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Decentralization and regional economic disparities

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Author Info
Gil, Carlos ()
Ezcurra, Roberto
Pascual, Padro ()
Rapun, Manuel ()

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Abstract

This paper analyses the impact of both fiscal and political decentralisation on regional productivity inequalities. The study of the influence of decentralisation on economic growth has received some attention in recent years, but very few studies deal with its impact on regional inequalities, both theoretically and empirically. In this paper, we analyse the relationship between different measures of regional inequalities in productivity, and several measures of political and fiscal decentralisation for a sample of 15 OECD countries. In order to control for other possible influences, we have also include in the analysis measures of public sector size and the type of party government. The results suggest a strong negative correlation between decentralisation, mainly fiscal decentralisation, and regional inequalities. Of course, much more analysis must be done before we can demonstrate such relationship. We hope that this paper will stimulate further research.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p306.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p306

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-57, September. [Downloadable!] (restricted)
  2. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank. [Downloadable!]
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  3. Jorge Martinez-Vazquez & Robert McNab, 2001. "Fiscal Decentralization and Economic Growth," International Studies Program Working Paper Series, at AYSPS, GSU paper011, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
    Other versions:
  4. Freinkman, Lev & Yossifov, Plamen, 1999. "Decentralization in regional fiscal systems in Russia - trends and links to economic performance," Policy Research Working Paper Series 2100, The World Bank. [Downloadable!]
  5. Douglas Holtz-Eakin & Amy Ellen Schwartz, 1995. "Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways," NBER Working Papers 5004, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Cukierman, Alex & Webb, Steven B & Neyapti, Bilin, 1992. "Measuring the Independence of Central Banks and Its Effect on Policy Outcomes," World Bank Economic Review, Oxford University Press, vol. 6(3), pages 353-98, September.
  7. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September. [Downloadable!] (restricted)
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  8. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September. [Downloadable!] (restricted)
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  1. Jaime Bonet, 2006. "Fiscal decentralization and regional income disparities: evidence from the Colombian experience," The Annals of Regional Science, Springer, vol. 40(3), pages 661-676, August. [Downloadable!] (restricted)
  2. Jaime Bonet, 2004. "Descentralización fiscal y disparidades en el ingreso regional: la experiencia colombiana," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 002282, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL. [Downloadable!]
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