scholarly journals The impact of fiscal decentralization on growth, inflation and inequality in the Americas

CEPAL Review ◽  
2018 ◽  
Vol 2018 (124) ◽  
pp. 57-77 ◽  
Author(s):  
Antonio N. Bojanic
Keyword(s):  
Fiscal Decentralization ◽  
The Impact

scholarly journals FISCAL INSTITUTIONS AND THE SIZE AND INTER-REGIONAL DISTRIBUTION OF PUBLIC REDISTRIBUTION

2018 ◽  
Vol 37 (1) ◽  
Author(s):  
Raul A Ponce-Rodriguez ◽  
Juan Medina-Guirado
Keyword(s):  
Fiscal Decentralization ◽  
Regional Distribution ◽  
Revenue Sharing ◽  
Tax Revenue ◽  
Fiscal Institutions ◽  
National Budget ◽  
Public Transfers ◽  
The Government ◽  
The Impact ◽  
Redistribute Income

Abstract Fiscal institutions, which are responsible for the delegation of tax and spending powers among different tiers of governments, are important determinants of the size and efficiency of public redistribution. In this paper we develop a comparative analysis of the impact of fiscal decentralization vis-à-vis tax revenue sharing on the government’s effort to redistribute income. The main findings are: first, the size of the national budget for public redistribution is the same under fiscal decentralization and tax revenue sharing. Second, different fiscal institutions lead to different regional distributions of public transfers. Third, when choosing between decentralization and tax revenue sharing, there is a tradeoff between the efficiency and the regional effort of the government to redistribute income. Resumen Las instituciones fiscales, que determinan la responsabilidad del diseño de impuestos y gasto entre los diferentes niveles de gobierno, son importantes determinantes del tamaño y eficiencia de la redistribución pública. En este artículo, se desarrolla un análisis comparativo del impacto en el esfuerzo del gobierno en redistribuir el ingreso, entre la descentralización fiscal en y una política de compartir el ingreso fiscal. Los principales resultados son: primero, el tamaño del presupuesto en redistribución es el mismo para una economía con descentralización o en la que se comparte el ingreso fiscal. Segundo, las instituciones fiscales implican una asignación diferente en la distribución regional de transferencias públicas. Tercero, al escoger entre descentralización y el compartir el ingreso fiscal, existe un intercambio entre la eficiencia y la distribución regional de las transferencias públicas.

scholarly journals Economic Growth by Means of Fiscal Decentralization: An Empirical Study for Federal Developing Countries

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402096808
Author(s):  
Imran Hanif ◽  
Sally Wallace ◽  
Pilar Gago-de-Santos
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Tax Revenue ◽  
Weak Institutions ◽  
The Impact

The impact of fiscal federalism on economic performance has largely been studied in the developed world since the seminal work of Oates. In this article, we focus on a particular set of developing countries considered to be federal (Forum of Federations), to examine how fiscal decentralization has impacted their economic growth. In this context, we study the impact of tax revenue and expenditure decentralization on economic growth in developing federations. For this purpose, a panel data of 15 developing federations from 2000 to 2015 are analyzed by using a two-step system Generalized Method of Moments (GMM) estimation method. The results show that in federal developing countries, both tax revenue and expenditure decentralization have a significant, positive impact on economic growth. What is more, our findings show that the impact of fiscal decentralization on economic growth depends upon the level of perceived corruption and on the quality of the country’s institutions. Thus, empirical evidence depicts that the positive effect of fiscal decentralization on economic growth is tempered if the country is plagued with corruption, if it has weak institutions, and/or if it suffers from political instability. By contrast, a relatively corruption-free country featuring healthy institutions and a stable political environment could take fuller advantage of the effects of fiscal decentralization to improve economic growth.

THE IMPACT OF FISCAL DECENTRALIZATION AND STATE ALLOCATIVE EFFICIENCY ON REGIONAL GROWTH IN INDONESIA

2010 ◽  
Vol 01 (02) ◽  
pp. 287-307 ◽  
Author(s):  
DARIUS TIRTOSUHARTO
Keyword(s):  
Growth Model ◽  
Fiscal Decentralization ◽  
Regional Growth ◽  
Allocative Efficiency ◽  
Empirical Method ◽  
State Governments ◽  
Incentive Structure ◽  
Panel Data Regression ◽  
Using Data ◽  
The Impact

This paper provides a new empirical analysis on the effects of fiscal decentralization on economic growth with the inclusion of a state allocative efficiency factor in the growth model. Using Indonesia as a case study, this study aims to reveal whether the state allocative efficiency will impact growth through better allocation of public goods. Following a two-stage empirical method, the expenditure efficiency of Indonesia's 26 state governments over a 10-year period (1996–2005) is constructed by using Data Envelopment Analysis (DEA) and a panel data regression is utilized in the growth model. The results indicate that although fiscal decentralization provided a greater incentive structure for state governments to become more efficient in allocating fiscal resources, it did not always lead to robust growth due to rising regional disparities particularly in the level of development and resource capacities.

scholarly journals The impact of fiscal decentralization on economic growth in Indonesia

