Fiscal decentralization contributes to economic growth: evidence from state-level cross-section data for the United States

Akai, Nobuo; Sakata, Masayo

doi:10.1016/s0094-1190(02)00018-9

Cited by 433 publications

(431 citation statements)

References 4 publications

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“…The results of fiscal decentralization are in line with the study of Malik et al (2006). Our results also support Lin and Liu (2000), Akai and Sakata (2002), Thiessen (2003), Ebel and Yilmaz (2004), Limi (2005), andGemmell et al (2009) findings that fiscal decentralization positively influencing economic growth and employment.…”

Section: Estimation and Resultssupporting

confidence: 91%

Fiscal Decentralization and Employment in Pakistan

Faridi¹,

Chaudhry²,

Hanif³

et al. 2012

IBR

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Study emphasis that a successful fiscal decentralization process is a way to increase the participation of citizens in local level development and economic activities. Study explores that the fiscal decentralization has positive effect on employment generation while the negative relation with inflation and indirectly supports the positive relation with economic growth. Improvement in educational activities and economic integration promote employment activities in the state and fiscally decentralized economy has greater ability to promote these activities then the unitary governments. So, fiscal decentralization is a successful tool to promote employment activities, meanwhile it discourages the rise in nominal wages which contributes to higher inflation rate.

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Section: Estimation and Resultssupporting

confidence: 91%

Fiscal Decentralization and Employment in Pakistan

Faridi¹,

Chaudhry²,

Hanif³

et al. 2012

IBR

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“…In other words, the interpretation of the empirical evidence of the relation between economic performance and spatial disparities is that -if not wholly driven by the business cycle -the evolution of regional disparities is strongly related to national economic performance, rather than the result of any 'economic dividend' of devolution. This analysis is based upon our chosen proxy for decentralisation which, while commonly used in the literature (Oates, 1985;Woller and Phillips, 1998;Akai and Sakata, 2002), is -as we have acknowledged -not without its weaknesses (Martinez-Vazquez and Timofeev 2009). The direction of causality will, however, require further investigation and cross-national comparative study.…”

Section: An 'Economic Dividend' Of Devolution In the Uk?mentioning

confidence: 99%

In Search of the ‘Economic Dividend’ of Devolution: Spatial Disparities, Spatial Economic Policy, and Decentralisation in the UK

Pike

Rodríguez‐Pose

Tomaney

et al. 2012

Environ Plann C Gov Policy

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After a decade of devolution and amid uncertainties about its effects, it is timely to assess and reflect upon the evidence and enduring meaning of any 'economic dividend' of devolution in the UK. Taking a multi-disciplinary approach utilising institutionalist and quantitative methods, this paper seeks to discern the nature and extent of any 'economic dividend' through a conceptual and empirical analysis of the relationships between spatial disparities, spatial economic policy and decentralisation. Situating the UK experience within the historical context of its evolving geographical political economy, we find: i) a varied and uneven nature of the relationships between regional disparities, spatial economic policy and decentralisation that change direction during specific time periods; ii) the role of national economic growth is pivotal in explaining spatial disparities and the nature and extent of their relationship with the particular forms of spatial economic policy and decentralisation deployed; and, iii) there is limited evidence that any 'economic dividend' of devolution has emerged but this remains difficult to discern because its likely effects are over-ridden by the role of national economic growth in decisively shaping the pattern of spatial disparities and in determining the scope and effects of spatial economic policy and decentralisation.

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“…The lack of corrective actions documented by recent studies (OECD 2012) emerges from the simple descriptive statistics that we present. Then, we set up a theoretical framework with advantages assigned to well-balanced 3 This means that studies using parsimonious ways to measure the degree of decentralization may end up blurring the different implications of decentralizing the two sides of the budget (Akai andSakata 2002, Thieben 2003), or may see their results spoiled by potential measurement issues or because they overestimate the extent of autonomy given to local governments.. decentralization, i.e. with strong linkages between spending and taxation decisions at the local level.…”

Section: Introductionmentioning

confidence: 99%

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

2016

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A relevant mismatch between tax and expenditure decentralization characterizes many industrialized countries. The former is usually less pronounced than the latter, resulting in asymmetric fiscal decentralization arrangements. We investigate the nature of this asymmetry using a theoretical framework that explains why it is difficult to tackle it, despite a consensus on the benefits of a wellbalanced decentralization process. We find that asymmetry is intrinsic to fiscal decentralization, even in a scenario where clear advantages from well-developed decentralized systems arise. This implies that both empirical and theoretical contributions would benefit by taking into account the welfarereducing asymmetric nature of fiscal decentralization.

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Fiscal decentralization contributes to economic growth: evidence from state-level cross-section data for the United States

Cited by 433 publications

References 4 publications

Fiscal Decentralization and Employment in Pakistan

Fiscal Decentralization and Employment in Pakistan

In Search of the ‘Economic Dividend’ of Devolution: Spatial Disparities, Spatial Economic Policy, and Decentralisation in the UK

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

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