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The Province-Managing-County Reform and the Further Popularized Decentralization: The Macro-Level Non-Zero-Sum Game and the Micro-Level Zero-Sum Game

Lee Jaeyoung 1

1서울대학교국제대학원

Accredited

ABSTRACT

This article analyzes the province-managing-county reform in China during the 2000s. The article argues that the operational effects of decentralization have been considerably and significantly enhanced. While the 1994 Tax Sharing System contributed to the institutionalized relations between the center and the provinces, it, however, failed to address issues of subprovincial fiscal system and fiscal relations between the municipalities and the counties. As a result, the institutionalized relations between the center and the provinces caused the macro-level non-zero-sum game, while the uninstitutionalized relations between the municipalities and the counties resulted in the micro-level zero-sum game. Theoretically, this study contends that both the macro-level non-zero-sum game and the micro-level zero-sum game bring about the further popularization of norms of the decentralization during the process of implementation, and lead to various optimal strategies by the provincial, prefecture-level, county governments.

Citation status

* References for papers published after 2022 are currently being built.