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The Relevance of the Decentralization Literature for Fiscal Policy Design

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  • Hamzah, Muhammad

    (Islamic Economics and Finance Research Group Faculty or Economics Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan Malaysia Fax: 603-8921 5760)

Abstract

The main purpose of this study research how to manage the state in an Islamic economy plays can be realized by settling the balances between private interests and social interests to maintain the economic. The research followed Caliph Era and Recent Era. Caliph era perform this obligation is through the zakah (tithe) institution, which is an inseparable part of our faith. Therefor, tax to improve and broaden the revenue base on any criteria. Therefore, recent era theoretical argument fordecentralization, disadvantages of decentralization, important conditions for successfull decentralizationfiscal decencralization which are assignment of revenues and assignment of expenditures. Therefore, design of fiscal decentralization system which is expenditures, revenues, and inter- government transfer to the discussion.

Suggested Citation

  • Hamzah, Muhammad, 2004. "The Relevance of the Decentralization Literature for Fiscal Policy Design," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 38, pages 125-139.
  • Handle: RePEc:ukm:jlekon:v:38:y:2004:i::p:125-139
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    References listed on IDEAS

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    1. Wallace E. Oates & Wallace E. Oates, 2004. "Fiscal Decentralization and Economic Development," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 21, pages 377-383, Edward Elgar Publishing.
    2. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    3. Oates, Wallace E., 1993. "Fiscal Decentralization and Economic Development," National Tax Journal, National Tax Association, vol. 46(2), pages 237-43, June.
    4. Sewell, David O, 1996. ""The Dangers of Decentralization" According to Prud'homme: Some Further Aspects," The World Bank Research Observer, World Bank, vol. 11(1), pages 143-150, February.
    5. Richard M. Bird, 2000. "Intergovernmental Fiscal Relations: Universal Principles, Local Applications," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0002, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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