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The spatial allocation effects of central transfers: evidence from China
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DOI：10.1016/j.worlddev.2026.107490.png)
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Abstract
En 中文
• We characterize the salient features of China’s fiscal relations within a spatial general equilibrium framework. • We quantitatively analyze the aggregate effects of central government transfers transmitted through labor migration. • Central transfers reduce regional disparities, but at the expense of aggregate output and welfare. • From 2016 to 2021, China’s central transfers narrowed regional disparities and increased aggregate output, yet decreased welfare. • There are significant differences in the aggregate effects generated by different types of transfers.
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