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Article
Publication date: 1 March 2007

Wilson Wong

Although the Chinese economy has experienced a strong and rapid growth due to the success of its economic reform, the Chinese central government faces a stern fiscal decline. The…

Abstract

Although the Chinese economy has experienced a strong and rapid growth due to the success of its economic reform, the Chinese central government faces a stern fiscal decline. The fiscal problem has undermined the ability of the central government in completing many crucial governing tasks. By examining the institutional root of the fiscal problem, this paper argues that the fiscal decline is part of the ironic corollary of the decentralization strategy of China’s economic reform which produces a “weak center, strong local” outcome. To fully address the problem, China should undertake major institutional reforms to redefine as well as institutionalize the fiscal roles of different levels of government.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 19 no. 1
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 2 January 2018

Xuan Jiang and Sun-hee Choi

The rise of cultural governance has made cultural democracy important in East Asia. South Korea and China have chosen to develop cultural democracy by means of developing…

Abstract

Purpose

The rise of cultural governance has made cultural democracy important in East Asia. South Korea and China have chosen to develop cultural democracy by means of developing community-based cultural houses. Cultural houses in Korea were first managed from the center but have now been decentralized, and those in China have been developed based on local financing and administration. Since central-local intergovernmental relations, as they relate to public culture, have gone untouched in East Asia, the purpose of this paper is to study how central-local intergovernmental relations have impacted the development of cultural democracy in this area, in order to better understand how public culture should be developed.

Design/methodology/approach

A comparative study of the cases of South Korea and China has been used. The materials and information collected for the study were gathered by a review and an analysis of extant literature, policy documents, data and other materials from the relevant departments of both countries. It was also based on semi-structured interviews conducted with the national cultural departments, regulatory institutions, and with officials and scholars.

Findings

This study shows that central-local intergovernmental relations can have an impact on the management of community-based cultural houses and the effectiveness of cultural democracy’s development. Only complete decentralization that directly invites democratization will provide positive local conditions for cultural democracy’s growth. In short, meaningful governmental responses to local demands and a strong civil society are critical for the advancement of cultural democracy.

Practical implications

This study seeks to provide insights into the relationship between central-local intergovernmental relations and cultural democracy. At the micro project level, cultural project management should be improved; at the medium local level, the public must be made part of any decentralization effort; and at the macro national level, the multiple impacts caused by decentralization need to be considered.

Originality/value

This study is unique in terms of both its research questions and its research area. Central-local intergovernmental relations, as they relate to public culture, have gone comparatively untouched, especially in the context of East Asia. It is in this context that studying how central-local intergovernmental relations impact the development of cultural democracy is worthwhile, in order to better understand how public culture has developed and will be developed in future. A comparative study of the cases of South Korea and China has been used to discover the impacts of different dimensions of central-local decentralization on cultural development.

Details

Asian Education and Development Studies, vol. 7 no. 1
Type: Research Article
ISSN: 2046-3162

Keywords

Article
Publication date: 16 February 2022

Wei Qian, Ping Zhu and Carol Tilt

Recent research has drawn attention to the tension between the Central and local governments in China regarding their roles in environmental protection. This paper aims to explore…

Abstract

Purpose

Recent research has drawn attention to the tension between the Central and local governments in China regarding their roles in environmental protection. This paper aims to explore this tension and examine the extent to which local/provincial government’s environmental oversight has influenced the quality of corporate environmental disclosure in China.

Design/methodology/approach

A sample of 198 listed companies in heavily polluting industries were selected to examine the relationship between their environmental disclosure quality and the respective local government’s environmental oversight level.

Findings

The results provide evidence that local/provincial government’s environmental oversight significantly influences environmental disclosure in China. Despite the coercive pressure from the powerful Central government on corporate environmental disclosure, local/provincial governments are able to buffer the pressure and adjust the intensity of their environmental oversight on companies during the implementation of central policies to retain local economic and political interests. This may partially explain the persistent issue of low environmental disclosure quality in China.

