Does fiscal decentralization result in a better business climate?

Partial fiscal decentralization

The fiscal decentralization impulse now sweeping the world often leads to partial decentralization, where subnational governments are funded by central transfers, rather than leading to full local autonomy. Despite the practical important of this arrangement, the literature contains no economic analysis of a partial decentralization regime in a Tiebout-style model. This paper provides such an a...

Worldwide Trends in Fiscal Decentralization*

What is the best arrangement of fiscal powers and responsibilities between the different levels of government? This is a question at the center of policy debate in countries around the world (Bird, 1993). It is not an issue restricted to big countries, as many believe. Though it is an important concern in China and the United States, it is also under study in Nicaragua and the Baltics. Nor is i...

Globalization and Fiscal Decentralization

The international integration of markets and the decentralization of authority within nation states are two defining trends of the contemporary era. A popular speculation is that globalization has caused a downward shift in the locus of governance by reducing the economic costs of smallness and allowing localities and regions with distinctive preferences to pursue their own political and econom...

Fiscal Decentralization in Asia Revisited

There has been growing interest in fiscal decentralization in many developed and developing nations. There seem to be both (i) economic and (ii) political motives behind. Fiscal decentralization can be a way to cope with restructuring public sectors: it is expected to improving efficiency of public sector. Also, delegating power to a lower level government will make public policy more accountab...

Implementation Rules for Fiscal Decentralization