Impacts of Fiscal Decentralization and Economic Growth: A Meta-Analysis Approach

Albehadili, Anwer Fadiel Sacheit; Hai, Lu

doi:10.18775/ijmsba.1849-5664-5419.2014.45.1004

Cited by 3 publications

(3 citation statements)

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“…They found that effective fiscal decentralization is a tool that facilitates greater efficiency and effectiveness in the local government while promoting economic growth in South Africa. According to Albehadili and Hai ( 2018 ), fiscal decentralization might be a solution to the issues that central and local governments confront. The reason is that fiscal decentralization boosts economic efficiency and makes it easier for the government to respond to the demands of its inhabitants.…”

Section: Introductionmentioning

confidence: 99%

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Udeagha

Breitenbach

2023

Financ Innov

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The argument over fiscal decentralization and carbon dioxide emission (CO2) reduction has received much attention. However, evidence to back this claim is limited. Economic theory predicts that fiscal decentralization affects environmental quality, but the specifics of this relationship are still up for debate. Some scholars noted that fiscal decentralization might lead to a race to the top, whereas others contended that it would result in a race to the bottom. In light of the current debates in environmental and development economics, this study aims to provide insight into how this relationship may function in South Africa from 1960 to 2020. In contrast to the existing research, the present study uses a novel dynamic autoregressive distributed lag simulation approach to assess the positive and negative changes in fiscal decentralization, scale effect, technique effect, technological innovation, foreign direct investment, energy consumption, industrial growth, and trade openness on CO2 emissions. The following are the main findings: (i) Fiscal decentralization had a CO2 emission reduction impact in the short and long run, highlighting the presence of the race to the top approach. (ii) Economic growth (as represented by the scale effect) eroded ecological integrity. However, its square (as expressed by technique effect) aided in strengthening ecological protection, validating the environmental Kuznets curve hypothesis. (iii) CO2 emissions were driven by energy utilization, trade openness, industrial value-added, and foreign direct investment, whereas technological innovation boosted ecological integrity. Findings suggest that further fiscal decentralization should be undertaken through further devolution of power to local entities, particularly regarding environmental policy issues, to maintain South Africa’s ecological sustainability. South Africa should also establish policies to improve environmental sustainability by strengthening a lower layer of government and clarifying responsibilities at the national and local levels to fulfill the energy-saving functions of fiscal expenditures.

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Section: Introductionmentioning

confidence: 99%

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Udeagha

Breitenbach

2023

Financ Innov

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“…The impacts of fiscal decentralization on economic growth in South Africa have been studied in few empirical research. Fiscal decentralization, according to Albehadili and Hai ( 2018 ), might be a solution to the issues that both central and local governments confront since it boosts economic efficiency and makes it easier for government to respond to the demands of its inhabitants. Moche et al ( 2014 ) used a panel VAR and found that fiscal decentralization reduces poverty and improves economic performance in all eight metropolitan municipalities.…”

Section: Introductionmentioning

confidence: 99%

Can fiscal decentralization be the route to the race to zero emissions in South Africa? Fresh policy insights from novel dynamic autoregressive distributed lag simulations approach

Udeagha

Breitenbach

2023

Environ Sci Pollut Res

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There has been a plethora of debate on the link between fiscal decentralization and a drop in carbon dioxide (CO 2 ) emissions, even though the evidence supporting this assertion is relatively sparse. Although the precise nature of this relationship is still up for discussion, economic hypothesis postulates that fiscal decentralization has an impact on environmental sustainability. Some researchers claim that fiscal decentralization could potentially result in a race to the top, while some believe it would lead to a race to the bottom. This analysis intends to shed light on the precise processes by which this connection may work in South Africa between 1960 and 2020 in light of current discussions in environmental and development economics. In contrary to previous studies, this paper employs a cutting-edge dynamic autoregressive distributed lag simulations methodology to evaluate the positive and negative variations in fiscal decentralization on CO 2 emissions. Our findings demonstrate the prevalence of the race to the top strategy by illustrating how fiscal decentralization has a bearing on CO 2 emissions reduction in the short and long terms. In accordance with the findings, greater fiscal decentralization should be implemented through the transfer of more powers to regional authorities, especially in the realm of environmental legislation considerations, in a bid to preserve South Africa’s environmental integrity. By establishing a lower tier of government and defining roles at the federal and provincial divisions, South Africa could adopt strategies to improve green environment in an effort to fulfill the energy-saving tasks of fiscal expenditures.

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“…Decentralisation has been regarded as the major institutional framework for How to cite this paper: Hackman, J J.K., Ayarkwa, J., Osei-Asibey, D., Acheampong, A. and Nkrumah, P.A. (2021) Bureaucratic Factors Impeding the Delivery of Infrastructure at the Metropolitan Municipal and District Assemblies (MMDAs) in economic growth and development in the last decades around the world [1] [2].…”

Section: Introductionmentioning

confidence: 99%

Bureaucratic Factors Impeding the Delivery of Infrastructure at the Metropolitan Municipal and District Assemblies (MMDAs) in Ghana

Hackman¹,

Ayarkwa²,

Osei‐Asibey³

et al. 2021

WJET

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Decentralisation of infrastructure delivery to sub-national governments has become commonplace in governments worldwide especially in developing countries such as Ghana. This is due to the benefits of decentralisation in improving public service delivery. However, decentralised infrastructure delivery is marred with numerous challenges that render most local governments incapable of providing infrastructure within their localities. This paper explored the bureaucratic factors that impede infrastructure delivery at the MMDAs in Ghana. A questionnaire survey with 121 construction professionals in the Departments of Works (DoWs) of the MMDAs within the Ashanti and Greater Accra Regions of Ghana was conducted. The results indicated six (6) major components of the bureaucratic factors that impede the delivery of infrastructure at the MMDAs: Central government bureaucracy; Minimal control of MMDAs; Political influence; MMDA project funding; Lack of capacity of MMDAs; and Political interference. This paper calls for a more committed central government to the establishment of adequate decentralised structures and implementation of major reforms that would remove the bureaucratic obstacles in the delivery of infrastructure at the MMDAs, to ensure effective infrastructure delivery at the MMDAs.

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Impacts of Fiscal Decentralization and Economic Growth: A Meta-Analysis Approach

Cited by 3 publications

References 0 publications

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights

Can fiscal decentralization be the route to the race to zero emissions in South Africa? Fresh policy insights from novel dynamic autoregressive distributed lag simulations approach

Bureaucratic Factors Impeding the Delivery of Infrastructure at the Metropolitan Municipal and District Assemblies (MMDAs) in Ghana

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