2021
DOI: 10.1111/pbaf.12305
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Fiscal decentralization and regional economic growth: Evidence from Mexico since the 2000s

Abstract: This study aims to examine whether decentralization causes regional economic growth for the states of Mexico in the period 1998–2016. We employ Granger causality tests and a Panel data Vector Autoregression model to account for the dynamics of fiscal federalism and endogeneity of federal transfers and economic growth. Impulse responses and variance decomposition are also employed to examine the time path of economic growth after unitary fiscal shocks from transfers. Among the results, we find federal transfers… Show more

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Cited by 5 publications
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“…countries of the Organization for Economic Cooperation and Development (OECD). In contrast, (Mendoza-Velázquez et al, 2022) state that federal transfers positively affect local economic growth. Also, (Kim et al, 2020) propose that fiscal decentralization has a statistically significant impact on inclusive growth, demonstrated in redistribution indicators such as the level of the Gini coefficient and the labor share of income.…”
Section: Reice | 238mentioning
confidence: 98%
“…countries of the Organization for Economic Cooperation and Development (OECD). In contrast, (Mendoza-Velázquez et al, 2022) state that federal transfers positively affect local economic growth. Also, (Kim et al, 2020) propose that fiscal decentralization has a statistically significant impact on inclusive growth, demonstrated in redistribution indicators such as the level of the Gini coefficient and the labor share of income.…”
Section: Reice | 238mentioning
confidence: 98%