Wu, Alfred M.Wang, Wen2015-06-092015-06-092013-03Wu, Alfred M., and Wen Wang. 2013. Determinants of expenditure decentralization: Evidence from China. World Development 46: 176-84. http://dx.doi.org/10.1016/j.worlddev.2013.02.004https://hdl.handle.net/1805/6477This study is the first attempt to examine the determinants of expenditure decentralization at sub-provincial levels in China. The Chinese central government gives detailed guidelines to local governments on public finance, but, ironically, their expenditure assignment is far from being well-regulated. Differences in fiscal decentralization on the expenditure side are enormous among local governments. Employing a panel dataset of 1995-2006, we provide empirical evidence that transfer dependency negatively affects expenditure decentralization in Chinese local governments. It suggests that intermediate governments, i.e. provincial governments, may have “grabbed” central grants for self-interests.en-USdecentralizationlocal governmentfiscal transfersChinaArticle