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Fiscal decentralization and institutional quality on the business environment

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  • Escaleras, Monica
  • Chiang, Eric P.

Abstract

Using country panel data from 2004 to 2012, we empirically analyze the effect of fiscal decentralization on the likelihood of business-friendly environments. Our results show that fiscal decentralization improves the business environment and the effect is strongest among lower-income countries.

Suggested Citation

  • Escaleras, Monica & Chiang, Eric P., 2017. "Fiscal decentralization and institutional quality on the business environment," Economics Letters, Elsevier, vol. 159(C), pages 161-163.
  • Handle: RePEc:eee:ecolet:v:159:y:2017:i:c:p:161-163
    DOI: 10.1016/j.econlet.2017.07.019
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    References listed on IDEAS

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    6. Andreas P Kyriacou & Oriol Roca-Sagalés, 2011. "Fiscal and Political Decentralization and Government Quality," Environment and Planning C, , vol. 29(2), pages 204-223, April.
    7. Russell S. Sobel & Nabamita Dutta & Sanjukta Roy, 2014. "Does fiscal decentralization result in a better business climate?," Chapters, in: Robert F. Salvino Jr. & Michael T. Tasto & Gregory M. Randolph (ed.), Entrepreneurial Action, Public Policy, and Economic Outcomes, chapter 9, pages 151-176, Edward Elgar Publishing.
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    Cited by:

    1. Feng, Suling & Sui, Bo & Liu, Huimin & Li, Guoxiang, 2020. "Environmental decentralization and innovation in China," Economic Modelling, Elsevier, vol. 93(C), pages 660-674.

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    More about this item

    Keywords

    Decentralization; Entrepreneurship; Business environment;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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