Resource title

Economic Integration and Fiscal Decentralization: Evidence from OECD Countries

Resource image

image for OpenScout resource :: Economic Integration and Fiscal Decentralization: Evidence from OECD Countries

Resource description

Drawing on recent work on the creation and breakup of countries, this paper examines the impact of economic and political integration on the vertical government structure. It argues that by increasing the market size and the benefits from the decentralized provision of public goods, integration might have triggered the recent process of fiscal decentralization in OECD countries. Based on a theoretical framework, the empirical panel analysis relates the degree of public sector decentralization to economic and European integration, controlling for inter-regional heterogeneity, economies of scale, and institutions. The results found mostly support a decentralizing effect of economic and European integration, particularly in the context of preference heterogeneity, whereas participation of sub-national governments in central decision-making is associated with increasing centralization.

Resource author

Dan Stegarescu

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24093

Resource license

Adapt according to the presented license agreement and reference the original author.