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Fiscal Decentralization and Economic Growth: A Nonlinear Model for Provinces of Iran

Author

Listed:
  • Ahmad Jafari Samimi

    (Professor of Economics, University of Mazandaran)

  • Saeed Karimi Petanlar

    (Assistant Professor of Economics, University of Mazandaran)

  • Gholamreza Keshavarz Haddad

    (Associated Professor of Economics, Sharif University of Technology)

  • Mohammad Alizadeh

    (Ph.D. Student of Economics, University of Mazandaran)

Abstract

Economists and policy-makers believe that the fiscal decentralization is an effective strategy to promote economic growth. This study intends to analyze the relationship between fiscal decentralization and economic growth in Iran, over the period of 2001-2007 across the 30 provinces of the country. A nonlinear fixed effect panel model is specified. The results show that fiscal decentralization has a positive effect on economic growth of Iran.

Suggested Citation

  • Ahmad Jafari Samimi & Saeed Karimi Petanlar & Gholamreza Keshavarz Haddad & Mohammad Alizadeh, 2010. "Fiscal Decentralization and Economic Growth: A Nonlinear Model for Provinces of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 15(2), pages 125-133, spring.
  • Handle: RePEc:eut:journl:v:15:y:2010:i:2:p:125
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    References listed on IDEAS

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    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    2. Fritz Breuss & Markus Eller, 2004. "Decentralising the public sector: Fiscal Decentralisation and Economic Growth: Is there Really a Link?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(1), pages 3-9, October.
    3. Fritz Breuss & Markus Eller, 2004. "Decentralising the public sector: Fiscal Decentralisation and Economic Growth: Is there Really a Link?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(01), pages 3-9, October.
    4. Akai, Nobuo & Sakata, Masayo, 2002. "Fiscal decentralization contributes to economic growth: evidence from state-level cross-section data for the United States," Journal of Urban Economics, Elsevier, vol. 52(1), pages 93-108, July.
    5. repec:ces:ifodic:v:2:y:2004:i:1:p:14567688 is not listed on IDEAS
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    Cited by:

    1. Stoilova Desislava & Patonov Nikolay, 2012. "Fiscal Decentralization: Is It a Good Choice for the Small New Member States of the EU?," Scientific Annals of Economics and Business, Sciendo, vol. 59(1), pages 125-137, July.
    2. Muhammad Shahid & Amjad Ali, 2015. "The Impact of Decentralized Economic Affairs Expenditures on Economic Growth: A Time Series Analysis of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(3), pages 136-148, September.
    3. Antonio N. Bojanic, 2018. "The Impact of Fiscal Decentralization on Accountability, Economic Freedom, and Political and Civil Liberties in the Americas," Economies, MDPI, vol. 6(1), pages 1-20, February.
    4. Eleonora Sofilda & Muhammad Zilal Hamzah, 2015. "Government Spending Contributions on per Capita Income and its Effect toward the Human Development Index (Comparative Study between Western Indonesia and Central & East Indonesia)," Journal of Social and Development Sciences, AMH International, vol. 6(3), pages 43-49.
    5. Carlos González Taranco, 2020. "Fiscal decentralization and economic growth in Peruvian regional governments, 2007 – 2018," Revista de Análisis Económico y Financiero, Universidad de San Martín de Porres, vol. 2(01), pages 25-31.
    6. Antonio N. Bojanic, 2016. "Fiscal Decentralization, Economic Freedom, and Political and Civil Liberties in the Americas," Working Papers 1609, Tulane University, Department of Economics.

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