Research limitations/implications

This study enriches our understanding of the significant role of local governments in China in enhancing or sometimes discounting the regulatory enforcement of the Central government on corporate environmental disclosure, pointing to the need for concerted efforts by both local and Central governments to advance environmental disclosure development.

Originality/value

Research on environmental disclosure in developed countries has been well established in the literature. However, such research in developing nations is still limited, especially in China, the world largest developing country. The existing literature on environmental disclosure in China links it with either market demands, or regulatory enforcement from the Central government. The importance of local/provincial governments and their environmental oversight has long been ignored, which motivates this research.

Details

Pacific Accounting Review, vol. 34 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

Open Access
Article
Publication date: 15 July 2022

Stephen Gong, Liwei Shan and Li Yu

To examine whether and how the different levels of regional economic incentives would have an effect on underwriters' market share in general.

Abstract

Purpose

To examine whether and how the different levels of regional economic incentives would have an effect on underwriters' market share in general.

Design/methodology/approach

Drawing on Chinese IPO firms during the period 2006-2016, this study examines the impact of different levels of regional economic incentives on underwriters' market share.

Findings

The authors find that regional economic incentives have a positive impact on underwriters' market share and that local economic incentives have a significantly stronger impact than central economic incentives. Furthermore, the authors find that IPO firms with underwriters driven by regional economic incentives experience worse post-IPO performance than firms with underwriters driven by central economic incentives, which do not experience a significant decline in post-IPO performance.

Originality/value

Taken together, the authors’ findings are consistent with the notion that performance assessment motivates officials at various levels of government to bring companies in their jurisdiction to the IPO market prematurely. In addition, the results indicate that central economic incentives play a significant role in driving China's macroeconomic development and market-oriented system reforms. As such, they are one of the major driving forces behind China's market-oriented system reforms.

Details

China Accounting and Finance Review, vol. 24 no. 4
Type: Research Article
ISSN: 1029-807X

Keywords

Article
Publication date: 3 June 2019

Josette Caruana and Kimberly Zammit

The purpose of this paper is to analyse the relationship between control by the Maltese Central Government on Local Government and the format and basis of budgetary and financial…

Abstract

Purpose

The purpose of this paper is to analyse the relationship between control by the Maltese Central Government on Local Government and the format and basis of budgetary and financial reporting used. The study analyses the role of reporting in agency and fiscal federalism theories.

Design/methodology/approach

Semi-structured interviews were carried out with the controller (Central Government officials and the National Audit Office), while a survey was carried out with the controlled (Maltese Local Councils).

Findings

The type of reporting used by Maltese Local Councils may be undermining the control that Central Government seeks to exercise on overspending and debt levels. The Local Councils’ financial statements report accrual deficits and increasing liabilities. This overspending appears to slip through Parliamentary scrutiny because the latter approves cash allocations to Local Councils; the financial reports submitted to Parliament do not highlight overspending in cash terms; and the cash budget execution report that should be prepared by Local Councils is not given due importance.

Originality/value

Central Government should be consistent in its policy towards Local Government, which may require more elaborate reporting. This study highlights the importance of aligning the reporting required (top-down) and the reporting presented (bottom-up) – otherwise, control is at stake.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 31 no. 2
Type: Research Article
ISSN: 1096-3367

Keywords

Article
Publication date: 14 May 2018

Elona Guga

An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the…

Abstract

Purpose

An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the territorial-administrative reform of 2015-2020 in Albania and the factors that have been shaping it. The scope is to understand the impact of the reform elements on the subnational governments and in general their overall impact on the government. The purpose of this paper is to fill the gap in the existing literature for Albania and at offering some insights on the administrative-territorial reform. Furthermore, it will contribute to the current debate on fiscal decentralization in South Eastern European (SEE) countries and the public management model implemented after the last reforms.

