Misallocation of factors production has been recently viewed as a promising explanation accounting for the large difference in total factor productivity (TFP) across countries. This article differs from previous studies by concentrating on interregional capital misallocation and focusing role fiscal decentralization shaping misallocation. Using city level panel data set, we measure intra-provin...

This paper examines the mediating effect of democracy in explaining relationship between decentralization and government size for period 1970–2013. We proxy by fiscal decentralization, use total spending as our primary measure adopt V-Dem high-level indices measures democracy. Our main finding is that differs under different types From interaction term, negative diminishes level gets higher, pa...