XIN Binghai, ZHANG Zhichao:Does Resource Dependence Impair theGovernment Fiscal Transparency?——An Analysis Based on the Sample of 288 Cities in China

Abstract  Based on the cross-section data of 288 cities in China, this paper analyzes the relationship between resource dependence and the government fiscal transparency. Preliminary statistics confirm that on average, the city with higher degree of resource dependence has lower fiscal transparency. Further empirical analysis shows that under the condition of controlling relevant variables, resource dependence has a significant negative impact on fiscal transparency; and different quartile regression results show that the negative impact of resource dependence on cities of higher fiscal transparency is greater; and the regression result is robust. The paper concluds that resource dependence is another determinant of fiscal transparency of local governments in China, and thus supports the policy of industrial structure adjustment and industrial upgrading from a new perspective. For the area with high degree of resource dependence, it can learn from EITI experience and call local governments for improving the transparency of resource-related revenues, and reduce the rent-seeking behavior of local officials.

Key words： Resource Dependence      Government Fiscal Transparency      Extractive Industries Transparency Initiative

Source: Finance & Trade Economics , No.8, 2014