Design/methodology/approach

The first section analyzes the historical development of local government reforms from the 1990s to today and will help to identify if there is instrumentalism advocacy. The second section explains the determinants of the local government’s fiscal autonomy in Albania of the period from 2003 to 2016. Three indicators are used as proxies for fiscal decentralization: the proportion of subnational expenditure over national expenditure, of total subnational revenues over total revenues of central government and the indicator of own subnational revenues over total revenues of the central government. The data from the budget and the revised budgets are then compared.

Findings

Despite Albania’s commitment to decentralize its government functions, there is still work to do. The territorial and administrative reform has not generated the expected results. Almost 90 percent of the revenues still come from the central government’s unconditional transfers. Therefore, the Albanian Government should build capacities and skills, and train the employees of each level of government that currently benefit from international assistance.

Research limitations/implications

The analysis represents a single case study on the territorial-administrative reform in Albania. Its implementation started in 2015 and it is probably too early to discuss outcomes. However, it might be useful to analyze the first results after a two-and-a-half-year period of implementation of reforms. Despite contributing to the existing gap in the literature, additional research will be necessary to better understand the decentralization process not only in Albania, but in all SEE countries.

Practical implications

It is necessary to first understand the lack of initial output, as well as the various challenges faced, in order to take the corrective measures on time.

Originality/value

This paper discusses in detail the reform adopted and the progress made by the Albanian local government units. The reform attempts to develop better relationships between the central and local governments and hence improve their service delivery, transparency and accountability. This paper is the first one that is attempting to analyze the initial output of the territorial-administrative reform of 2015-2020.

Details

International Journal of Public Sector Management, vol. 31 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 1 March 2006

Mengzhong Zhang

To boost the fiscal revenue, i.e., government revenue over GDP and central government revenue over government total revenue, China conducted the 1994 fiscal reforms. According to…

Abstract

To boost the fiscal revenue, i.e., government revenue over GDP and central government revenue over government total revenue, China conducted the 1994 fiscal reforms. According to some observers, the results of the initial reforms were mixed. This study reveals, contrary to most examinations of previous studies, the 1994 fiscal reforms have been an enormous success in achieving the original policy purposes, although remaining problems still present a daunting task for the Chinese government. This paper examines the factors triggering the 1994 fiscal reforms, reveals the contents and accomplishments of the reforms, explores unfinished tasks and ultimately proposes some policy implications.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 18 no. 4
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 11 October 2011

Wenxiang Sun, Jisheng Peng and Yong Huang

The purpose of this paper is to implement a comparative analysis on the evolution of technology policies of central and local governments in China and to uncover the relationship…

Abstract

Purpose

The purpose of this paper is to implement a comparative analysis on the evolution of technology policies of central and local governments in China and to uncover the relationship of technology policies.

Design/methodology/approach

A quantitative method based on policy contents from policy power, policy goals and policy instruments was developed to build a policy database and, taking Jiangsu province's policy practice as an example, was used to comparatively analyze the evolutionary process and the relationship of technology policies issued by central and local governments in China.

Findings

Comparative analysis shows that technology policies of central government are focused on the strategy of “Market in Exchange for Technology”. However, technology absorption as the critical part to realize the strategy was neglected due to the competition of interests among different agents. Local government has gradually developed a different technology development strategy to promote independent innovation on the basis of its better economic and science and technology conditions. So, the correlation coefficients of technology policies between central and local (Jiangsu) governments on policy power, policy instruments and policy goals have decreased continually.

Research limitations/implications

Because of the limitation of data and time, this paper adopted quantification criteria on the contents of policies. Also, it is necessary to explore the coordination of technology policies between central and local governments.

Practical implications

Chinese technology policies should balance administrative rights reasonably between central and local governments and promote the coordination among the central authority, ministries, commissions, local governments and enterprises.

