This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Fiscal Decentralization and Economic Growth

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Jorge Martinez-Vazquez () (International Studies Program. Andrew Young School of Policy Studies, Georgia State University)
Robert McNab (International Studies Program. Andrew Young School of Policy Studies, Georgia State University)

Additional information is available for the following registered author(s):

Abstract

This paper reviews the current knowledge on an issue of increasing policy interest: what impact fiscal decentralization has on economic growth. Fiscal decentralization may indeed have a direct impact on economic growth but the theoretical underpinnings for this relationship remain largely undeveloped. The absence of an adequate theoretical framework has undermined the validity of the empirical work on this subject. A fair summary of the empirical search for a direct relationship between fiscal decentralization and economic growth is that it remains an open question. Much less attention has been devoted in the literature to the indirect channels through which fiscal decentralization may affect economic growth, through the impact of fiscal decentralization on economic efficiency, the regional distribution of resources, and macroeconomic stability. This paper explorers the nature of these links and concludes with some thoughts and policy advice.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://aysps.gsu.edu/isp/files/ispwp0101.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by International Studies Program, Andrew Young School of Policy Studies, Georgia State University in its series International Studies Program Working Paper Series, at AYSPS, GSU with number paper0101.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 40 pages
Date of creation: 01 Jan 2001
Date of revision:
Handle: RePEc:ays:ispwps:paper0101

Contact details of provider:
Phone: 404-413-0235
Fax: 404-413-0244
Web page: http://aysps.gsu.edu/isp/index.html
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Paul Benson).

Related research
Keywords: Fiscal Decentralization; Economic Growth;

