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Fiscal and Political Decentralization and Government Quality

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Listed:
  • Andreas P. Kyriacoua

    () (Departament d’Economia, Universitat de Girona)

  • Oriol Roca-Sagalésb

    (Departament d’Economia Aplicada, Universitat Autònoma de Barcelona)

Abstract

In this paper we apply both cross-section and panel analysis to the relationship between fiscal and political decentralization and government quality. We find that fiscal decentralization has a positive impact. Moreover, political decentralization tends to reduce the positive impact of fiscal decentralization on the quality of government. This negative impact of political decentralization on government quality persists when controlling for the degree of democratic maturity of countries but disappears when controlling for the extent of experience with statehood or public administration. This suggests that it is more affordable, in terms of government quality, to combine fiscal and political decentralization in countries with a long history of statehood.

Suggested Citation

  • Andreas P. Kyriacoua & Oriol Roca-Sagalésb, 2010. "Fiscal and Political Decentralization and Government Quality," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1005, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:ispwps:paper1005
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp1005.pdf
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    Cited by:

    1. Goel, Rajeev K. & Mazhar, Ummad & Nelson, Michael A. & Ram, Rati, 2017. "Different forms of decentralization and their impact on government performance: Micro-level evidence from 113 countries," Economic Modelling, Elsevier, vol. 62(C), pages 171-183.
    2. Jorge Martinez-Vazquez & Santiago Lago-Peñas & Agnese Sacchi, 2017. "The Impact Of Fiscal Decentralization: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 1095-1129, September.
    3. Vassilis Tselios & Andrés Rodríguez-Pose & Andy Pike & John Tomaney & Gianpiero Torrisi, 2012. "Income inequality, decentralisation, and regional development in Western Europe," Environment and Planning A, Pion Ltd, London, vol. 44(6), pages 1278-1301, June.
    4. Andreas P. Kyriacou & Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2018. "The efficiency of transport infrastructure investment and the role of institutions: an empirical analysis," Working Papers. Collection B: Regional and sectoral economics 1802, Universidade de Vigo, GEN - Governance and Economics research Network.
    5. Andrea Filippetti & Giovanni Cerulli, 2014. "Decentralization and the quality of local governments: Evidence in European regions with a dose-response approach," ERSA conference papers ersa14p367, European Regional Science Association.
    6. repec:bla:kyklos:v:70:y:2017:i:2:p:189-219 is not listed on IDEAS
    7. Andreas Kyriacou & Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2015. "Construction corrupts: empirical evidence from a panel of 42 countries," Public Choice, Springer, vol. 165(1), pages 123-145, October.
    8. Duncan M. Wagana & Mike A. Iravo & Joyce D. Nzulwa & John M. Kihoro, 2016. "Effect of Financial and Political Decentralization on Service Delivery in County Governments in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(6), pages 304-320, June.
    9. Nadia Fiorino & Emma Galli & Fabio Padovano, 2015. "How long does it take for government decentralization to affect corruption?," Economics of Governance, Springer, vol. 16(3), pages 273-305, August.
    10. Rajeev K. Goel & James W. Saunoris, 2017. "Forms of government decentralization and institutional quality: evidence from a large sample of nations," Chapters,in: Central and Local Government Relations in Asia, chapter 12, pages 395-420 Edward Elgar Publishing.
    11. Nadia Fiorino & Emma Galli & Fabio Padovano, 2013. "Do fiscal decentralization and government fragmentation affect corruption in different ways? Evidence from a panel data analysis," Chapters,in: The Challenge of Local Government Size, chapter 5, pages 121-147 Edward Elgar Publishing.
    12. Andreas P. Kyriacou & Oriol Roca Sagalés, 2018. "Decentralization and governance in Europe: Evidence from different expenditure components," Working Papers. Collection A: Public economics, governance and decentralization 1802, Universidade de Vigo, GEN - Governance and Economics research Network.
    13. Momi Dahan & Michel Strawczynski, 2016. "Budget Institutions and Government Effectiveness," CESifo Working Paper Series 6219, CESifo Group Munich.
    14. repec:eee:ecolet:v:159:y:2017:i:c:p:161-163 is not listed on IDEAS
    15. Kyriacou, Andreas P. & Roca-Sagalés, Oriol, 2011. "Fiscal decentralization and government quality in the OECD," Economics Letters, Elsevier, vol. 111(3), pages 191-193, June.
    16. David Bartolini & Raffaella Santolini, 2013. "Fiscal autonomy and quality of governance in OECD countries," Economics Bulletin, AccessEcon, vol. 33(1), pages 706-713.
    17. Francesco Pasimeni & Paolo Pasimeni, 2016. "An Institutional Analysis of the Europe 2020 Strategy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1021-1038, July.

    More about this item

    Keywords

    Quality of government; fiscal decentralization; political decentralization; democratic maturity; cross-section and panel data;

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