A number of studies have tried to associate healthcare with fiscal decentralization (Asfaw, Frohberg, James, & Jutting, 2007; Cantarero & Pascual, 2008; Duret, 1999; Uchimura & Jutting, 2007). Within the healthcare sector, fiscal decentralization specifically refers to the decentralization of financial resources and expenditure responsibilities for healthcare from central government to subnational governments (Mills, Vaughan, Smith, & Tabibzadeh, 1990). This area of decentralization becomes an important component of policy reforms in many countries including China, Ghana, Indonesia, the Philippines, Uganda, and Zambia. Using different measures of decentralization, scholars generally find that higher fiscal decentralization leads to a lower IMR (Asfaw, Frohberg, James, & Jutting, 2007; Cantarero & Pascual, 2008; Duret, 1999; Uchimura & Jutting, 2007). However, there are few studies that have explored the impact of fiscal decentralization on the IMR in China.
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