Evidence from China

• 成果类型: Article
• 署名作者: Li, Pei; Lu, Yi; Wang, Jin
• 署名单位: Xiamen University; Xiamen University; National University of Singapore; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2016.07.002
• 发表日期: 2016
• 页码: 18-37
• 关键词: Flattening; GOVERNMENT; hierarchies; Organization structures; Province managing county

摘要

This paper examines a causal relationship between the flattening of a government hierarchy and economic performance by exploiting a panel data set on government reorganization in China from 1995 to 2012. Delayering has led to increases in revenue and inter-governmental transfers for county governments, but the associated enlarged span of control makes it difficult for upper-level governments to coordinate and monitor local ones. This has led to a reduction in county governments' total public expenditure and pro growth expenditure, as well as an increase in land corruption. Overall, the flattening of the government hierarchy has a negative effect on economic performance. (C) 2016 Elsevier B.V. All rights reserved.