Revisiting the Relation Between Decentralization and Growth in the Context of Marketization

Abdellatif, Lobna; Aly, Heidi

doi:10.1080/00128775.2015.1065152

Cited by 8 publications

(4 citation statements)

References 39 publications

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“…Abdellatif et al. () find that fiscal decentralization influences economic growth in East European countries over the 2002–2008 period. This result is due to the fact that local governments drive the private sector into delivering public services, thereby reducing local government size.…”

Section: Literature Reviewmentioning

confidence: 99%

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Fiscal Decentralization and Economic Growth of Vietnamese Provinces: The Role of Local Public Governance

Thanh

Nguyen

2019

Ann Public Coop Econ

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This study offers an insight into the public governance role in the relationship between fiscal decentralization and provincial economic growth in Vietnam. Fiscal decentralization measures are assorted. Applying a sequential (two‐stage) estimation for the panel data of 62 provinces of Vietnam over the 2006–2015 period, we find that first, fiscal decentralization is positively related to the economic growth of Vietnamese provinces. Second, the effects of public governance on economic growth vary across provinces depending on various levels of local public governance. Interestingly, the effect of fiscal decentralization is strengthened when this variable is added along with better quality of public governance. In a region of high public governance quality, fiscal decentralization exerts a positive effect on its economic growth. Our findings imply that the design of fiscal decentralization needs to be associated with local governments’ ability of public governance to improve the local economic growth.

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Section: Literature Reviewmentioning

confidence: 99%

“…From this perspective, fiscal decentralization increases economic growth and then local government size is reduced (Abdellatif et al. ). In this regard, we use the Provincial Competitiveness Index (PCI) as a proxy for local economic governance or institutions.…”

Section: Introductionmentioning

confidence: 99%

Fiscal Decentralization and Economic Growth of Vietnamese Provinces: The Role of Local Public Governance

Thanh

Nguyen

2019

Ann Public Coop Econ

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“…On the other hand, empirical studies do not provide a clear answer on the impact of fiscal decentralization on economic growth. Some authors confirm a positive relationship (Abdellatif et al, 2015; Jalil et al, 2014; Szarowska, 2014), while others emphasize the negative correlation (Baskaran & Feld, 2013; Rodríguez‐Pose & Ezcurra, 2011; Rodríguez‐Pose & Kroijer, 2009, among others).…”

Section: Transmission Channelsmentioning

confidence: 96%

Regional disparities, transmission channels and country's economic growth

Piętak

2021

Journal of Regional Science

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Regional disparities reflect the development pattern in many countries. Rich regions or prosperous cities confirm the unbalanced nature of economic growth. However, there is the lack of studies undertaking the role of regional stratification in the national economy. This study explores the transmissions channels through which regional disparities may affect the country's growth. A system or recursive equation by means of the control function approach (CFA) was applied to empirically assess the weight of these mechanisms. The level of regional disparities within the EU countries at nomenclature of territotial units for statistics‐2 level was calculated applying economic polarization measures. Empirical results, based on panel data analysis, showed that overall regional disparities affect negatively growth. However, after exploring transmission channels of this relationship, it was shown that regional differences in human capital or investments may enhance growth at the national level. The results were robust to various estimation methods.

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“…The connection between FD and economic growth has been extensively discussed throughout the recent decades (Baskaran and Feld 2013 ; de Xavier et al 2021 ; Ganaie et al 2018 ; Iimi 2005 ; Liu et al 2019 ). FD is thought to boost output by introducing “transparency and lowering corruption by closely tying elected leaders and voters” together (Abdellatif et al 2015 ). Under India’s decentralized system, local governments are answerable and accountable to their local communities.…”

Section: Synopsis Of Related Workmentioning

confidence: 99%

Exploring the asymmetric effect of fiscal decentralization on economic growth and environmental quality: evidence from India

Mishra

Arjun

Tiwari

2023

Environ Sci Pollut Res

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In recent years, environmental issues have become controversial, and policymakers are discovering new predictors of carbon emissions. Some economists/researchers have advocated for fiscal decentralization to improve the quality of the environment by offering more financial authority to provincial/local and sub-national governments. Therefore, this work aims to inspect the effect of fiscal decentralization on economic growth and environmental quality in India by taking data from 1996 to 2021. This work applies both ARDL and NARDL econometric models for empirical examination. The findings of this study suggest that expenditure decentralization has asymmetric long-term and short-term consequences on economic growth, and carbon emission in India. The result of the asymmetric ARDL model also indicates that positive and negative shock in expenditure decentralization contrarily affects economic growth and carbon emission. Moreover, the positive and negative shock in revenue decentralization helps in reducing carbon emissions both in the long run and short run in India. These outcomes are useful for policy analysis from the Indian economic policy perspective. The study also laid out potential outcomes that may benefit India’s local governments and central government in resolving the issues of economic growth and environmental degradation.

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Revisiting the Relation Between Decentralization and Growth in the Context of Marketization

Cited by 8 publications

References 39 publications

Fiscal Decentralization and Economic Growth of Vietnamese Provinces: The Role of Local Public Governance

Fiscal Decentralization and Economic Growth of Vietnamese Provinces: The Role of Local Public Governance

Regional disparities, transmission channels and country's economic growth

Exploring the asymmetric effect of fiscal decentralization on economic growth and environmental quality: evidence from India

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