Other versions of this item:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Pranab Bardhan & Dilip Mookherjee, 1998. "Expenditure Decentralization and the Delivery of Public Services in Developing Countries," Boston University - Institute for Economic Development 90, Boston University, Institute for Economic Development.
  2. Gurgur, Tugrul & Shah, Anwar, 2005. "Localization and corruption : panacea or pandora's box?," Policy Research Working Paper Series 3486, The World Bank. [Downloadable!]
  3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October. [Downloadable!] (restricted)
    Other versions:
  4. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
  5. Roy Bahl, 1999. "Implementation Rules For Fiscal Decentralization," International Studies Program Working Paper Series, at AYSPS, GSU paper9901, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
    Other versions:
  6. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
  7. Shleifer, Andrei, 1997. "Government in transition," European Economic Review, Elsevier, vol. 41(3-5), pages 385-410, April. [Downloadable!] (restricted)
    Other versions:
  8. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73. [Downloadable!] (restricted)
  9. Sewell, David O, 1996. ""The Dangers of Decentralization" According to Prud'homme: Some Further Aspects," World Bank Research Observer, Oxford University Press, vol. 11(1), pages 143-50, February.
  10. Fischer, Stanley, 1993. "The role of macroeconomic factors in growth," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 485-512, December. [Downloadable!] (restricted)
    Other versions:
  11. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March. [Downloadable!] (restricted)
  12. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March. [Downloadable!] (restricted)
    Other versions:
  13. Keiko Honjo & Sanjeev Gupta & Marijn Verhoeven, 1997. "The Efficiency of Government Expenditure - Experiences from Africa," IMF Working Papers 97/153, International Monetary Fund.
  14. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, Oxford University Press, vol. 9(3), pages 477-508, September.
  15. Kirman, Alan P, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-36, Spring. [Downloadable!] (restricted)
  16. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December. [Downloadable!] (restricted)
    Other versions:
  17. Jorge Martinez-Vazquez & Robert McNab, 1997. "Fiscal Decentralization, Economic Growth, and Democratic Governance," International Studies Program Working Paper Series, at AYSPS, GSU paper9707, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  18. Rubinfeld, Daniel L., 1987. "The economics of the local public sector," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 11, pages 571-645 Elsevier. [Downloadable!] (restricted)
  19. Davoodi, Hamid & Zou, Heng-fu, 1998. "Fiscal Decentralization and Economic Growth: A Cross-Country Study," Journal of Urban Economics, Elsevier, vol. 43(2), pages 244-257, March. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Loenardo Letelier Saavedra, 2004. "Decentralising the public sector: Fiscal Decentralisation as a Mechanism to Modernise the State - Truths and Myths," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 2(1), pages 15-20, October. [Downloadable!]
  2. Jorge Martinez-Vazquez & Mark Rider, 2005. "Fiscal Decentralization and Economic Growth: A Comparative Study of China and India," International Studies Program Working Paper Series, at AYSPS, GSU paper0519, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  3. ESTEBAN, Sonia & DE FRUTOS, Pablo & PRIETO; Maria Jose, 2008. "Fiscal Decentralization And Economic Growth. Empiric Evidence From A Regional Perspective," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 8(1), pages 29-58. [Downloadable!] (restricted)
  4. Chien-Hsun Chen, 2004. "Fiscal decentralization, collusion and government size in China's transitional economy," Applied Economics Letters, Taylor and Francis Journals, vol. 11(11), pages 699-705, September. [Downloadable!] (restricted)
  5. Matthew J. Higgins & Daniel Levy & Andrew T. Young, 2008. "Federal, State, and Local Governments: Evaluating their Separate Roles in US Growth," Emory Economics 0801, Department of Economics, Emory University (Atlanta). [Downloadable!]
    Other versions:
  6. Fritz Breuss & Markus Eller, 2004. "Decentralising the public sector: Fiscal Decentralisation and Economic Growth: Is there Really a Link?," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 2(1), pages 3-9, October. [Downloadable!]
  7. Robert M McNab, 2004. "Base Realignment and Closure: Guiding Principles for Peru," Public Economics 0411001, EconWPA. [Downloadable!]
  8. Shahnawaz Malik & Mahmood-ul-Hassan & Shahzad Hussain, 2006. "Fiscal Decentralisation and Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 845-854. [Downloadable!]
  9. Jean-Paul Faguet & Fabio Sanchez, 2006. "Decentralization’S Effects On Educational Outcomes In Bolivia And Colombia," STICERD - Development Economics Papers 47, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
    Other versions:
  10. Jorge Martinez-Vazquez & Andrey Timofeev, 2008. "Fiscal Perspective of State Rescaling," International Studies Program Working Paper Series, at AYSPS, GSU paper0806, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
    Other versions:
  11. Andrés Rodríguez-Pose & Sylvia A. R. Tijmstra & Adala Bwire, 2007. "Fiscal decentralisation, efficiency, and growth," Working Papers 2007-11, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales. [Downloadable!]
    Other versions:
  12. Ramiro Gil-Serrate & Julio López-Laborda, 2004. "Modelling tax decentralisation and regional growth," ERSA conference papers ersa04p194, European Regional Science Association. [Downloadable!]
  13. Bahl, Roy & Martinez-Vazquez, Jorge, 2006. "Sequencing fiscal decentralization," Policy Research Working Paper Series 3914, The World Bank. [Downloadable!]
  14. Paul Hallwood & Ronald MacDonald, 2008. "A Review of the Empirical Evidence on the Effects of Fiscal Decentralization on Economic Efficiency: With Comments on Tax Devolution to Scotland," Working papers 2008-46, University of Connecticut, Department of Economics. [Downloadable!]
  15. Tosun, Mehmet Serkan & Yilmaz, Serdar, 2008. "Decentralization, economic development, and growth in Turkish provinces," Policy Research Working Paper Series 4725, The World Bank. [Downloadable!]
  16. Gil, Carlos & Ezcurra, Roberto & Pascual, Padro & Rapun, Manuel, 2002. "Decentralization and regional economic disparities," ERSA conference papers ersa02p306, European Regional Science Association. [Downloadable!]
  17. Phil Bodman & Kathryn Ford, . "Fiscal Decentralisation and Economic Growth in the OECD," MRG Discussion Paper Series 0706, School of Economics, University of Queensland, Australia. [Downloadable!]
  18. George Hammond & Mehmet S. Tosun, 2006. "Local Decentralization and Economic Growth: Evidence from U.S. Metropolitan and Non-Metropolitan Regions," Working Papers 06-002, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics. [Downloadable!]
Statistics
Access and download statistics

Did you know? You too can volunteer with RePEc.

This page was last updated on 2009-11-22.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.