Advanced Search
MyIDEAS: Login to save this paper or follow this series

Fiscal Federalism in Western European and Selected Other Countries: Centralization or Decentralization? What Is Better for Economic Growth?


Author Info

  • Ulrich Thießen


Das Papier gibt zunächst einen Überblick über die theoretischen Argumente für und gegen fiskalische Dezentralisierung. Für westeuropäische Länder sowie ausgewählte weitere Länder mit mittlerem Einkommensniveau wird dann eine empirische Analyse des Zusammenhangs zwischen Indikatoren des fiskalischen Dezentralisierungsgrades und dem wirtschaftlichen Wachstum durchgeführt. Als abhängige Variable in den Regressionen wird aber nicht nur das Wirtschaftswachstum berücksichtigt, sondern auch zwei Komponenten des Wirtschaftswachstums, nämlich Kapitalbildung und Wachstum der totalen Faktorproduktivität. Die Ergebnisse sind, daß für Länder mit hohem Einkommen und westeuropäische Länder kein linearer Zusammenhang zwischen Wirtschaftswachstum und seinen Komponenten -auf der einen Seite- und fiskalischer Dezentralisierung -auf der anderen Seite- zu bestehen scheint. Vielmehr scheint dieser Zusammenhang "glockenförmig" zu sein. Dagegen gilt für die Länder mit relativ niedrigem Einkommensniveau der Stichprobe (dies sind Länder mit mittlerem Einkommensniveau nach der Klassifizierung der Weltbank), daß zunehmende fiskalische Dezentralisierung mit steigendem pro-Kopf Wirtschafswachstum und höherer Kapitalbildung verbunden ist. Following a brief review of the theoretical literature on the benefits and shortcomings of fiscal decentralization this paper presents an empirical analysis of the relationship between per capita economic growth and its production function determinants, on the one hand, and constructed indicators of fiscal decentralization, on the other hand. The analysis suggests for high income countries, in particular Western European countries, a hump-shaped relation between per capita economic growth and capital formation, on the one hand, and fiscal decentralization, on the other hand. By contrast, for countries with middle income, the association between fiscal decentralization and economic growth and its determinants (capital formation and total factor productivity growth) becomes stronger as fiscal decentralization increases.

Download Info

If 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.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 224.

as in new window
Length: 42 p.
Date of creation: 2000
Date of revision:
Handle: RePEc:diw:diwwpp:dp224

Contact details of provider:
Postal: Mohrenstraße 58, D-10117 Berlin
Phone: xx49-30-89789-0
Fax: xx49-30-89789-200
Web page:
More information through EDIRC

Related research


Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp224. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.