The impact of fiscal decentralization on economic growth: A comparative analysis of selected African and OECD countries.

ABSTRACT: Fiscal decentralization, widely believed to be one essential tool to boost economic growth, is typically presented as something that works for developed countries. However, this needs to be investigated, which is what this paper aims to do. This paper investigates the relationship between fiscal decentralization and economic growth, specifically focusing on its applicability in both developed and developing countries. Using cross-sectional data from 23 African and 23 OECD countries, we employ two-stage estimation methods, including two-stage least squares (2SLS), Generalized Method of Moments (GMM), and Limited Information Maximum Likelihood (LIML), to address concerns related to endogeneity. The inclusion of instruments representing country size, ethnoreligious diversity, and administrati

SUBMITTER: Sima M 

PROVIDER: S-EPMC10558754 | biostudies-literature | 2023 Sep

REPOSITORIES: biostudies-literature