Repository of macro models
This repository contains descriptions of macro-models which relate to papers published or forthcoming in Economic Modelling
A Multiregional Model of China
Title of Paper: A Multiregional Model of China and its Application
Author: Qingyang Gu; Kang Chen Division of Economics, Nanyang Technological University, Singapore
Vol./Issue No.: 22/6
Short description: There has been a stark disparity between
the coastal and inland provinces since China's rapid economic transformation
in 1979.
Different policy responses are therefore needed to deal with different
challenges faced by the provinces. It would be valuable for policymakers
and researchers to have a tool capable of analyzing interactions among
the provincial economies and the dynamic relationship between the centre
and local governments. The writers' multi-regional econometric model is
the first attempt to provide such a tool. The pioneering model consists
of over 1,200 equations, covering 30 Chinese provinces that are linked
by inter-regional flows of goods and services.
The model is used to study the impact of fiscal recentralization in the
1990s. The counter-factual simulation results show that when China's central
government diverted tax revenue from provincial governments, it achieved
higher budgetary revenue for the central government but at the expense
of lower overall budgetary revenue and slower economic growth.
JEL classification: C51, C53, H77, P20, R50
Keywords: Multiregional Model, Fiscal Decentralization, Intergovernmental relations, Interregional flows, China, Economic Reform
Country: China
Linkage address: Not Applicable
Disclaimer: Responsibility for the full model structures of the models in this repository rests solely with the authors.