Civic Demand, Market Investment or Fiscal Capacity: Which Decides the Fiscal Expenditure on Generalized Culture Undertaking?—An Analysis of Provincial Panel Data in China: 2005-2007

摘要

Public cultural undertaking is very important to the social well-being and the integrated development of our society. By using panel data from 2005 to 2007 of provinces in China, this paper tries to figure out what are the main factors that decide fiscal expenditure on cultural undertakings of local governments. Empirical analysis shows that the disparities of cultural undertakings among provinces and between the rural and urban areas are very apparent. The main factors that caused these disparities include the limitation of fiscal capacity of local governments, the lack of investment from market and unable to respond to civic demand of cultural products.