Regional Inequality and Financial Decentralization in Mainland China

HweiAn Tsai*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


As the mainland Chinese economy enters a new phase of rapid development, issues of unbalanced regional growth, coupled with wealth imbalances and their impacts on regional development trends, have become increasingly important. Has there been a particular dynamic in central provincial financial relationships which has imposed an uneven pattern of regional development? Can the Chinese Communist government successfully employ a fiscal transfer program and indirect monetary instruments, including greater use of market methods and financial levers, to pursue balanced growth and coordinate regional development? This study analyzes mainland China's unbalanced regional growth and its recent decentralization trends from central-provincial dynamism perspectives. The focuses are on central-provincial financial flows arising from fiscal arrangements, reforms in financial institutions, and capital markets.

Original languageEnglish
Pages (from-to)40-65
Number of pages26
JournalIssues and Studies
Issue number5
StatePublished - 1 Jan 1996


  • Central-local relations
  • Decentralization
  • Inequality
  • Policy constraints
  • Regionalization

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