IDEAS home Printed from https://ideas.repec.org/p/ays/ispwps/paper0411.html
   My bibliography  Save this paper

Ensuring Inter-regional Equity and Poverty Reduction

Author

Listed:
  • Bert Hofman
  • Susana Cordeira Guerra

Abstract

This paper reviews causes and consequences of fiscal inequities among subnational governments in East Asia. It shows that endowments and fiscal capacities among subnational entities are large, and that these inequities translate into large fiscal inequities prior to equalization. The current transfer systems in East Asian countries are only mildly equalizing, so that even after equalization the remaining fiscal disparities are still large. This paper discusses the possible consequences for service delivery inputs, outputs, and outcomes of these disparities. It concludes by some guidelines on how to make progress in increasing transparency on inequalities at the sub-national level, and how transfer systems can be made more equalizing without undermining the incentives for local governments to raise their own revenues and to spend their resources efficiently.

Suggested Citation

  • Bert Hofman & Susana Cordeira Guerra, 2004. "Ensuring Inter-regional Equity and Poverty Reduction," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0411, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:ispwps:paper0411
    as

    Download full text from publisher

    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0411.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Andrés Rodríguez-Pose & Nicholas Gill, 2004. "Is there a global link between regional disparities and devolution?," Environment and Planning A, Pion Ltd, London, vol. 36(12), pages 2097-2117, December.
    2. Zhihua Zhang & Jorge Martinez-Vazquez, 2003. "The System of Equalization Transfers in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0312, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Prud'homme, Remy, 1995. "The Dangers of Decentralization," World Bank Research Observer, World Bank Group, vol. 10(2), pages 201-220, August.
    4. Bob Searle, 2002. "Federal fiscal relations in Australia - 2001," ICER Working Papers 01-2002, ICER - International Centre for Economic Research.
    5. Arsenio Balisacan & Ernesto Pernia & Abuzar Asra, 2003. "Revisiting growth and poverty reduction in Indonesia: what do subnational data show?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 329-351.
    6. Baoyun Qiao & Jorge Martinez-Vazquez & Yongsheng Xu, 2002. "Growth and Equity Tradeoff in Decentralization Policy: China's Experience," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0216, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Ravallion, Martin, 1999. "Are poorer states worse at targeting their poor?," Economics Letters, Elsevier, vol. 65(3), pages 373-377, December.
    8. Filmer, Deon & Hammer, Jeffrey & Pritchett, Lant, 1998. "Health policy in poor countries : weak links in the chain," Policy Research Working Paper Series 1874, The World Bank.
    9. Gauri, Varun, 2004. "Social Rights and Economics: Claims to Health Care and Education in Developing Countries," World Development, Elsevier, vol. 32(3), pages 465-477, March.
    10. Jonah B. Gelbach & Lant H. Pritchett, 2000. "Indicator targeting in a political economy: Leakier can be better," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 4(2), pages 113-145.
    11. Lewis, Blane D., 2003. "Local Government Borrowing and Repayment in Indonesia: Does Fiscal Capacity Matter?," World Development, Elsevier, vol. 31(6), pages 1047-1063, June.
    12. Donald Cox & Emmanuel Jiminez, 1993. "Private Transfers And The Effectiveness Of Public Income Redistribution In The Philippines," Boston College Working Papers in Economics 236, Boston College Department of Economics.
    13. Hal Hill, 2002. "Spatial Disparities in Developing East Asia: a survey," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 16(1), pages 10-35, May.
    14. Birdsall, Nancy & James, Estelle, 1990. "Efficiency and equity in social spending : how and why governments misbehave," Policy Research Working Paper Series 274, The World Bank.
    15. Jorge Garcia Garcia & Lana Soelistianingsih, 1998. "Why Do Differences in Provincial Incomes Persist in Indonesia?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 95-120.
    16. Brodjonegoro, Bambang & Asanuma, Shinji, 2000. "Regional Autonomy and Fiscal Decentralization in Democratic Indonesia," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 41(2), pages 111-122, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martinez-Vazquez, Jorge & Timofeev, Andrey, 2008. "Regional-local dimension of Russia's fiscal equalization," Journal of Comparative Economics, Elsevier, vol. 36(1), pages 157-176, March.
    2. Era Dabla-Norris, 2005. "Issues in Intergovernmental Fiscal Relations in China," IMF Working Papers 05/30, International Monetary Fund.

    More about this item

    Keywords

    Inter-regional Equity; Poverty Reduction; fiscal inequlities;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ays:ispwps:paper0411. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Benson). General contact details of provider: http://aysps.gsu.edu/isp/index.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.