Despite the 30 years of reform and opening up that has led to China's rapid economic development, the gap of basic public services, such as basic education and medicine, among regions in China widened, which forced the Chinese government to put forward the strategy on Equalization of Basic Public Services (BPS) in 2005. Through econometric analysis, this paper analyzes the reasons why the regional equalization level of BPS in China has been decreasing. We find that the level of regional gaps of economic development, differences in fiscal decent...
