What is in it for the poor? Evidence from fiscal decentralization in Vietnam
Like other developing countries, Vietnam has attempted to push for greater fiscal decentralization in the hope of a more efficient delivery of social services to targeted citizens. The fiscal decentralization initiative is encouraging and merits pursuit, but the present study however, shows that a misstep in the decentralization process can discriminate disproportionately against the poor. Specifically, an increase in the sub-provincial share of the total provincial expenditures is predicted to bring about an appreciable decrease in the lowest-quintile average monthly income. We suggest that the Vietnamese government require provinces to adopt pro-poor allocation norms rather than reclaiming its control over the provincial expenditure assignment. This paper’s empirical findings sound a note of considerable caution that other developing countries should exercise in their fiscal decentralization efforts to avoid creating unintended consequences for the poor.
|Date of creation:||Jan 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pranab Bardhan & Dilip Mookherjee, 2006. "Decentralisation and Accountability in Infrastructure Delivery in Developing Countries," Economic Journal, Royal Economic Society, vol. 116(508), pages 101-127, 01.
- G. Gulsun Arikan, 2004. "Fiscal Decentralization: A Remedy for Corruption?," International Tax and Public Finance, Springer, vol. 11(2), pages 175-195, 03.
- Jorge Martinez-Vazquez, 2004.
"Making Fiscal Decentralization Work in Vietnam,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0404, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Jorge Martinez-Vazquez, 2005. "Making Fiscal Decentralization Work in Vietnam," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0513, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Fisman, Raymond & Gatti, Roberta, 2002.
"Decentralization and corruption: evidence across countries,"
Journal of Public Economics,
Elsevier, vol. 83(3), pages 325-345, March.
- Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
- Rao, M.,Govinda, 2000. "Fiscal Decentralization in Vietnam: Emerging Issues," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 41(2), pages 163-177, December.
- Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:9344. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.