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- Title
The Effect of Fiscal Decentralization on The Human Development Index and Its Components: A Panel Data Study.
- Authors
TÜMAY, Muhammed
- Abstract
Most countries worldwide in recent decades, particularly developing and transition countries, have implemented decentralization in their governance structures. The main purpose of decentralization is the idea that local government can deliver local needs and preferences to their communities more accurately. However, some researchers argue that decentralization has its limitations and point out an optimal fiscal decentralization size. This paper investigates the effect of fiscal decentralization on the human development index and its components by using panel data between the period 2000 to 2010 from 49 countries. Using robust OLS and Fixed Effect methods, results suggest that the revenue measure of fiscal decentralization has a significant and positive effect on the human development index. Furthermore, results show that this effect is nonlinear may diminish once the degree of fiscal decentralization crosses a threshold.
- Subjects
PANEL analysis; DECENTRALIZATION in government; HUMAN Development Index; LOCAL government
- Publication
Uluslararasi Ekonomi ve Yenilik Dergisi, 2021, Vol 7, Issue 2, p357
- ISSN
2149-6838
- Publication type
Article
- DOI
10.20979/ueyd.954645