The empirical evidence on the determinants of fiscal decentralization

Antonio Bojanic

Revista Finanzas y Politica Economica, 2020, vol. 12, issue 1, 271-302

Abstract: This paper analyzes the main determinants of fiscal decentralization in a sample of eighty-four countries. Theempirical findings show that the most consistent variable affecting fiscal decentralization is the size of a country: as land size increases, the level of fiscal decentralization increases as well. Countries with higher income equality, an educated population, more democratic, more urbanized and open to trade are also more likely to be more decentralized, though the findings demonstrate that there are regional and income variations. The most important policy implication is that governments interested in deepening the devolutionof fiscal responsibilities to sub-national levels may consider acting to affect those variables that have been shown to exert a positive influence on this process.

Keywords: fiscal decentralization; federalism; regional autonomy. (search for similar items in EconPapers)
JEL-codes: H10 H21 H50 H77 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000443:018479

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