SOCIAL DETERMINANTS OF REGIONAL REFORMS: CHINA CASE
Keywords:Interregional disparities, regional reforms, social problems, fiscal decentralization, expenditure structure, tax sharing, unemployment, migration
Introduction. One of the major problems of regional development in countries with economies in transition nowadays is the determination of the impact of market transformation policies on the region's socio-economic development. The regional policy is the basis for
the development of regional societies and subregional communities and
helps determine market transformations' main directions.
The paper research major target is to analyze the socio-economic aspects of the reforms of the regional policy and practice as
part of the macroeconomic reform and openness policy launched in
China in 1978. The analysis was carried out against the backdrop of
regional economic disparities caused by the regional policy and made an
active impact on the socio-economic development of regions and subordinate territorial units. Special emphasis was made on the impact of
local governments' preference for productive or non-productive expenditures from the perspective of tax sharing rarely presented in publications in China and overseas. The fact-finding model constructed in this
paper helps uncover the tax sharing mechanism effect on local government behaviors. The empirical analysis helps to explain the changes in
China local fiscal expenditure structure. It also provides useful insight
for policymakers on reforming tax distribution between central and
Objective. The paper provides an outcome of in-depth research
on the social side of regional reforms in China, emphasizing complicated and politically sensitive issues of interregional disparities in their
interconnection with local fiscal expenditures and governments’ behavior.
Design. The study data was collected in the course of the author's practical work on interregional cooperation between Ukraine and
Article Classification. The paper is descriptive and contains
in-depth analysis and creative features.
Practical Application. The study results can be applied in
mapping the state regional policy for improvement of the interregional
balance and living conditions of regional communities, regardless of
where people live in a fragmented, decentralized, competitive, and democratic environment.
Originality. The paper is the first effort to systematize the influence of market reforms of the policy on the region's socio-economic
Findings. Promoting coordinated regional progress in the social and welfare area is necessary to emphasize the development goals,
promote the equalization of basic public services, and adjust the budget
spending model and local authority's behavior.
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