Ezcurra, Roberto and Rodríguez-Pose, Andrés 
ORCID: 0000-0002-8041-0856
(2010)
Is fiscal decentralization harmful for economic growth? Evidence from the OECD countries.
SERC Discussion Papers (SERCDP0051).
Spatial Economics Research Centre (SERC), London School of Economics and Political Science, London, UK.
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Abstract
The global drive towards decentralization has been increasingly justified on the basis that greater transfers of resources to subnational governments are expected to deliver greater efficiency in the provision of public goods and services and greater economic growth. This paper examines whether this is the case, by analysing the relationship between decentralization and economic growth in 21 OECD countries during the period between 1990 and 2005 and controlling not only for fiscal decentralization, but also for political and administrative decentralization. The results point towards a negative and significant association between fiscal decentralization and economic growth in the sample countries, a relationship which is robust to the inclusion of a series of control variables and to differences in expenditure preferences by subnational governments. The impact of political and administrative decentralization on economic growth is weaker and sensitive to the definition and measurement of political decentralization.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://www.spatialeconomics.ac.uk/SERC/publication... |
| Additional Information: | © 2010 Roberto Ezcurra and Andrés Rodríguez-Pose |
| Divisions: | European Institute Geography & Environment Spatial Economics Research Centre |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HJ Public Finance |
| Date Deposited: | 24 Mar 2011 11:22 |
| Last Modified: | 11 Dec 2024 19:01 |
| URI: | http://eprints.lse.ac.uk/id/eprint/33518 |
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