Originality/value

This paper has made a novel quantitative and comparative analysis about the relationship of technology policies between central and local (Jiangsu) governments.

Details

Journal of Science and Technology Policy in China, vol. 2 no. 3
Type: Research Article
ISSN: 1758-552X

Keywords

Article
Publication date: 11 January 2019

Raffles Brotestes Panjaitan, Sumartono Sumartono, Sarwono Sarwono and Choirul Saleh

The purpose of this paper is to investigate forest fires and their relationship to prevention and mitigation strategies based on the empirical problems raised by this study…

Abstract

Purpose

The purpose of this paper is to investigate forest fires and their relationship to prevention and mitigation strategies based on the empirical problems raised by this study. Public policy implementation (in this case, the policy of forest fire management) is influenced by the role played by government and by the participation of the public and stakeholders (in this case, companies), as well as the effects of good governance. Thus, from the empirical problems associated with theoretical problems and normative problems, this study raises the influence of the role of central and local government on the implementation of forest fire prevention policy in Indonesia, which is moderated by the good governance variable.

Design/methodology/approach

This study used a quantitative approach by adopting survey methodology. The study has aimed to assess both large and small population groups, by selecting and reviewing carefully chosen samples of the population to find the incidence, distribution and relative interrelation of the variables considered (Kerlinger and Lee, 2000). The survey was undertaken in areas of Indonesia that have a high level of vulnerability to forest fires. There are currently six provinces – Riau, Jambi, South Sumatra, West Kalimantan, East Kalimantan and South Kalimantan – that have the highest intensity of forest fires. The study population was taken from 105 villages in those six major provinces experiencing forest fires. Sample size precision was determined by using Slovin’s formula with a precision of 10 percent and, thus, a sample size of 52 was obtained.

Findings

The central government’s activities have no significant effect on regional forest fire prevention. However, the results found that there is a significant effect caused by the interaction between the central and local governments and their governance of forest fire prevention. Even though the direct effect is not significant, the interaction effect significantly influences the forest fire prevention governance variable, which is a pure moderator. This study found that the role of central government has no effect on forest fire prevention. If the role of the central government is high, it will not impact the effectiveness of forest fire prevention, which is reflected in the aspects of prevention and early warning, reward and punishment, the improvement and management of ecosystems by reviewing courts, law enforcement and national and regional synergy.

Originality/value

This is one of the few public administration science studies to have investigated the relationship between good governance and forest fire policy in Indonesia, particularly the combined roles played by central and local governments.

Details

Benchmarking: An International Journal, vol. 26 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 4 December 2018

Hin Wah Chris Cheung, Man Yum Larry So, Chi U. Francis Choi and Chin Fung Philip Chow

The purpose of this paper is to explore the influence of Special Administrative Region (SAR) performance on the “trust” of Hong Kong and Macau people, who “live” under similar…

Abstract

Purpose

The purpose of this paper is to explore the influence of Special Administrative Region (SAR) performance on the “trust” of Hong Kong and Macau people, who “live” under similar context of “one country, two systems,” toward Beijing Central Government. The different perceptions, relating to the abovementioned issue, of the young peoples’ are also investigated. Implication for civic education in these two societies will be brought to light.

Design/methodology/approach

This study adopts secondary data analysis on the captioned topic. To further illustrate the said issue, this study reviews and analyzes data from protest campaigns in both societies.

Findings

This paper finds that the performance of Hong Kong and Macau SAR Governments has different impacts on the peoples’ “trust” toward Central Government. It may attribute to the different perceptions about the role of Central Government and levels of democratization in these societies. Civic education emphasizing the “core spirit” of “One country, two systems,” roles of SAR and Central Governments could enable young people better comprehend their relationship with Mainland China and their role as SAR–Chinese citizens.

Originality/value

This paper is an exploratory study for providing implications for further research on this topic.

Details

Asian Education and Development Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2046-3162

Keywords

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