Understanding Governmental Spending on Public Cultural Services: Exploring the Effects of Fiscal Decentralization Variables - Theoretical Economics Letters

TEL > Vol.7 No.4, June 2017

Understanding Governmental Spending on Public Cultural Services: Exploring the Effects of Fiscal Decentralization Variables ()

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Download as PDF (Size: 319KB) PP. 709-727

DOI: 10.4236/tel.2017.74051 1,668 Downloads 3,121 Views Citations

Author(s)

Bin Tu^1*, Xiangyu Tao², Nian’en Guo²

Affiliation(s)

¹Guangdong Research Center for NPO, Guangdong University of Foreign Studies, Guangzhou, China.
²School of Politics and Public Administration, Guangdong University of Foreign Studies, Guangzhou, China.

ABSTRACT

This article explores the fiscal decentralization factors that affect government spending on public culture services in two main points—imbalance in revenue power and spending responsibility and promotion tournament by using provincial panel data from 1997 to 2015 in China. The results yield three noteworthy findings. First, fiscal decentralization in spending responsibility significantly reduced the proportion of government spending on public cultural services to government spending. The public financial self-sufficiency has a significant positive effect on the ratio of public cultural expenditure and public spending. Second, the coefficient of transfer payment is significantly negative, namely, the current transfer payment in China cannot increase the proportion of public cultural expenditure effectively. Third, the coefficient of government official promotion competition has also a significantly negative effect on public cultural spending. This research contributes to the literature in several ways, most notably by incorporating a more open-systems approach to the study of government spending on public culture services with the inclusion of several fiscal decentralization variables.

KEYWORDS

Government Spending, Public Culture Services, Fiscal Decentralization, Promotion Tournament

Share and Cite:

Tu, B. , Tao, X. and Guo, N. (2017) Understanding Governmental Spending on Public Cultural Services: Exploring the Effects of Fiscal Decentralization Variables. Theoretical Economics Letters, 7, 709-727. doi: 10.4236/tel.2017.74051.

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