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"FISCAL DECENTRALIZATION"
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Fiscal Decentralization and the Human Development Index: A Cross-Border Empirical Study
Many countries have implemented fiscal decentralization reform in recent decades, which has had a profound impact on their national development. The aim of this paper is to study the relationship between fiscal decentralization and national development. To achieve this goal, we validated our proposition with panel data of 50 countries covering the period of 1991–2020 and used IV estimation to correct any potential endogeneity, with the Geographic Fragmentation Index as an instrumental variable. We used the Human Development Index (HDI) to measure the level of national development, as it is a composite index that includes the three dimensions of economy, education, and health. The results show that there is a significant hump-shaped relationship between fiscal decentralization and the HDI. This result was robust when it was tested on an alternative sample covering the period of 2010–2021. The policy implication determined here is that governments should choose a moderate degree of fiscal decentralization in order to promote national development. We also discuss how to determine such a moderate degree of fiscal decentralization.
Journal Article
Amalgamation and Local Finance: A Case Study of Ukraine
Purpose: The article aims to measure the impact of the voluntary amalgamation approach applied in Ukraine in the course of the decentralization reforms undertaken over a period of five years, and assess how much these reforms have been successful in improving the local government fiscal situation. Ukraine began a long-delayed decentralization process in 2015 through amalgamation based on a voluntary approach, with an emphasis on improving the fiscal resources of the amalgamated units. The decentralization reform was based on three pillars: (1) voluntary amalgamation of the territorial units, (2) enhanced financial resources through own source revenues and infrastructure grants, and (3) utilization of inter-municipal cooperation to support improved service delivery.Methodology: A time series of fiscal data from amalgamated territorial communities in selected regions of Ukraine have been analysed to measure the impact of the amalgamation policy on the amalgamated territorial units.Findings: The fiscal improvements anticipated by the amalgamated territorial units have not been demonstrated by the statistical data analysis and no significant improvement in local government finances appears to have been realized through the application of a voluntary merging approach. There have been significant regional and urban/rural variations based on the population segments and access to financial resources.Academic contribution to the field: While there has been considerable research on the impact of merging or amalgamating local governments, there has been very little, if any, on the voluntary approach to amalgamation.The study seeks to address this problem and present evidence of the advantage of utilizing a voluntary over a mandatory approach to amalgamation.Significance: The study provides a unique opportunity to measure the impact of amalgamation process in Ukraine over a five-year period based on the voluntary approach to amalgamation and determine how much this approach and the accompanying policies have been successful in improving the local government fiscal situation.
Journal Article
Social sector in a decentralised economy : India in the era of globalisation
\"\"Provides critical insights into the effectiveness of public expenditure through benefit incidence analysis of education and healthcare services in India\"--Provided by publisher\"-- Provided by publisher.
Book
Fiscal decentralization and gender equality: empirical evidence across countries
Globally, over the last few decades, countries have become increasingly decentralized but only recently did they recognize the need for incorporating a gender dimension into such policies. As a result, the relationship between fiscal decentralization, which implies delegating fiscal powers from national to subnational governments, and gender equality remains elusive. In this paper, I study the impact of expenditure decentralization on gender equality using panel data from the Organisation for Economic Co-operation and Development - OECD countries between 2006 and 2021. I find that decentralization of expenditure increases gender equality in these countries. My results also demonstrate that unionization, the extent of a country's integration with the rest of the world, urbanization, population growth, and the state of democracy also matter for gender equality. This suggests that these factors should also accompany expenditure decentralization if the governments of these countries want to further promote gender equality through such public policies.
Journal Article
Responsive states : federalism and American public policy
\"Introduction States as Stakeholders After the November 2016 elections gave the Republican Party unified control over the presidency and both chambers of Congress, its long-standing goal of \"repealing and replacing\" the Patient Protection and Affordable Care Act (ACA) seemed to be well within its reach. The House of Representatives voted to eradicate the central domestic policy accomplishment of the Obama administration in early May, at which point all eyes turned to the Senate. Since Senate Republicans were using the reconciliation process to circumvent the possibility of a Democratic filibuster and held only a 52-48 majority in the chamber, media attention focused on the handful of GOP senators viewed as capable of bucking the party line\"-- Provided by publisher.
Book
Analysis of the Spatial Effect of Fiscal Decentralization and Environmental Decentralization on Carbon Emissions under the Pressure of Officials’ Promotion
Using panel data of 30 provinces and regions in Mainland China (excluding Tibet) from 2006 to 2016, the Spatial Durbin Model was employed for the empirical research, and the spatial impact of fiscal decentralization and environmental decentralization on regional carbon emissions were analyzed from the perspective of promotion pressure of officials. The empirical study concludes: ① Fiscal decentralization, both within the region and in its neighborhood, will contribute to carbon emissions in the region; ② Environmental decentralization will help reduce carbon emissions, while environmental decentralization in neighboring regions will increase carbon emissions in the region; ③ The promotion pressure of officials plays a positive role in moderating the impact of fiscal decentralization on carbon emissions, and at the same time weakens the suppression of carbon emissions by environmental decentralization; ④ From a regional point of view, there is a positive relationship between fiscal decentralization and carbon emissions in various regions; but environmental decentralization has obvious spatial heterogeneity. The research suggests that reducing the degree of local fiscal decentralization, investment in major infrastructure projects involving high carbon emissions should be relatively centralized; appropriately increase the environmental management authority of local environmental protection agencies, fully use the advantages of local environmental protection departments to protect the environment according to local conditions; gradually improve the assessment system for local officials, moderately reduce the proportion of fiscal revenue and GDP assessment in areas with fragile ecological environment, and increase incentives for ecological performance assessment, put the development of low-carbon economy into practice.
Journal Article
Do fiscal decentralization and natural resources rent curb carbon emissions? Evidence from developed countries
This study provides new insight by introducing the role of fiscal decentralization and natural resources rent in affecting CO
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emissions. For assessing this objective, this paper use panel data from seven highly fiscal decentralized Organization for Economic Cooperation and Development (OECD) countries from 1990 to 2018. For empirical analysis, we use the Westerlund test and cross-sectional autoregressive distributive lag model. In order to ascertain the integration order of variables, the study utilizes the Pesaran second-generation unit-root test. The findings reveal that all the variables are stationary at first difference. The long-run results confirm that fiscal decentralization and natural resources rent improve the atmosphere by reducing CO
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emissions. Moreover, gross domestic product and total natural resources rent increase, while improvement in institutional quality reduces CO
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emissions. For policy implication, this study recommends that transferring the power to the local governments will further reduce CO
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emissions and shift these countries to more environmentally friendly sources.
Journal Article
Understanding territorial inequalities in decentralised welfare systems: early childhood education and care system expansion in Croatia
The decentralised provision of social services raises concerns about cn'ailability of sendees in different geographical areas, particularly in low- and middleincome countries with weak governance and fiscal redistributive capacities. Yet the interconnection of different decentralisation regimes and territorial inequalities in the provision of social services remains underexplored. This article engages with one aspect of this puzzle, the implications of the fiscal conditions on exacerbating (or overcoming) territorial inequalities in services provision. Using the Croatian system of early childhood education and care (data for the 2005-2018 period) as an empirical lens, the article shows that in the absence of a well-established policy andfiscal framework sensitive to regional inequalities in administrative and fiscal capacities, decentralised systems can only institutionalise territorial inequalities in services provision. Next to the legal entitlement to a certain service, inter-territorial fiscal equalisation policies are crucial in overcoming fragmentation in social rights along territorial lines.
Journal Article