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Fiscal and Political Decentralization and Government Quality

Andreas P. Kyriacoua () and Oriol Roca-Sagalésb
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Andreas P. Kyriacoua: Departament d’Economia, Universitat de Girona
Oriol Roca-Sagalésb: Departament d’Economia Aplicada, Universitat Autònoma de Barcelona

Authors registered in the RePEc Author Service: Andreas P Kyriacou and Oriol Roca-Sagalés

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: In this paper we apply both cross-section and panel analysis to the relationship between fiscal and political decentralization and government quality. We find that fiscal decentralization has a positive impact. Moreover, political decentralization tends to reduce the positive impact of fiscal decentralization on the quality of government. This negative impact of political decentralization on government quality persists when controlling for the degree of democratic maturity of countries but disappears when controlling for the extent of experience with statehood or public administration. This suggests that it is more affordable, in terms of government quality, to combine fiscal and political decentralization in countries with a long history of statehood.

Keywords: Quality of government; fiscal decentralization; political decentralization; democratic maturity; cross-section and panel data (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010-02-01
New Economics Papers: this item is included in nep-cdm, nep-pbe and nep-pol
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Citations: View citations in EconPapers (2)

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http://icepp.gsu.edu/files/2015/03/ispwp1005.pdf (application/pdf)

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Journal Article: Fiscal and Political Decentralization and Government Quality (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper1005

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