Impacts of Fiscal Decentralization and Economic Growth: A Meta-Analysis Approach

Anwer Fadiel Sacheit Albehadili and Lu Xin Hai
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Anwer Fadiel Sacheit Albehadili: Public Administration College, Huazhong University of Science and Technology, Wuhan, China
Lu Xin Hai: Public Administration College, Huazhong University of Science and Technology, Wuhan, China

International Journal of Management Science and Business Administration, 2018, vol. 4, issue 5, 34-43

Abstract: Fiscal decentralization over the past few years remains as a central agenda when it comes to regional development around the world and economic growth. This paper entails both positive and negative effects of fiscal decentralization on economic growth. We analyze 60 estimates from 10 studies that examine the effect of fiscal decentralization on economic growth. Overall studies imply a positive and statistically significant effect, but the individual estimates vary widely. Results also suggest that certain common factors are more conducive to the economic growth. This paper also highlights the inhibitors of economic efficiency at the local governance level and possible solutions to the challenges facing both central and local governments when putting fiscal decentralization into practice. Through the overall review, the measures are suggested that can be put in place to ensure economic efficiency by both central and local governments and enhance the governments response to the needs of its citizens by the use of fiscal decentralization. Considering that there are a number of studies that have quantitatively highlighted the impact of fiscal decentralization on economic growth, this research will offer the overall analysis of the current models, their similarities, and values.

Keywords: Fiscal federalism; Fiscal decentralization; Economic growth; Sub-national government; Autonomy (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijmsba:v:4:y:2018:i:5:p:34-43

DOI: 10.18775/ijmsba.1849-5664-5419.2014.45.1004

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