2019 ◽  
Vol 11 (2) ◽  
pp. 152-160
Author(s):  
Ari Mulianta Ginting ◽  
Muhammad Zilal Hamzah ◽  
Eleonora Sofilda
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
The Impact

scholarly journals The reduction of human development gap in origin and new regency in Eastern Indonesia

2021 ◽  
Vol 4 (1) ◽  
pp. 21
Author(s):  
Jihad Lukis Panjawa ◽  
Bhimo Rizky Samudro
Keyword(s):  
Human Development ◽  
Cross Section ◽  
Human Development Index ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Development Index ◽  
Dummy Variable ◽  
Eastern Indonesia ◽  
The Impact ◽  
Development Gap

Inequality still becomes popular issue in the establishment of developing countries. Aside from the income inequality, the human development inequality is considered as an interesting topic for further study, in terms of resuming the solution. The purpose of this study is considered as specific in identifying the human development gap between origin and new regencies in Eastern Indonesia as well as the determinant. This study uses a positivist perspective with a deductive approach. Secondary data with cross-section types used in this study covers regencies and cities in Eastern Indonesia. This study uses the econometrics methodology using regression analysis with a dummy variable. The results showed there were differences in human development index between origin and new regencies in Eastern Indonesia. The human development index in the new regency is lower than in the origin regency. The results support the Myrdal’s Theory, which explains the gap in human development disparities among regions due to the significant backwash effects. Fiscal decentralization has a role in reducing the gap in human development in origin and new regencies, yet insignificant for the economic growth. Poverty lowers the impact on increasing human development in the origin regencies but does not occur in the new regencies.JEL Classification  H30; I32; O15

scholarly journals The Functionality of Health Facility Governing Committees and Their Associated Factors in Selected Primary Health Facilities Implementing Direct Health Facility Financing in Tanzania

2022 ◽  
Author(s):  
Anosisye Kesale ◽  
Christopher Mahonge ◽  
Mikidadi Muhanga
Keyword(s):  
Community Health ◽  
Health Facility ◽  
Associated Factors ◽  
Fiscal Decentralization ◽  
Health Facilities ◽  
P Value ◽  
Primary Health ◽  
Sampling Procedures ◽  
Primary Health Facilities ◽  
The Impact

Abstract Background: Decentralization has dominated the agenda for the reforms of the organization of service delivery in Lower and Middle-Income Countries (LMICs). Decentralization faces a formidable challenge of fiscal decentralization in primary healthcare facilities. Of now, LMICs are implementing fiscal decentralization reforms to empower health facilities and their Health Facility Governing Committees (HFGCs). Given the paucity of the impact of fiscal decentralization, this study was conducted to assess the functionality of HFGCs and their associative factors in primary health care facilities implementing fiscal decentralization through Direct Health Facility Financing (DHFF) in Tanzania.Methods: A cross-sectional design was employed to gather both qualitative and quantitative data. The study was conducted in 32 selected primary health facilities implementing DHFF in Tanzania. Probability and nonprobability sampling procedures were employed, in which a multistage sampling procedure was used to select 280 respondents. Data were collected through a structured questionnaire, in-depth interviews and focus group discussions. Descriptive analysis was employed to determine the functionality of HFGCs and binary logistic regression was employed to determine associated factors for the functionality of HFGC. Qualitative analysis was done through thematic analysis.Result: HFGC functionality under DHFF has been found to be good by 78.57%. Specifically, HFGCs have been found to have good functionality in mobilizing communities to join Community Health Funds 87.14%, participating in the procurement process 85%, discussing community health challenges 81.43% and planning and budgeting 80%. The functionality of HFGCs has been found to be associated with the planning and budgeting aspects p-value of 0.0011, procurement aspects p-value 0.0331, availability of information reports p-value 0.0007 and Contesting for HFGC position p-value 0.0187.Conclusion: The study has revealed that fiscal decentralization through DHFF significantly improves the functionality of HFGCs. Therefore, the study recommends more effort be put into facilitating the availability of finances to the health facilities.

scholarly journals Vertical Fiscal Imbalance and Regional Economic Growth

2020 ◽  
Vol 12 (6) ◽  
pp. 39-53
Author(s):  
B.I. Alekhin ◽  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
Fiscal Imbalance ◽  
Vertical Fiscal Imbalance ◽  
The Impact

This study examines the impact of fiscal decentralization on regional economic growth using panel data for 82 subjects of the Russian Federation for the period 2005-2018. General theoretical framework was drawn from the second-generation theory of fiscal federalism, and panel data econometrics suggested the appropriate empirical model and estimation method. The pooled mean group method was used to estimate an autoregressive distributed lags model based on Solow-Swan theory of economic growth. The results indicate that vertical fiscal gap has a negative and significant long-term impact on regional economic growth while vertical fiscal imbalance has a positive and significant long-term effect. The study is consistent with the modern theory of fiscal federalism, W.E. Oates’ matching hypothesis and previous empirical work using Russian data. The study also found evidence of conditional convergence of regional economies.

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