The Impact of Fiscal Decentralization on the Budget Revenue Inequality among Municipalities and Growth of Russian

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The Impact of Fiscal Decentralization on the Budget Revenue Inequality among Municipalities and Growth of Russian

Author Info

Slinko Irina ()

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Irina Slinko

Abstract

What is the link between the fiscal decentralization, inequality among municipalities within a region, and Russian regions' welfare? Despite the conventional wisdom that fiscal decentralization is beneficial, the author suggests that the poor Russian regions do not always gain from decentralization. The author also suggests that a low initial capital endowment and long-term credit market imperfections could lead to the situation when fiscal decentralization fosters inequality within a region which, in turn, could slow down the overall regional growth. The analysis is conducted using an extensive panel dataset of Russian municipalities

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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 00-082e.

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Length: 53 pages
Date of creation: 03 Apr 2003
Date of revision:
Handle: RePEc:eer:wpalle:00-082e

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Find related papers by JEL classification:
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-12-12 (All new papers)
NEP-CIS-2004-12-12 (Confederation of Independent States)
NEP-PBE-2004-12-12 (Public Economics)
NEP-TRA-2004-12-12 (Transition Economics)

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