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《Finance and Trade Research》 2008-01
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Fiscal Decentralization and Rural Road Supply——Based on Provincial Government Panel Data in China

LIU Cheng-kui1,2 WANG Chao-cai2(1.School of Economics and Management,Wuhan University,Wuhan 430072;2.Research Institute for Fiscal Science,Ministry of Finance,Beijing 100036)  
Rural road has great significance on promoting rural economic and social development.According to the theory of fiscal decentralization,local government has information advantage over local public goods supply,and increasing local government fiscal capacity will promote rural road supply.There are some key factors that affect rural road supply,such as fiscal decentralization,rural resident income,township enterprise development and democratic decision,etc.With 31 provincial government panel data from 1996 to 2005 in China,the empirical result of this paper shows that fiscal decentralization and township enterprises can positively improve rural road supply,rural resident income has weak correlation with rural road supply,and democratic decision on public goods is of no significance to rural road.
【CateGory Index】: F812.0;F542
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