Fiscal decentralisation, inclusion and regional competitiveness: Evidence for a federalism model

Nerhum Sandambi

No td7vw_v1, SocArXiv from Center for Open Science

Abstract: Through more assertive fiscal decentralisation, the starting point is to analyse in a plausible manner the main implications that are in fact related to its application in a federalist model context. Thus, unitary states in particular do not in fact have evidence of ensuring better fiscal inclusion capacity in their territories. Thus, in this particular approach, I propose significant fiscal decentralisation. The approach shows that, through Structural Imbalance Correction Mechanisms, it is possible to guarantee greater growth dynamics for regions with lower potential. however, regions with lower potential will in fact be the regions that should nevertheless grow significantly in a progressive manner. There is, however, other evidence that contributes to making regions more attractive through a more inclusive fiscal policy. The approach also shows that municipalities with lower attractiveness potential will in fact tend to attract to their territory, as a fiscal headquarters, a group of companies capable of driving a transformation dynamic through significant increases in tax incentives and, in fact, leading their respective regions to greater fiscal and structural sustainability in particular.

Date: 2025-09-28
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:td7vw_v1

DOI: 10.31219/osf.io/td7vw_v1

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