Decentralization and regional economic disparities
This paper analyses the impact of both fiscal and political decentralisation on regional productivity inequalities. The study of the influence of decentralisation on economic growth has received some attention in recent years, but very few studies deal with its impact on regional inequalities, both theoretically and empirically. In this paper, we analyse the relationship between different measures of regional inequalities in productivity, and several measures of political and fiscal decentralisation for a sample of 15 OECD countries. In order to control for other possible influences, we have also include in the analysis measures of public sector size and the type of party government. The results suggest a strong negative correlation between decentralisation, mainly fiscal decentralisation, and regional inequalities. Of course, much more analysis must be done before we can demonstrate such relationship. We hope that this paper will stimulate further research.
|Date of creation:||Aug 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
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.:
- 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.
- Zhang, Tao & Zou, Heng-fu, 1998.
"Fiscal decentralization, public spending, and economic growth in China,"
Journal of Public Economics,
Elsevier, vol. 67(2), pages 221-240, February.
- Tao Zhang & Heng-fu Zou, 2001. "Fiscal decentralization, public spending, and economic growth in China," CEMA Working Papers 58, China Economics and Management Academy, Central University of Finance and Economics.
- Tao Zhang & Heng-fu Zou, 1996. "Fiscal decentralization, public spending, and economic growth in China," Policy Research Working Paper Series 1608, The World Bank.
- Gary Woller & Kerk Phillips, 1998. "Fiscal decentralisation and IDC economic growth: An empirical investigation," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 139-148.
- Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-57, September.
- Freinkman, Lev & Yossifov, Plamen, 1999. "Decentralization in regional fiscal systems in Russia - trends and links to economic performance," Policy Research Working Paper Series 2100, The World Bank.
- Jorge Martinez-Vazquez & Robert McNab, 2001.
"Fiscal Decentralization and Economic Growth,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0101, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
- Cukierman, Alex & Webb, Steven B & Neyapti, Bilin, 1992. "Measuring the Independence of Central Banks and Its Effect on Policy Outcomes," World Bank Economic Review, World Bank Group, vol. 6(3), pages 353-98, September.
- Douglas Holtz-Eakin & Amy Schwartz, 1995.
"Spatial productivity spillovers from public infrastructure: Evidence from state highways,"
International Tax and Public Finance,
Springer, vol. 2(3), pages 459-468, October.
- Douglas Holtz-Eakin & Amy Ellen Schwartz, 1995. "Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways," NBER Working Papers 5004, National Bureau of Economic Research, Inc.
- Levine, Ross & Renelt, David, 1992.
"A Sensitivity Analysis of Cross-Country Growth Regressions,"
American Economic Review,
American Economic Association, vol. 82(4), pages 942-63, September.
- Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
- Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, number 9780198233831.
- Brennan,Geoffrey & Buchanan,James M., 1980.
"The Power to Tax,"
Cambridge University Press, number 9780521233293, June.
- Tsui, Kai-yuen, 1996. "Economic reform and interprovincial inequalities in China," Journal of Development Economics, Elsevier, vol. 50(2), pages 353-368, August.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p306. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.