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Government fragmentation versus fiscal decentralization and corruption

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  • Rajeev Goel

    ()

  • Michael Nelson

    ()

Abstract

This research adds to the literature on the nexus between government and corruption by examining further the influence of government decentralization on corruption. Previous research has focused primarily on fiscal decentralization. We bring additional evidence to bear for the United States by addressing whether the structure of local governments – measured both in terms of the scope of services offered and the size of the population served – has a bearing on corruption within the state. Results show that government decentralization does not necessarily reduce corruption – the type of decentralization matters. Specifically, we find that more general-purpose governments consistently contribute to corruption. In contrast, the effect of special-purpose governments on corruption is mixed. The findings uniquely flush out the tension between fiscal decentralization and fragmental local government structures in terms of impacts on corruption. Beyond this, we find that the influences of various government enforcement agencies on corruption, including police, judiciary and corrections, vary. Other corruption determinants generally support the literature. Policy implications are discussed.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s11127-010-9666-x
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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 148 (2011)
Issue (Month): 3 (September)
Pages: 471-490

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Handle: RePEc:kap:pubcho:v:148:y:2011:i:3:p:471-490

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Corruption; Fiscal decentralization; Local government fragmentation; Special-purpose government; General-purpose government; H73; H11;

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References

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Citations

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Cited by:
  1. Michael A. Nelson, 2012. "Corruption and the Size of Local Governments: Are They Related?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1210, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  2. Nadia Fiorino & Emma Galli & Fabio Padovano, 2012. "Do Fiscal Decentralization and Government Fragmentation Affect Corruption In Different Ways? Evidence from a Panel Data Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1217, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  3. Kumara, Ajantha Sisira & Handapangoda, Wasana Sampath, 2014. "Political environment a ground for public sector corruption? Evidence from a cross-country analysis," MPRA Paper 54721, University Library of Munich, Germany, revised 22 Mar 2014.
  4. James E. Alt & David Dreyer Lassen, 2010. "Enforcement and Public Corruption: Evidence from US States," EPRU Working Paper Series 2010-08, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.

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