2022
DOI: 10.3390/economies10030062
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Is Fiscal Decentralization Growth Enhancing? A Cross-Country Study in Developing Countries over the Period 1990–2014

Abstract: For several decades, many scholars have widely debated the nexus between devolution of fiscal powers and efficiency. However, several studies have neglected the role of institutions and other institutional settings in fiscal decentralization. This study augments the literature by revisiting the fiscal decentralization–growth nexus regarding institutional quality in 24 developing countries over the period 1990–2014. By using estimators of fixed effects (FE), random effects (RE), and the system generalized metho… Show more

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Cited by 7 publications
(8 citation statements)
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“…According to Digdowiseiso (2022), the negative impact of fiscal decentralization on economic growth should not be interpreted as supporting centralized systems of public administration. The effectiveness of fiscal decentralization in relation to growth should be assessed from the perspective of institutions (Digdowiseiso, 2022). Erlingsson (2022) recommended that a research programme needs to be developed in Sweden that will systematically analyse the ways in which the political system distributes responsibilities between levels of government and how this affects trust and satisfaction at the local, regional and central levels.…”
Section: Discussionmentioning
confidence: 99%
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“…According to Digdowiseiso (2022), the negative impact of fiscal decentralization on economic growth should not be interpreted as supporting centralized systems of public administration. The effectiveness of fiscal decentralization in relation to growth should be assessed from the perspective of institutions (Digdowiseiso, 2022). Erlingsson (2022) recommended that a research programme needs to be developed in Sweden that will systematically analyse the ways in which the political system distributes responsibilities between levels of government and how this affects trust and satisfaction at the local, regional and central levels.…”
Section: Discussionmentioning
confidence: 99%
“…Teremetskyi et al (2021) indicate that the priority goal in this context is to promote bottom-up regional development by giving subnational governments more freedom in identifying programmes that match the public interest, as well as local and regional development goals. Digdowiseiso (2022) maintains that different institutional conditions for fiscal decentralization can significantly contribute to growth in developing countries. Different types of fiscal authorities have a significant impact on income distribution and ethnic inequality.…”
Section: Introductionmentioning
confidence: 99%
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“…Scientists note (Derhaliuk et al, 2021;Desiatniuk and Marchenko, 2021;Digdowiseiso, 2022) that the current state of economic development is characterized by the intensification of destructive processes caused by the economic crisis, military aggression in the east of the state, the beginnings of command and the administrative system, antagonism of the boundless growth of social needs and disabilities, a significant level of shading. Despite the fact that our country is recognized as a market economy in order to apply for the completion of market transformations, and the successful achievement of the results is not necessary.…”
Section: Literature Reviewmentioning
confidence: 99%
“…The top relevance for the present work is how decentralization affects the development of rural territories and their economies. The research in the scientific literature on the topic of decentralization usually concentrates on the impact of this process on accountability, economic freedom, and political and civil liberties [3]; technological innovation and green development efficiency [4]; environmental pollution [5][6][7]; economic growth [8][9][10][11][12][13][14]; government and corruption [15][16][17][18]; regional disparities [19][20][21][22], etc. The research in the scientific literature also concerns the influence of decentralization on social development by decentralizing budget expenditures [23][24][25][26][27].…”
Section: Introductionmentioning
confidence: 99%