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An Examination of the Impacts of Fiscal Decentralization on Economic Growth

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  • Francis Amagoh
  • Aloysius Ajab Amin

Abstract

Fiscal decentralization is said to offer a number of benefits for public sector governance, including growth, accountability and responsiveness of government officials to local demands and needs. However, there has been debate about the effects of fiscal decentralization on macroeconomic performance and growth. In this paper, we examine both sides of the arguments and posit that while there are many benefits to be gained from fiscal decentralization, its impacts on economic growth is constrained by a number of factors that are based on the contexts of the societies/economies involved. Hence the positive impact of fiscal decentralization on growth depends on the context and the society/economy.

Suggested Citation

  • Francis Amagoh & Aloysius Ajab Amin, 2012. "An Examination of the Impacts of Fiscal Decentralization on Economic Growth," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 3(6), pages 72-81, November.
    • Handle: RePEc:jfr:ijba11:v:3:y:2012:i:6:p:72-81
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    3. Bojanic, Antonio N., 2018. "The impact of fiscal decentralization on growth, inflation and inequality in the Americas," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    4. Anum Ellahi, 2020. "Corruption, Tax Evasion, and Economic Development in Economies with Decentralised Tax Administrative System," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 419-438.
    5. Бухарский В. В. & Лавров А. М., 2021. "Межбюджетные Отношения И Государственное Управление: Возможности И Ограничения Децентрализации," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 2, pages 126-153.
    6. Alexander Deryigin & Irina Filippova & Igor Arlashkin, 2021. "Impact of intraregional tax decentralization on the development of the income base of the regions [Влияние Внутрирегиональной Налоговой Децентрализации На Развитие Доходной Базы Регионов]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 8-33, April.
    7. Igor Yu. Arlashkin, 2020. "Intergovernmental Fiscal Instruments for Stimulating Regional Economic Growth in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 54-68, December.
    8. Aadil Ahmad Ganaie & Sajad Ahmad Bhat & Bandi Kamaiah & N. A. Khan, 2018. "Fiscal Decentralization and Economic Growth: Evidence from Indian States," South Asian Journal of Macroeconomics and Public Finance, , vol. 7(1), pages 83-108, June.

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