Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries

Meloche, Jean-Philippe; Vaillancourt, François; Ebel, Robert D.

doi:10.1596/1813-9450-3254

Cited by 7 publications

(3 citation statements)

References 9 publications

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“…Better roads, higher standards of schools and more effective health services can be provided. In other words, decentralization contributes to economic growth and development if it provides more efficiency in allocating (Meloche et al, 2004, p. 3, USAID, 2005. In addition, it is seen that decision-making by the central administration in education service prolongs bureaucratic procedures and it can be said that it prevents decision making in accordance with citizen preferences.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Decentralization of Education Services and Applicability in Turkey

UZUN

2022

ijoess

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Today, in the field of public service, it is very important and rooted in theory and practice all over the world changes are occurring. These changes are; change in the perspective of the state, management and service localization, and demilitarization. The management logic and techniques in the private sector manifests itself as the application of its management and services. In this direction, change on educational services are among the most important public services. Data are collected from national and international researches, report from OECD, World Bank reports and database, EU publications, UN IIEP (International Institute for Educational Planning) publications, Ministry of Education studies, thesis from Turkish Higher Education Counsil database, and articles from experts and researchers. The financial data are taken from the Ministry of Education, Ministry of Treausory and Finance, Ministry of Interiors, and the municipalities' annual reports. This research is prepared to search the feasibility of decentralization of education services in Turkey. In this study, the results of the existing theories and the localization of educational services combined. Thus, the possible positive and negative effects of the decentralization of education services, negative economic, social and political effects have been tried to be revealed. In this context, legal ground, political environment, technical, administrative, and financial capacity of local government units, rent status, equality, necessary for the localization of education services in Turkey within the framework of factors such as the existence of the infrastructure is also examined. As a result of the study in question, there is a global scale decentralization in the field of education. There is a decentralization flow, but the current conditions of the decentralization of education services (especially under the responsibility of municipalities) in Turkey and the criteria discussed and it is concluded that it should be handled very carefully in terms of has been reached.

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Section: Conclusion and Discussionmentioning

confidence: 99%

Decentralization of Education Services and Applicability in Turkey

UZUN

2022

ijoess

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“…The fiscal sufficiency is generally regarded as the key factor in the division of fiscal power in China (Chen et al., 2016). A review of existing empirical studies shows that the “fiscal autonomy” has been used as a common measure of fiscal sufficiency, and is measured as the percentage of the revenue of a local region to its total expenditure (Huang, 2019; Jiao, 2020), or as the ratio of local fiscal revenue to its total revenue (Ebel & Yilmaz, 2002; Meloche et al., 2004). The “fiscal comfort level” also has been used to measure local fiscal sufficiency, measured by the ratio of local revenue index to expenditure demand index (Cowan, 1997).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Fiscal self‐sufficiency, debt policy, and long‐term sustainability in China's emerging local bond market

Shi

Bland

2023

Public Admin & Development

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Using panel data from 155 Chinese provincial‐level governments between 2015 and 2020, this study develops fiscal indicators to measure the sustainability of China's bond market given its institutional context. With these indicators, the research empirically explores the effect of fiscal institutions such as centrally‐imposed debt limits on local governments' debt sustainability. It also investigates the capacity of local governments for self‐sufficiency to meet their debt obligations and maintain long‐term sustainability. We find that debt limits have promoted local debt sustainability while local fiscal self‐sufficiency has had little effect on debt sustainability in the long‐term. The findings provide public finance and policy scholars with an understanding of the effectiveness of fiscal institutions such as debt limits imposed by China's central government.

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“…The literature on the relationship between fiscal federalism and economic activities is vast and mixed: some studies found a clear positive relationship, e.g., [20][21][22][23][24][25][26]; some found negative relationships, e.g., [27][28][29][30][31]; while several others found no relationship at all, e.g., [32]. Traditional literature on fiscal federalism [6][7][8][9]12,33] posit that fiscal decentralization has a positive effect on economic activities.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Development–Fiscal Federalism Nexus: A “Beyond GDP” Approach

2022

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The hypothetical allocative efficiency of fiscal federalism and its potential welfare impact have fueled the increased fiscal authority of subnational governments experienced in most countries around the world. This research sheds light on important aspects of developmental outcome of fiscal federalism which hitherto either have not been explored or have been obscured by the exclusive use of GDP or GDP growth as the empirical measure of welfare and development in previous studies. The National Sustainable Development Index (NSDI) and its subcomponent indices were computed for 40 selected countries from 2006 to 2018. Using the NSDI as welfare proxy and employing the difference and system generalized method of moments techniques, this study revealed that fiscal federalism has no significant impact on aggregate sustainable development, environmental and natural resource development index, and social development index, but has a positive impact on economic development index. Hence, fiscal federalism discourse among policy decision-makers in most countries seems to have been based on economic development considerations, leaving out other important dimensions of sustainable development. Therefore, in designing a fiscal federalism apparatus, policy decision-makers should consider proper coordination of the three dimensions of sustainable development if the development-enhancing role of fiscal federalism is to be sustainably achieved.

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Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries

Cited by 7 publications

References 9 publications

Decentralization of Education Services and Applicability in Turkey

Decentralization of Education Services and Applicability in Turkey

Fiscal self‐sufficiency, debt policy, and long‐term sustainability in China's emerging local bond market

Sustainable Development–Fiscal Federalism Nexus: A “Beyond GDP” Approach

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