Fiscal descentralization and the quality of government: evidence from panel data

Andreas Kyriacou and Oriol Roca-Sagalés

Hacienda Pública Española / Review of Public Economics, 2009, vol. 189, issue 2, 131-155

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.

Keywords: Quality of government; fiscal decentralization; political decentralization; panel data (search for similar items in EconPapers)
JEL-codes: H11 H77 K42 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (10)

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