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How long does it take for government decentralization to affect corruption?

Author

Listed:
  • Nadia Fiorino

    (Dipartimento di Ingegneria Industriale e dell'Informazione e di Economia - UNIVAQ - Università degli Studi dell'Aquila = University of L'Aquila)

  • Emma Galli

    (Dipartimento di Scienze Sociali - UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome])

  • Fabio Padovano

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

Are countries with more decentralized fiscal and spending powers characterized by a lower level of corruption? Do changes in the degree of decentralization of such powers affect the level of corruption? If so, with which delay? This paper innovates on the previous literature, which relies mainly on cross sections of countries, by analyzing a pool of 24 countries for the time interval 1995–2007. The answer to both questions is positive and the estimated average delay is 3 years. The results appear robust to changes of the estimation techniques, of the indicators of corruption, of decentralization and of a variety of controlling factors.

Suggested Citation

  • Nadia Fiorino & Emma Galli & Fabio Padovano, 2015. "How long does it take for government decentralization to affect corruption?," Post-Print halshs-01109291, HAL.
    • Handle: RePEc:hal:journl:halshs-01109291
    DOI: 10.1007/s10101-015-0156-y
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    2. Joan Rosselló Villalonga, 2018. "Fiscal centralization: a remedy for corruption?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 9(4), pages 457-474, November.
    3. Maria Rosaria Alfano & Anna Laura Baraldi & Claudia Cantabene, 2019. "The Effect of Fiscal Decentralization on Corruption: A Non‐linear Hypothesis," German Economic Review, Verein für Socialpolitik, vol. 20(1), pages 105-128, February.
    4. Vincenzo Alfano & Salvatore Capasso & Lodovico Santoro, 2023. "Corruption and the political system: some evidence from Italian regions," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 665-695, July.
    5. El Ghoul, Sadok & Guedhami, Omrane & Wei, Zuobao & Zhu, Yicheng, 2023. "Does public corruption affect analyst forecast quality?," Journal of Banking & Finance, Elsevier, vol. 154(C).
    6. Hongkang Xu & Mai Dao & Jia Wu, 2019. "The effect of local political corruption on earnings quality," Review of Quantitative Finance and Accounting, Springer, vol. 53(2), pages 551-574, August.

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    More about this item

    Keywords

    Decentralization; evolution in time; common pool; fiscal autonomy; corruption;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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