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! ]

Does Decentralization Matter for Regional Disparities? A Cross-Country Analysis

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Roberto Ezcurra
Andrés Rodríguez-Pose

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

Abstract

This paper looks at the relationship between fiscal and political decentralization and theevolution of regional inequalities in a panel of 26 countries - 19 developed and 7 developing- for the period between 1990 and 2006. Using an instrumental variables method, it finds thatwhereas for the whole sample decentralization is completely dissociated for the evolution ofregional disparities, the results are highly contingent on the level of development, the existinglevel of territorial inequalities, and the fiscal redistributive capacity of the countries in thesample. Decentralization in high income countries has, if anything, been associated with areduction of regional inequality. In low and medium income countries, fiscal decentralizationhas been associated with a significant rise in regional disparities, which the positive effects ofpolitical decentralization have been unable to compensate. Policy preferences by subnationalgovernments for expenditure in economic affairs, education, and social protection havecontributed to this trend.

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://www.spatialeconomics.ac.uk/textonly/SERC/publications/download/sercdp0025.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0025.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:cep:sercdp:0025

Contact details of provider:
Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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

Related research
Keywords: Fiscal decentralization; political decentralization; regional disparities; territorialinequality; fiscal redistribution;

Other versions of this item:

Find related papers by JEL classification:
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

This paper has been announced in the following NEP Reports:

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. Wei, Shang-Jin & Wu, Yi, 2001. "Globalization and Inequality: Evidence from within China," CEPR Discussion Papers 3088, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Marinella Terrasi, 1999. "Convergence and divergence across Italian regions," The Annals of Regional Science, Springer, vol. 33(4), pages 491-510. [Downloadable!] (restricted)
  3. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1991-1), pages 107-182. [Downloadable!]
    Other versions:
  4. Andrés Rodríguez-Pose & Nicholas Gill, 2004. "Is there a global link between regional disparities and devolution?," Environment and Planning A, Pion Ltd, London, vol. 36(12), pages 2097-2117, December. [Downloadable!] (restricted)
  5. George Petrakos & Andres Rodríguez-Pose & Antonis Rovolis, 2003. "Growth, Integration and Regional Inequality in Europe," ERSA conference papers ersa03p46, European Regional Science Association. [Downloadable!]
  6. Kevin Morgan, 2002. "English Question: Regional Perspectives on a Fractured Nation," Regional Studies, Taylor and Francis Journals, vol. 36(7), pages 797-810, October. [Downloadable!] (restricted)
  7. Yingyi Qian & Barry R. Weingast, 1997. "Federalism as a Commitment to Preserving Market Incentives," Working Papers 97042, Stanford University, Department of Economics. [Downloadable!]
  8. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August. [Downloadable!] (restricted)
  9. Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank. [Downloadable!]
  10. 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)
  11. Ravi Kanbur & Xiaobo Zhang, 2005. "Fifty Years of Regional Inequality in China: a Journey Through Central Planning, Reform, and Openness," Review of Development Economics, Blackwell Publishing, vol. 9(1), pages 87-106, 02. [Downloadable!] (restricted)
    Other versions:
  12. Amos, Orley Jr., 1988. "Unbalanced regional growth and regional income inequality in the latter stages of development," Regional Science and Urban Economics, Elsevier, vol. 18(4), pages 549-566, November. [Downloadable!] (restricted)
  13. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April. [Downloadable!] (restricted)
    Other versions:
  14. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July. [Downloadable!] (restricted)
  15. Petrakos, George & Brada, Josef C, 1989. "Metropolitan Concentration in Developing Countries," Kyklos, Blackwell Publishing, vol. 42(4), pages 557-78.
  16. Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall. [Downloadable!] (restricted)
  17. Schakel , Arjan H., 2008. "Validation of the Regional Authority Index," MPRA Paper 8972, University Library of Munich, Germany. [Downloadable!]
  18. Beramendi, Pablo, 2007. "Inequality and the Territorial Fragmentation of Solidarity," International Organization, Cambridge University Press, vol. 61(04), pages 783-820, October. [Downloadable!]
  19. Dan Stegarescu, 2005. "Public sector decentralisation: measurement concepts and recent international trends," Fiscal Studies, Institute for Fiscal Studies, vol. 26(3), pages 301-333, September.
  20. Hal HILL, 2008. "Globalization, Inequality, and Local-level Dynamics: Indonesia and the Philippines," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 42-61. [Downloadable!] (restricted)
  21. Andrés Rodríguez-Pose & Richard Sandall, 2008. "From identity to the economy: analysing the evolution of the decentralisation discourse," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 26(1), pages 54-72, February. [Downloadable!] (restricted)
  22. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages F22-F49, 02. [Downloadable!] (restricted)
    Other versions:
  23. Roberto Ezcurra & Pedro Pascual, 2007. "Spatial Disparities in Productivity in Central and Eastern Europe," Eastern European Economics, M.E. Sharpe, Inc., vol. 45(3), pages 5-32, June. [Downloadable!] (restricted)
  24. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September. [Downloadable!] (restricted)
  25. Qiao, Baoyun & Martinez-Vazquez, Jorge & Xu, Yongsheng, 2008. "The tradeoff between growth and equity in decentralization policy: China's experience," Journal of Development Economics, Elsevier, vol. 86(1), pages 112-128, April. [Downloadable!] (restricted)
  26. Puga, Diego & Venables, Anthony J, 1999. "Agglomeration and Economic Development: Import Substitution vs. Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 109(455), pages 292-311, April. [Downloadable!] (restricted)
    Other versions:
Full references

Statistics
Access and download statistics

Did you know? The most prolific authors have over 700 items listed on IDEAS.

This page was last updated on 2009-11-27.

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.