The economic (in)efficiency of devolution
AbstractThe recent devolutionary trend across the world has been in part fuelled by claims of a supposed 'economic dividend' associated with the decentralization of authority and resources. The capacity of devolved administrations with greater autonomous powers to tailor policies to local preferences, to generate innovation in the provision of policies and public services, and to encourage greater participation and be more accountable is supposed to deliver greater economic efficiency. There is, however, little empirical evidence to substantiate these claims. In this paper we assess the horizontal link between devolution and regional economic growth in six national contexts (Germany, India, Italy, Mexico, Spain, and the USA). Regression analyses are used in order to test whether changes in cross-regional differences in growth patterns within each country can be attributed to changes in levels of regional autonomy. The results suggest that, contrary to the expectations of devolutionists, the degree of devolution is in most cases irrelevant for economic growth and, when it matters -- as in the cases of Mexico and the USA -- it is linked to lower rather than greater economic efficiency.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Pion Ltd, London in its journal Environment and Planning A.
Volume (Year): 36 (2004)
Issue (Month): 11 (November)
Contact details of provider:
Web page: http://www.pion.co.uk
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ehtisham Ahmad & Giorgio Brosio & Vito Tanzi, 2008. "Local Service Provision in Selected OECD Countries: Do Decentralized Operations Work Better?," IMF Working Papers 08/67, International Monetary Fund.
- Anwar Shah & Theresa Thompson & Heng-fu Zou, 2004.
"Decentralising the public sector: The Impact of Decentralisation on Service Delivery, Corruption, Fiscal Management and Growth in Developing and Emerging Market Economies: A Synthesis of Empirical Evi,"
CEMA Working Papers
492, China Economics and Management Academy, Central University of Finance and Economics.
- Anwar Shah & Theresa Thompson & Heng-fu Zou, 2004. "Decentralising the public sector: The Impact of Decentralisation on Service Delivery, Corruption, Fiscal Management and Growth in Developing and Emerging Market Economies: A Synthesis of Empirical Evi," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 2(1), pages 10-14, October.
- Diaz-Serrano, Luis & Rodríguez-Pose, Andrés, 2011.
"Decentralization, Happiness and the Perception of Institutions,"
IZA Discussion Papers
5647, Institute for the Study of Labor (IZA).
- Diaz-Serrano, Luis & Rodríguez-Pose, Andrés, 2011. "Decentralization, Happiness, and the Perception of Institutions," CEPR Discussion Papers 8356, C.E.P.R. Discussion Papers.
- Luis Diaz-Serrano & Andrés Rodríguez-Pose, 2011. "Decentralization, happiness and the perception of institutions," Working Papers 2011-07, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Díaz Serrano, Lluís & Rodríguez Pose, Andrés, 2011. "Decentralization, happiness and the perception of institutions," Working Papers 2072/151812, Universitat Rovira i Virgili, Department of Economics.
- Serhan Cevik, 2011. "Policy Coordination in Fiscal Federalism: Drawing Lessons from the Dubai Debt Crisis," IMF Working Papers 11/147, International Monetary Fund.
- Brosio, Giorgio & Zanola, Roberto, 2008. "The welfare costs of national standards: a contribution to the debate on the outcomes of de/centralization," POLIS Working Papers 113, Institute of Public Policy and Public Choice - POLIS.
- Massimo Del Gatto, 2004. "Agglomeration, Integration, and Territorial Authority Scale in a System of Trading Cities. Centralisation versus Devolution," Working Papers 2004.93, Fondazione Eni Enrico Mattei.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond).
If references are entirely missing, you can add them using this form.