1Institute of Problem Solving, Lingnan University, Hong Kong, China
2Master of Art in China and Regional Studies, Lingnan University, Hong Kong, China
In the form of a literature review, this essay will discuss the definition of fiscal decentralization, analyzes the formation and root causes of "Chinese fiscal decentralization" in conjunction with the practice of contemporary China's fiscal system reform, and describes the rationality and specificity of fiscal decentralization in China. Furthermore, this research illustrates that fiscal decentralization in China has a favorable influence on market reform and the economy of local governments in terms of infrastructure and education. At the same time, the article emphasizes that, while modern China practices decentralized financial system reform, that is, Chinese style financial decentralization, Financial Decentralization under the political centralization system has shaped the characteristics of simultaneous increase of local financial autonomy and central financial control.
Fiscal decentralization; Chinese-style fiscal decentralization; Political centralization; Economic development
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