Fiscal decentralization and the quality of government: Evidence from panel data

Andreas P. Kyriacou, Oriol Roca-Sagalés

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7 Citations (Scopus)

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 languageEnglish
Pages (from-to)131-156
JournalHacienda Publica Espanola
Volume189
Issue number2
Publication statusPublished - 16 Dec 2009

Keywords

  • Fiscal decentralization
  • Panel data
  • Political decentralization
  • Quality of government

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