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Forms of Government Decentralization and Institutional Quality: Evidence from a Large Sample of Nation

Rajeev Goel and James Saunoris

No 562, ADBI Working Papers from Asian Development Bank Institute

Abstract: This paper studies the effects of various forms of government decentralization on institutional quality across countries. Using corruption and the shadow economy to proxy for institutional quality, as well as three forms of government decentralization (i.e., virtual, physical, and fiscal), the econometric results show virtual decentralization to be the most effective in improving institutional quality. The effects on transition and countries in Asia are also considered.

Keywords: government decentralization; shadow economy; institutional quality; virtual decentralization (search for similar items in EconPapers)
JEL-codes: H11 H73 K42 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2016-03-31
New Economics Papers: this item is included in nep-ict, nep-iue, nep-law and nep-sea
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