Hao, Shi
China's abolition of the agricultural tax, local governments' respones and economic growth / Hao Shi and Bing Ye .-- , 2018
Disponible también en formato electrónico a través de la Biblioteca del IEF.
Resumen.
Bibliografía.
When evaluating agricultural policy changes, much of the attention in the literature has been limited to agricultural productivity growth. This study demonstrates that, under a regionally decentralised authority system, the effect of China’s abolition of the agricultural tax (AAT) in 2004–05 extended beyond the realm of agriculture. We find that, following the AAT reform, Chinese counties with higher reliance on agricultural taxation for budgetary revenue prior to the AAT reform experienced higher agricultural economic growth, as
expected, but lower non-agricultural economic growth in the short run. This growth-inhibiting effect of the AAT reform on non-agricultural production in the short run can be explained, to some extent, by the increased non-agricultural taxation due to the insufficient funds that Chinese county governments received
from the upper-level governments following the AAT reform; the magnitude of this tax increase was associated with the degree to which each county relied on agricultural taxation for budgetary revenue prior to the reform. In addition, our results show that the AAT reform resulted in a high level of regional inequality
in terms of non-agricultural GDP per capita. In summary, our study shows that although the AAT reform succeeded in promoting agricultural production, such accomplishments were achieved at the cost of lower non-agricultural output
growth and higher regional inequality of non-agricultural GDP per capita at the county level.
AGRICULTURA
EMPRESAS AGRARIAS
IMPUESTOS
DESARROLLO ECONOMICO
CHINA
Bing, Ye
Fiscal Studies 0143-5671 [papel] v. 39, n. 3, September 2018, p. 517-542
China's abolition of the agricultural tax, local governments' respones and economic growth / Hao Shi and Bing Ye .-- , 2018
Disponible también en formato electrónico a través de la Biblioteca del IEF.
Resumen.
Bibliografía.
When evaluating agricultural policy changes, much of the attention in the literature has been limited to agricultural productivity growth. This study demonstrates that, under a regionally decentralised authority system, the effect of China’s abolition of the agricultural tax (AAT) in 2004–05 extended beyond the realm of agriculture. We find that, following the AAT reform, Chinese counties with higher reliance on agricultural taxation for budgetary revenue prior to the AAT reform experienced higher agricultural economic growth, as
expected, but lower non-agricultural economic growth in the short run. This growth-inhibiting effect of the AAT reform on non-agricultural production in the short run can be explained, to some extent, by the increased non-agricultural taxation due to the insufficient funds that Chinese county governments received
from the upper-level governments following the AAT reform; the magnitude of this tax increase was associated with the degree to which each county relied on agricultural taxation for budgetary revenue prior to the reform. In addition, our results show that the AAT reform resulted in a high level of regional inequality
in terms of non-agricultural GDP per capita. In summary, our study shows that although the AAT reform succeeded in promoting agricultural production, such accomplishments were achieved at the cost of lower non-agricultural output
growth and higher regional inequality of non-agricultural GDP per capita at the county level.
AGRICULTURA
EMPRESAS AGRARIAS
IMPUESTOS
DESARROLLO ECONOMICO
CHINA
Bing, Ye
Fiscal Studies 0143-5671 [papel] v. 39, n. 3, September 2018, p. 517-542