Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025)

<Previous Article In Volume
Next Article In Volume>

A Study of the Impact of Fiscal Vertical Imbalances on Manufacturing Upgrading

Authors
Hui Zou1, *
1College of Economics and Management, Nanjing Agricultural University, Nanjing, 210095, Jiangsu, China
*Corresponding author. Email: zouhui_1996@163.com
Corresponding Author
Hui Zou
Available Online 27 May 2025.
DOI
10.2991/978-94-6463-734-2_24How to use a DOI?
Keywords
Fiscal vertical imbalances; manufacturing upgrading; fiscal spending bias; tax competition
Abstract

Manufacturing is central to the development of China’s real economy, while fiscal policy serves as a key tool for macroeconomic regulation by central and local governments. Adjustments in fiscal revenues and expenditures play a critical role in driving the transformation and upgrading of the manufacturing sector. Using panel data from 30 Chinese provinces (including municipalities and autonomous regions) from 2003 to 2020, this study employs a two-way fixed-effects model to examine the impact of fiscal vertical imbalance on manufacturing upgrading. The findings reveal that fiscal vertical imbalance significantly hinders manufacturing upgrading through two mechanisms: suppressing fiscal expenditure bias, which negatively affects upgrading, and intensifying local government tax competition, which has a positive but insufficient countervailing effect. Overall, the net impact is negative. These results highlight the necessity of rebalancing financial and administrative powers between central and local governments to promote the transformation of the manufacturing sector and achieve high-quality economic development in China.

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.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
27 May 2025
ISBN
978-94-6463-734-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-734-2_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  - 2025/05/27
TI  - A Study of the Impact of Fiscal Vertical Imbalances on Manufacturing Upgrading
BT  - Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025)
PB  - Atlantis Press
SP  - 199
EP  - 217
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-734-2_24
DO  - 10.2991/978-94-6463-734-2_24
ID  - Zou2025
ER  -