Fiscal decentralization and the poor (original) (raw)
Related papers
Does Fiscal Decentralization Affect Poverty? An Empirical Study
Economics Development Analysis Journal
The Poverty percentage in Central Java ranked two throughout Java Island after DI Yogyakarta Province. It surely causes gaps and inequality between regions in Central Java Province. This study attempted to analyze the effects of fiscal decentralization, fiscal balance fund, and economic growth on the poverty in 35 regencies/ cities in Central Java Province within 2016-2020. By using a quantitative approach, this study used a panel analysis with a Fixed Effect Model (FEM) method. Based on the results of panel data regression analysis results, fiscal decentralization and fiscal balance fund had no relationship with the poverty in Central Java. On the other hand, economic growth had positive and significant effects. High economic growth will reduce poverty rate when the economic activities carried out are padat karya which aims at absorbing workforce. High workforce absorption will reduce the poverty rate.
Fiscal Decentralization and Governance
Public Finance Review, 2012
The literature on the economics of fiscal decentralization stresses the potential for both positive and negative effects on governance in a country. Using a data set comprising sixty-four developed and developing economies and several different measures of fiscal decentralization, the authors find that countries in which a larger share of fiscal revenues and expenditures are located at the level of subnational governments appear to be less corrupt. The authors also find that the beneficial impact of fiscal decentralization on corruption is mitigated in the presence of mechanisms enforcing vertical administrative decentralization. The results indicate that fiscal decentralization appears to reduce corruption even in countries in which there is a high degree of political representation. The results are robust to alternative estimation methodologies and to specifications that control for the influence of variables that have been identified as affecting governance.
On the Measurement and Impact of Fiscal Decentralization
2002
The typical post-Bretton Woods era development approach that put much emphasis on central government-led development efforts has changed dramatically, and local governments have now clearly emerged as players in development policy. Now, the thinking about what is important to achieve development objectives is changing and many countries around the world are now pursuing fiscal decentralization reforms. Within this context a number of studies attempted to quantify the impact of decentralization by relating some measure of decentralization to the economic outcomes of fiscal stability, economic growth, and public sector size. However, decentralization is surprisingly difficult to measure. In nearly all cases those examining the relationship between decentralization and macroeconomic performance have relied on the Government Finance Statistics (GFS) of the IMF. However, despite its many merits, GFS falls short of providing a full picture of fiscal decentralization. For some countries, however, data that more accurately capture fiscal responsibilities among different types of governments are available.
Decentralization in developing countries : global perspectives on the obstacles to fiscal devolution
2011
Contents: 1. An Overview of the Main Obstacles to Decentralization Jorge Martinez-Vazquez and Francois Vaillancourt 2. Conceptual Problems in the Assignment of Functions in SEE: The Case of Albania Bernard Dafflon 3. Decentralization in the Post-Conflict African Environment: Sierra Leone and Southern Sudan Bob Searle 4. Challenge to Intergovernmental Fiscal Relations in Pakistan: The Revenue Assignment Dimension Roy Bahl, Musharraf Cyan and Sally Wallace 5. Constraints to Effective Fiscal Decentralization in Peru Ehtisham Ahmad and Mercedes Garcia-Escribano 6. Reigning in Provincial Fiscal 'Owners': Decentralization in Lao P.D.R. Juan Luis Gomez, Jorge Martinez-Vazquez and Cristian Sepulveda 7. Decentralization in Bangladesh: Change has been Illusive William F. Fox and Balakrishna Menon 8. The Political-Economy of Decentralization in the Democratic Republic of Congo (DRC) Kai Kaiser, Jean Mabi Mulumba and Tony Verheijen 9. Decentralization in Burkina Faso: The Slow March tow...
International Journal of Economics and Innovation, 2021
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.
Poverty Alleviation under Fiscal Decentralization
Over the years considerable progress has been made in designing and implementing policies and in building appropriate structures of incentives and institutions to combat poverty. Yet, almost a billion people in the world continue to be in abject poverty. They can not afford minimum requirements of food, clothing, shelter, and education and health facilities. Majority of the poor in live in less developed countries of Sout h Asia, sub-Saharan Africa and Latin America. Therefore, nature and causes of poverty and interventions to improve the living conditions of poor continue to be a matter of concern and a priority area of research. While our understanding of this problem today is significantly better than what it was thirty years ago, there is no doubt that much more remains to be done to evolve effective policies and institutions and find more effective ways of implementing the to combat this multifaceted problem.
Fiscal Decentralization and its Effect on Poverty Alleviation: Case Study of Indonesia
Bulletin of Islamic Economics
This research provides empirical evidence of the effect of fiscal decentralization on poverty alleviation and used data from 505 districts/cities in Indonesia from 2010 to 2019. The poverty rate is used as an indicator to measure the social condition of the area with the parameter of the percentage of the total population below the poverty line, while the fiscal decentralization indicator uses approach to the size of the ratio of PAD to total regional income and expenditure. The estimated results used the fixed effect model shows that fiscal decentralization have significant role to reduce the level of poverty in districts/cities nationally. From this estimation result, the recommended policy formulation is pro-poor fiscal decentralization through strengthening regional financial capacity, both optimizing Original Local Government Revenue (PAD), allocating Transfer Funds to Regions that are specific grants, improving the quality of spending and regional financial management, as well...