Decentralization and growth: Do informal institutions and rule of law matter?

Trust as a catalyst for regional growth in a decentralized Europe: The interplay between informal and formal institutions in driving economic growth

“…T A B L E 5 Robustness check The other reason is that this paper does not use instrumental variables. Second, although we do not find an interaction effect between trust and the degree of decentralization, related empirical studies (e.g., Mauro et al, 2018;Muringani et al, 2019) show that the latter works indirectly through the QoG. Third, the paper focused on self-rule, but different forms and decentralization measures might have different results.…”

“…In contrast, Canavire-Bacarreza et al (2020) find positive outcomes on both types of fiscal decentralization. Other studies (e.g., Blöchliger & Égert, 2013;Carniti et al, 2019;Mauro et al, 2018;Thiessen, 2003) further examine and find fiscal decentralization and its types to have nonlinear effects on economic growth. For instance, Thiessen (2003) finds a positive relationship with economic growth when expenditure decentralization is increasing from a low level but peaks and turns negative.…”

“…Keating (2007) argues that trust determines the success or failure of decentralization reforms. While Mauro et al (2018) investigate the interaction between trust and decentralization on economic growth and find the nonlinear effects of tax decentralization and the interaction between expenditure decentralization and social capital, their study is a country-level analysis, and so is the measurement of trust. Still, the interaction between trust and decentralization and its association with economic growth at the regional level is assumed and neglected at best.…”

Well‐being in European regions: Does government quality matter?

“…To capture differences in regional autonomy, we use an indicator of regional economic self‐rule proposed by Sorens (), which represents the degree of authority exercised by a regional government over citizens. A quadratic specification is also considered to capture non‐linearities, given that the existing literature analysing the effect of decentralization on economic development and resilience has reported both positive (Iimi, ) and negative relationships (Rodríguez‐Pose & Ezcurra, ) as well as both U‐shaped (Ezcurra & Rios, ; Thieben, ) and inverted U‐shaped relationships (Mauro, Pigliaru, & Carmeci, ).…”

The Moderating Effects of Institutional Qualities and Energy Use on the Economic Output

“…The rule of law significantly improves growth, but countries who have adopted a democratic government system benefited the most from economic growth (Butkiewicz and Yanikkaya, 2006). Mauro et al (2018) argue that government to whom want to achieve decentralized policy to promote economic growth most carefully chose the rule of laws. That is, the rule of laws matter a lot in making a decision about economic growth.…”