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Decentralization and macroeconomic performance

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  • David King
  • Yue Ma

Abstract

The paper examines the relationship between some key measures of macroeconomic performance and fiscal decentralization in OECD countries, and the impact on this relationship of increased policy co-ordination among countries since 1985. It is shown that prior to 1985 there was a significant relationship between decentralization and macroeconomic performance on all of these measures, with decentralized performing better. By 1996, however, the relationships had all ceased to be significant. This suggests that, as a result of harmonization, the tendency for decentralized economies to have more effective economic policies has weakened.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 7 (2000)
Issue (Month): 1 ()
Pages: 11-14

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Handle: RePEc:taf:apeclt:v:7:y:2000:i:1:p:11-14

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Cited by:
  1. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
  2. Luca Gandullia, 2012. "The role of direct taxes in fiscal decentralization," DEP - series of economic working papers 6/2012, University of Genoa, Research Doctorate in Public Economics.
  3. Skedinger, Per & Lundin, Martin, 2000. "Decentralisation of Active Labour Market Policy: The Case of Swedish Local Employment Service Committees," Working Paper Series, Research Institute of Industrial Economics 537, Research Institute of Industrial Economics.

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