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

Xiaohua Ning

doi:doi:10.11648/j.hep.20180303.12

| Peer-Reviewed

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

Xiaohua Ning

Published in International Journal of Health Economics and Policy (Volume 3, Issue 3)

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

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

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
Creative Commons	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), 2018. Published by Science Publishing Group

Keywords

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

References

[1]	Chen Gong, Wang Jun, “Finance and public health”, Beijing: Renmin University of China Press, 2007.
[2]	Ulf-G. Gerdtham and Magnus Johannesson, “Absolute Income, Relative Income, Income Inequality, and Mortality”, The Journal of Human Resources, Vol. 39, No. 1 (Winter, 2004), pp. 228-247.
[3]	Newhouse, Joseph, P.& Friedlander, Lindy, “The Relationship between Medical Resources and Measures of Health: Some Additional Evidence”, The Journal of Human Resource, Vol. 15, No. 2 (Spring, 1980), pp. 200-218.
[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.
[5]	Tanzi V，Schuknecht L, “Public Spending in the 20th Century”, Cambridge，Cambridge University Press, 2000.
[6]	Sanjay Pradhan, “Basic method of public expenditure analysis”, Beijing, China financial and economic press, 2000.
[7]	Michael Grossman, “On the Concept of Health Capital and the Demand for Health”, Journal of Political Economy, Vol. 80, No. 2 (Mar. - Apr., 1972), pp. 223-255.
[8]	Chen Gong, Wang Jun, “Finance and public health”, Beijing, Renmin University of China Press, 2007.
[9]	Lu Wei, Wang Weitong, “Study on the equalization of basic public services in China—an analysis based on the perspective of public demand and government capacity”, Financial research, 2008 (5), PP.10-18.
[10]	He Changjiang, “Empirical analysis of factors influencing government public health expenditure behavior”, Financial Science, 2011(4), PP.94-100.
[11]	Bardhan, Pranab, “Decentralization of Governance and Development”, Journal ofEconomic Perspectives, Vol.16, No.4(2002). Autumn, pp.185-205.
[12]	Fu Yong, “Fiscal decentralization, government governance and non-economic public goods supply”, Economic Research, 2010(8), PP.4-16.
[13]	Wang Yongjun, “ Fiscal equalization and reform of transfer payment system in China”, Journal of Central University of Finance and Economics, 2006(9), PP.1-5.
[14]	Wang Xiaojie, “Theory and empirical analysis of China's public health expenditure”, Beijing, Renmin University of China.
[15]	Liu Zhenghua, Lu zongyao, “Fiscal decentralization and public health expenditure: empirical evidence from China's provincial level”, China Health Economy, 2014(10), PP.58-60.
[16]	He Changjiang, “Empirical analysis of factors influencing government public health expenditure behavior”, Financial Science, 2011(4), PP.94-100.
[17]	Zhang Ronglin, Qian yu, Liu songsong, “Empirical analysis of public health expenditure behavior of local governments in China”, East China Economic Management, 2012(4), PP.131-135.
[18]	Li Qiyun, Liu xiaoyong, “Empirical study on fiscal decentralization, transfer payment and equalization of regional public health services”, Journal of Shandong University, Philosophical and Social Science Edition, 2010(5), PP.34-46.
[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.
[26]	Ebel, r.d., Yilmaz, S., “On the Measurement and Impact of Fiscal Decentralization”, World Bank Policy ResearchWorking Paper, 2002, No. 2809.
[27]	He Changjiang, “Empirical analysis of factors influencing government public health expenditure behavior”, Financial Science, 2011 (4), PP. 94-100.
[28]	Chen Shuo, Gao Lin, “Central-local Relationship: Fiscal Decentralization Measurement and Reassessment of the Mechanism of Action”. Management World, 2012 (6), PP.43-59.
[29]	Ebel, r.d., Yilmaz, S., “On the Measurement and Impact of Fiscal Decentralization”, World Bank Policy ResearchWorking Paper, 2002, No. 2809.
[30]	Zhang Yan, Gong Liutang, “Tax reform, Fiscal Decentralization and China's Economic Growth”, Economics (quarterly). 2005(4), PP.75-108.
[31]	An Yuan and Wang Jun, “Dynamic Evolution of Fiscal Decentralization and Expenditure Bias -- Analysis Based on Non-parametric Point-by-Point Estimation”, Economist, 2010(7), PP.42-50.

Cite This Article

Plain Text BibTeX RIS

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

Copy | Download

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

Copy | Download

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

Copy | Download

@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}
}

Copy | Download

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  -

Copy | Download

Author Information

Xiaohua Ning

Institute of Finance and Economics, Central University of Finance and Economics, Beijing, China

Download PDF

Sections

Plain Text BibTeX RIS

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

Copy | Download

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

Copy | Download

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

Copy | Download

@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}
}

Copy | Download

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  -

Copy | Download