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Forms of Government Decentralization and Institutional Quality: Evidence from a Large Sample of Nation

Author

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  • Goel, Rajeev K.

    (Asian Development Bank Institute)

  • Saunoris, James W.

    (Asian Development Bank Institute)

Abstract

This paper studies the effects of various forms of government decentralization on institutional quality across countries. Using corruption and the shadow economy to proxy for institutional quality, as well as three forms of government decentralization (i.e., virtual, physical, and fiscal), the econometric results show virtual decentralization to be the most effective in improving institutional quality. The effects on transition and countries in Asia are also considered.

Suggested Citation

  • Goel, Rajeev K. & Saunoris, James W., 2016. "Forms of Government Decentralization and Institutional Quality: Evidence from a Large Sample of Nation," ADBI Working Papers 562, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0562
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    References listed on IDEAS

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    More about this item

    Keywords

    government decentralization; shadow economy; institutional quality; virtual decentralization;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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