Xue, D; Wu, F; (2015) Failing entrepreneurial governance: From economic crisis to fiscal crisis in the city of Dongguan, China. Cities , 43 (C) pp. 10-17. 10.1016/j.cities.2014.11.005.

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Abstract

This paper analyzes the recent fiscal crisis among villages in the city of Dongguan. The city has been an exemplar of export-oriented growth in China. Rapid economic development has been attributed to local state entrepreneurial governance based on a close relationship between the local state and enterprises. However, this development approach has led to a severe fiscal crisis, especially at the village level, due to declining rental incomes, ineffective village governance and a heavy burden of public service expenditure following the global financial crisis. This paper examines the configuration of local governance and how an economic crisis has evolved into a public finance crisis in the city. Until now the limits of entrepreneurial governance have been understood only with regard to negative social impacts. This paper reveals the limits of a developmental approach.

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