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Analysis of Fiscal Descentralization in the Context of Modern Governance

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  • Bosie Irina

    () (“Alexandru Ioan Cuza”University of Iasi, Faculty of Economics and Business Administration)

Abstract

Financial decentralization aimed the central and local state structure by increasing local autonomy, leaving available to local authorities, public finances. It extended a global phenomenon and the world's developed countries have implemented the concept. Developing countries continue to seek solutions for the application of forms of decentralization. Theories on the impact of fiscal decentralization have been thoroughly discussed by Tiebout, Hayek, Musgrave, Oates. Thus, were highlighted the importance and necessity of fiscal decentralization, the allocation of financial resources to local authorities, giving them extra financial power, tipping the balance to the competition between local authorities, which can determine the size of fees and taxes, the level of public expenditure growth decision-making power. The concept of decentralization has been approached from different perspectives overtime and this article will highlight the importance of research on this branch by reviewing the literature

Suggested Citation

  • Bosie Irina, 2011. "Analysis of Fiscal Descentralization in the Context of Modern Governance," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 219-222, May.
  • Handle: RePEc:ovi:oviste:v:11:y:2011:i:1:p:219-222
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    Keywords

    decentralization; public services; efficiency;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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