Administrative fragmentation and economic performance of OECD TL2 regions

David Bartolini ()

OECD Journal: Economic Studies, 2017, vol. 2016, issue 1, 109-129

Abstract: The present work investigates the relationship between administrative fragmentation and regional per capita GDP growth rate, using a panel of OECD TL2 regions in the period 1996-2011. According to the fiscal decentralisation literature, fragmentation should enhance growth as local governments can implement policies that better match citizens’ needs, thus providing services and public goods in a more efficient way. The presence of many local governments, however, may result in overlapping functions, (dis)economies of scale, and uncoordinated policies.

Keywords: Regional development; administrative fragmentation; local governments (search for similar items in EconPapers)
JEL-codes: R11 R50 (search for similar items in EconPapers)
Date: 2017
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