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Decentralization and regional economic disparities

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  • Gil, Carlos

    ()

  • Ezcurra, Roberto
  • Pascual, Padro

    ()

  • Rapun, Manuel

    ()

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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Bibliographic Info

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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  1. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, Elsevier, vol. 31(9), pages 1597-1616, September.
  2. Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198233831, October.
  3. 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.
  4. Tao Zhang & Heng-fu Zou, 2001. "Fiscal decentralization, public spending, and economic growth in China," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 58, China Economics and Management Academy, Central University of Finance and Economics.
  5. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 37(3), pages 1120-1149, September.
  6. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521027922.
  7. Tsui, Kai-yuen, 1996. "Economic reform and interprovincial inequalities in China," Journal of Development Economics, Elsevier, Elsevier, vol. 50(2), pages 353-368, August.
  8. Fisman, Raymond & Gatti, Roberta, 2002. "Decentralization and corruption: evidence across countries," Journal of Public Economics, Elsevier, Elsevier, vol. 83(3), pages 325-345, March.
  9. Gary Woller & Kerk Phillips, 1998. "Fiscal decentralisation and IDC economic growth: An empirical investigation," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(4), pages 139-148.
  10. Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series, The World Bank 609, The World Bank.
  11. Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, American Economic Association, vol. 75(4), pages 748-57, September.
  12. Freinkman, Lev & Yossifov, Plamen, 1999. "Decentralization in regional fiscal systems in Russia - trends and links to economic performance," Policy Research Working Paper Series, The World Bank 2100, The World Bank.
  13. Cukierman, Alex & Webb, Steven B & Neyapti, Bilin, 1992. "Measuring the Independence of Central Banks and Its Effect on Policy Outcomes," World Bank Economic Review, World Bank Group, World Bank Group, vol. 6(3), pages 353-98, September.
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Blog mentions

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  1. Elementos para una reforma municipal en España (I): la financiación
    by Jorge Galindo in Politikon on 2013-04-24 06:55:35
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Cited by:
  1. Jaime Bonet, 2004. "Descentralización fiscal y disparidades en el ingreso regional: la experiencia colombiana," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL 002282, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  2. Joaquín Mauricio Zuleta Arango & Lisandro López Marín & Daniel Sánchez García, 2010. "Descentralización Y Disparidades Económicas Territoriales En Colombia (1990-2005)," Observatorio de la Economía Latinoamericana, Grupo Eumed.net (Universidad de Málaga), Grupo Eumed.net (Universidad de Málaga), issue 130, April.
  3. Darius Tirtosuharto, 2010. "The Impact Of Fiscal Decentralization And State Allocative Efficiency On Regional Growth In Indonesia," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 287-307.
  4. Juan David Barón Rivera & Adolfo Meisel Roca, 2003. "La descentralización y las disparidades económicas regionales en Colombia en la década de 1990," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL 002975, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.

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