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Power to the People? The Impact of Decentralization on Governance

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Abstract

The paper analyzes the impact of decentralization on governance employing four indicators of governance and five measures of decentralization. Depending on data availability, crosssections for a maximum of 129 countries are estimated. Results for a panel of about 70 countries over the period 1984-2001 are also presented. The results show that decentralization – measured as the share of sub-national employment, revenues or, respectively, expenditures – improves governance. This is particularly true for low income countries but – depending on the indicator employed – to some extent for high income countries also. However, the number of sub-national government tiers exerts a negative impact on some dimensions of governance.

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Bibliographic Info

Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 06-121.

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Length: 35 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:kof:wpskof:06-121

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Keywords: Decentralization; Governance; Legal Quality; Judicial Independence; Federalism; Institutions;

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References

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Citations

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Cited by:
  1. Lankina, Tomila, 2008. "Cross-Cutting Literature Review on the Drivers of Local Council Accountability and Performance," MPRA Paper 12408, University Library of Munich, Germany.
  2. Stefan Voigt & Lorenz Blume, 2012. "The economic effects of federalism and decentralization—a cross-country assessment," Public Choice, Springer, vol. 151(1), pages 229-254, April.
  3. Justina AV Fischer & Antonio Rodriguez-Andrés, 2008. "Political institutions and suicide: A regional analysis of Switzerland," TWI Research Paper Series 33, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
  4. Monica Escaleras & Charles Register, 2012. "Fiscal decentralization and natural hazard risks," Public Choice, Springer, vol. 151(1), pages 165-183, April.
  5. Andreas Kyriacou & Oriol Roca sagalés, 2009. "Fiscal descentralization and the quality of government: evidence from panel data," Hacienda Pública Española, IEF, vol. 189(2), pages 131-155, June.

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