Decentralization and Economic Growth: Specification, Measurement, and Direction of Causal Relationship

Boris Morozov

International Journal of Public Administration, 2018, vol. 41, issue 9, 684-699

Abstract: The concept of decentralization has attracted the attention of scholars and policy makers alike for number of decades. Yet, there still remains a significant amount of confusion over its measurement and its contribution to an economy. Current literature on decentralization is characterized by the multitude of conflicting definitions and measurement instruments. Current literature on the relationship of decentralization and economic growth is also mixed. This article builds on the existing literature and develops a decentralization index that includes its most frequently mentioned dimensions. We find that our newly developed index captures decentralization concept better than other tools and that there is no significant relationship between decentralization and economic growth.

Date: 2018
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DOI: 10.1080/01900692.2017.1296864

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