Can Fiscal Decentralization Strengthen Social Capital?

International Monetary Fund

No 2000/129, IMF Working Papers from International Monetary Fund

Abstract: Countries where social and political institutions stimulate interpersonal trust, civic cooperation, and social cohesiveness tend to have more efficient governments, better governance systems, and faster growth. This paper provides cross-country evidence, based on a sample of developing and developed countries, that fiscal decentralization—the assignment of expenditure functions and revenue sources to lower levels of government—can boost social capital and therefore be integrated into second-generation reforms.

Keywords: WP; decentralization; decentralization indicator; governance; fiscal decentralization; expenditure share; fiscal federalism; social capital; civic cooperation; community member; Macro-fiscal analysis (search for similar items in EconPapers)
Pages: 30
Date: 2000-07-01
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Citations: View citations in EconPapers (19)

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