The Interrelationship between Formal and Informal Delcentralization and its Impact on Sub-Central Governance Performance: The Case of Vietnam
AbstractFormal and informal institutions are often viewed as complements or substitutes in empirical and theoretical works. However, no evidence of complementarities or substitutes is found in our empirical analysis of the interrelation between formal and informal decentralization across 64 provinces of Vietnam. This paper finds that the formally decentralized system of public service supply is accommodating the informal one, but informal decentralization in public order provision tends to compete with the existing ineffective formal system. This implies that the central government needs to reorganize the system of decentralizing the provision of public goods/services and public in order to make informal institutions complementary rather than rival or free-riding on formal ones.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3714.
Date of creation: 2012
Date of revision:
formal decentralization; informal decentralization; sub-central governance; accommodating; and competing;
Find related papers by JEL classification:
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
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