Abstract
In this paper we focus on the relationship between fiscal decentralization and government quality. In a sample of 29 developing and developed countries over the period 1984-1997, fiscal decentralization has a positive effect on institutional quality but this effect diminishes as countries become wealthier. Moreover, the positive effect of fiscal decentralization on government quality is reduced by electoral and decision-making decentralization in poor and medium income countries whereas these forms of decentralization seem to improve the impact of fiscal decentralization on government quality in rich countries. © 2009, Instituto de Estudios Fiscales.
Original language | English |
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Pages (from-to) | 131-156 |
Journal | Hacienda Publica Espanola |
Volume | 189 |
Issue number | 2 |
Publication status | Published - 16 Dec 2009 |
Keywords
- Fiscal decentralization
- Panel data
- Political decentralization
- Quality of government