Strategic Competition in Public Spending on Education in Different Chinese Regions

摘要: This short chapter contains an empirical study that, by applying the same theoretical framework as used in previous chapter, examines issue of strategic competition public spending on education among different provinces China. Our attention is whether significant exists Chinese provincial governments their expenses. The presence such interregional may arise either response to certain mechanism inter-provincial spillovers or some resource flows between provinces. Just based models literature, we derive our basic regression specification, which constitutes foundation for analysis this study. By using panel data GMM technique, can show that under a “smooth-distance-decay” assumption constructing weighting scheme relevance interaction two provinces, results provide evidence supports claim there spatial expenditure