Decentralization, Fiscal Independence, and Poverty in the Philippines

Canare, Tristan; Francisco, Jamil Paolo S.

doi:10.1111/pbaf.12241

Cited by 15 publications

(10 citation statements)

References 60 publications

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“…Fiscal independence is an endowment of communities to finance their functions by themselves without relying on state government allocations (Akai & Sakata, 2002). Fiscal independence is the ability of LSG's to create their own funds and it is in reverse relationship with poverty (Canare & Francisco, 2019). It is worth mentioning that according to the 93rd article of the RA law “On Local Self‐Government”, LSG's have a right to get contributions from the state budget.…”

Section: Introductionmentioning

confidence: 99%

The structural changes in Armenian Community budgets within the process of community consolidation

KARAPETYAN

Muradyan

Yeranosyan

et al. 2021

Regional Science Policy & Practice

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This paper investigates the financial decentralization in the Republic of Armenia (RA) within the context of community consolidation processes that started in RA in 2015. It presents conclusive and empirically tested interpretation of the changes in the own‐sourced revenues of the community budgets due to consolidation processes and assesses the pace and direction of changes in the weight of own‐sourced revenues in the consolidated vs. non‐consolidated community budgets using β‐ and σ‐convergence models. It has examined the data collected from 501 communities in RA from 2015 through 2018. The results of the research pinpoint that the growth pace of own‐sourced revenues is higher in the consolidated communities as compared to non‐consolidated communities. This evidence supports the initial hypothesis specified in the “Concept of community consolidation and formation of intercommunity units” adopted by the Government of RA, that the consolidation of communities will result in expansion of the revenue generation capacity of the newly formed communities, which needs to be disseminated by policy‐makers in non‐consolidated communities to support the even transition process of the further consolidation that will relaunch after the Velvet Revolution of 2018.

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Section: Introductionmentioning

confidence: 99%

The structural changes in Armenian Community budgets within the process of community consolidation

KARAPETYAN

Muradyan

Yeranosyan

et al. 2021

Regional Science Policy & Practice

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“…Based on research by Canare (2020), the impact of fiscal decentralization on poverty reduction at the provincial level in Vietnam is estimated through the following model:…”

Section: Models Methods and Data A Regression Modelmentioning

confidence: 99%

“…According to Canare (2020), the ratio of revenue originating from the province/city to the total revenue of the province/city can cause endogenous conditions. The proportion of revenues originating from the province/city can affect its poverty level.…”

Section: B Estimation Methods and Datamentioning

confidence: 99%

The Impact of Fiscal Decentralization on Poverty Reduction in Vietnam

Pham

Bui

Duc

et al. 2022

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In Vietnam, the issue of decentralization and implementation of decentralization have been a concern for a long time. This study focuses on the impact of fiscal decentralization on poverty reduction in Vietnam. Based on the provincial data with the use of the two-stage least squares method (2SLS), the estimation results obtained for the two periods show that fiscal decentralization had an impact on income/expenditure poverty reduction in the period from 2010–2015 and it had no significant effect on multidimensional poverty reduction in the period from 2016–2019. The study also found that economic growth, education and local welfare spending had an impact on poverty reduction in both stages, in which the impact of economic growth is relatively large, while the impact of welfare expenditures is relatively small in the locality. Improving infrastructure through information networks and increasing participation of people at the grassroots level have no impact on income/expenditure poverty reduction and multidimensional poverty in both the 2010–2015 and 2016–2019 periods.

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“…The marginal effect then diminishes until it becomes negative at high levels of decentralization. Canare and Francisco (2019) explained that such inverted-U relationship between decentralization and development can be caused by the interplay between the effectiveness of local and central government programs. Specifically, development programs implemented by local governments may be effective only up to a certain point, beyond which, the programs of the central government become more important.…”

Section: Theoretical and Conceptual Literature And Frameworkmentioning

confidence: 99%

Decentralization and welfare: Evidence from a panel of countries

Canare

2021

Ann Public Coop Econ

Self Cite

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This study empirically tested for the relationship between different measures of decentralization and three indicators of welfare-per capita income, poverty incidence, and the human development index. It utilized a panel data of around 60 countries of various income levels for the ten-year period from 2006 to 2015. The study primarily employed the System GMM method, along with some robustness checks. Results suggest that decentralization is associated with higher per capita income; but it has no relationship with poverty nor with HDI. The relationship, however, is not linear-it increases at a decreasing rate until it becomes negative at high levels of decentralization. In addition, revenue decentralization has the strongest relationship with per capita income among the three decentralization measures tested. There is also evidence that good governance strengthens the positive relationship between decentralization and per capita income; and that the decentralization-welfare relationship varies across country income levels.

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Decentralization, Fiscal Independence, and Poverty in the Philippines

Cited by 15 publications

References 60 publications

The structural changes in Armenian Community budgets within the process of community consolidation

The structural changes in Armenian Community budgets within the process of community consolidation

The Impact of Fiscal Decentralization on Poverty Reduction in Vietnam

Decentralization and welfare: Evidence from a panel of countries

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