The article explains the horizontal inequality problem which is an obstacle for fiscal decentralisation which has been 21th century trend and shown as a solution to the inefficiency of the public sector by the case of Turkey. The aim of this study is to reveal the signs of fiscal decentralisation in Turkey and to contribute to the local government economics by revealing whether people migrate with the fiscal considerations. The article consists of quantitative analysis section and empirical analysis section. In quantitative analysis section using various fiscal data, the horizontal inequality problem is revealed. In the section of the empirical analysis, the existence of the fiscal considerations about inner migration is analysis including period 2007-2010 with annual data based on panel data techniques in Turkey. According to test results showing how the model should be constructed, testing the existence of the fiscal considerations about iner migration bases on a random effects model.
Keywords: Local Government Economics, Fiscal Decentralisation, Horizontal Inequality.
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