Empirical evidence on the role of fiscal autonomy in regional economic growth Cover Image

Evidencë empirike mbi rolin e autonomisë fiskale në rritjen ekonomike rajonale
Empirical evidence on the role of fiscal autonomy in regional economic growth

Author(s): Eniel NINKA
Subject(s): National Economy, Financial Markets, Fiscal Politics / Budgeting, Socio-Economic Research
Published by: Shtëpia botuese “UET Press”
Keywords: fiscal decentralization; political decentralization; administrative decentralization; regional economic growth; Organization for Economic Cooperation and Development;

Summary/Abstract: The pursuit of a greater economic efficiency and growth has been the driving factor of the recent wave of fiscal decentralization. Indeed, greater resources and powers are being transfered to subnational levels of government with the precise aim of improving the economic performance, both at the local and the national level. This paper offers an overview of the literature that has looked into the economic returns of fiscal decentralization. It comes out that the empirical evidence on the fiscal autonomy–economic growth relationship has often resulted in divergent results. In fact, the debate among economists whether the fiscal decentralization is good or bad for the economic growth is far from being settled. In this paper we use different indicators of fiscal, political and administrative decentralization and measure their autonomous impact and the impact that derives from their interaction on the regional economic growth. Using a sample of OECD regions we find that the delegation of policy responsibility and deconcentration of administrative competences may be harmful for regional economic growth. However, if we consider only federal countries, the impact on economic growth appears to be positive and significant.

  • Issue Year: 12/2015
  • Issue No: 1
  • Page Range: 116-122
  • Page Count: 7
  • Language: Albanian