More on decentralization and economic growth

Abstract

This article casts new evidence on the e¤ects of decentralization on economic growth. Based on the literature on the e¤ects of institutions on the economy, such e¤ects are assumed to accrue through total factor productivity (TFP ). We try to overcome the recent criticisms of the empirical approaches regarding the proper measures of variables capturing decentralization. Thus, …ve variables to capture decentralization are proposed. Panel data for the regions of Spain over the 1986-2010 period are used. The results show that the …nancial autonomy and the share of regional investment in public infrastructure seem to positively a¤ect the economic growth of Spanish regions. However, a negative e¤ect is found for the number of responsibilities transferred to the regions. Moreover, the empirical evidence could be suggesting that the Spanish state might be near or surrounding the optimal level of decentralization. Results are fairly robust to di¤erent estimation methods and measures of TFP, regardless of the assumption of constant returns to scale.

9. A propósito da regionalização em Portugal: o processo em Espanha

“…151.º) das regiões históricas, como Catalunha (1979), P. Basco (1979), Galiza (1981 e Andaluzia (1981), que lhes atribuiu de imediato um elevado número de competências, e ii) pela via "comum", no caso das demais regiões. Para além das 2 vias gerais, a Const.78 (primeira disposição adicional) reconhece "direitos históricos dos territórios forais" e especificidades próprias, nomeadamente no campo fiscal ("haciendas forales"), ao P. Basco e Navarra (Moreno, 2002;Carrión-I-Silvestre et al, 2008;Gil-Serrate et al, 2011;Aray, 2018;Mora-Sanguinetti e Spruk, 2023). Assim, todas as regiões espanholas obtiveram o seu 1.º estatuto de autonomia antes de 1984, e a partir de 2006, quatro das CA (Catalunha, 2006, Andaluzia e Aragão, 2007, e Canárias, 2018 renovaram os seus estatutos de autonomia, e outras 4 outras (Valência, Castela e Leão, Ilhas Baleares e Extremadura) aprofundaram os seus estatutos e poderes.…”

Economic effects of recent experiences of federalism: Analysis of the regionalization process in Spain

“…In addition to these two general ways, the Spanish Constitution (first additional provision) recognizes the “historical rights of the foral territories” (Basque Country and Navarre) and establishes that their updating will be carried out within the framework of the Statutes of Autonomy. Consequently, the autonomy of the Basque Country and Navarre has specificities, specifically in the fiscal field (“haciendas forales”) (Aray, 2018; Carrión‐i‐Silvestre et al, 2008; Gil‐Serrate et al, 2011; Mora‐Sanguinetti & Spruk, 2018; Moreno, 2002).…”