Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)

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Fiscal Decentralization and Manufacturing Upgrading

——Explanation Based on Nonlinear Relationship

Authors
Hui Zou1, *
1Nanjing Agricultural University, No. 1 Weigang, Xuanwu District, Nanjing, China
*Corresponding author. Email: Zouhui_1996@163.com
Corresponding Author
Hui Zou
Available Online 7 June 2025.
DOI
10.2991/978-94-6463-752-6_24How to use a DOI?
Keywords
Fiscal Decentralization; Manufacturing Upgrading; Human Capital; Technological Innovation; Nonlinear Relationship
Abstract

Fiscal decentralization plays a crucial role in guiding government actions, thereby influencing the upgrading of the manufacturing industry. This study employs panel data from 30 Chinese provinces spanning the years 2004 to 2021 to investigate the impact of fiscal decentralization on manufacturing upgrading. Using a two-way fixed effects model, the paper examines the relationship between fiscal decentralization and manufacturing upgrading. The findings reveal an inverted U-shaped relationship between fiscal decentralization and manufacturing upgrading. Specifically, when the degree of fiscal decentralization exceeds 0.6283, it exerts a negative impact on manufacturing upgrading. Based on these findings, the paper proposes policy recommendations focusing on the proper alignment of central-local government relations and the enhancement of fiscal expenditure in science and education.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
7 June 2025
ISBN
978-94-6463-752-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-752-6_24How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hui Zou
PY  - 2025
DA  - 2025/06/07
TI  - Fiscal Decentralization and Manufacturing Upgrading
BT  - Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)
PB  - Atlantis Press
SP  - 227
EP  - 240
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-752-6_24
DO  - 10.2991/978-94-6463-752-6_24
ID  - Zou2025
ER  -