IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v15y2022i12p584-d995499.html
   My bibliography  Save this article

Old but Resilient Story: Impact of Decentralization on Social Welfare

Author

Listed:
  • José Luis Alberto Delgado

    (Faculty of Economics, İstanbul University, Beyazıt Kampüs, 34126 Istanbul, Türkiye)

  • Dilek Demirbaş

    (Faculty of Economics, İstanbul University, Beyazıt Kampüs, 34126 Istanbul, Türkiye)

  • Ahmet Faruk Aysan

    (College of Islamic Studies, Hamad Bin Khalifa University, Doha P.O. Box 34110, Qatar)

Abstract

This paper analyzes the fiscal performance of Turkey and Argentina during the period 2000–2021, when both countries faced rapid economic growth with the consequent impact on social welfare. This work explored two different systems: Centralization in Turkey and Federalism in Argentina and, in general, studied the decentralization impact of both the systems on social welfare. This study intended to create new social welfare indexes in other regions to analyze the resource allocation in different regions of these countries. As a first step, we built a regional human development index (HDI) for each region. This attempt is considered a new contribution to the literature and intended to fill the gap in this field. Afterward, this index was compared with the fiscal resources allocation (FRA), used as a proxy of fiscal decentralization in an econometric panel data model. By using this method, we concluded that the social welfare indexes have a positive relationship with the fiscal resource allocation in the Federal system, such as in Argentina, but not in the centralized system such as in Turkey during the period analyzed from 2000 to 2020.

Suggested Citation

  • José Luis Alberto Delgado & Dilek Demirbaş & Ahmet Faruk Aysan, 2022. "Old but Resilient Story: Impact of Decentralization on Social Welfare," JRFM, MDPI, vol. 15(12), pages 1-19, December.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:12:p:584-:d:995499
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/15/12/584/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/15/12/584/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aslim, Erkmen Giray & Neyapti, Bilin, 2017. "Optimal fiscal decentralization: Redistribution and welfare implications," Economic Modelling, Elsevier, vol. 61(C), pages 224-234.
    2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    3. Ostrom, Vincent & Tiebout, Charles M. & Warren, Robert, 1961. "The Organization of Government in Metropolitan Areas: A Theoretical Inquiry," American Political Science Review, Cambridge University Press, vol. 55(4), pages 831-842, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aysan, Ahmet Faruk & Babacan, Mehmet & Gür, Nurullah & Süleyman, Selim, 2023. "Firm Size and Financing Behavior during the COVID-19 Pandemic: Evidence from SMEs in Istanbul," MPRA Paper 116300, University Library of Munich, Germany, revised 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deller, Steven C. & Hinds, David G. & Hinman, Donald L., 2001. "Local Public Services In Wisconsin: Alternatives For Municipalities With A Focus On Privatization," Staff Papers 12658, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    2. Tavares Antonio F., 2018. "Municipal amalgamations and their effects: a literature review," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 22(1), pages 5-15, March.
    3. Mark Schneider & Byung Ji, 1987. "The flypaper effect and competition in the local market for public goods," Public Choice, Springer, vol. 54(1), pages 27-39, January.
    4. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    5. Peter J. Boettke & Liya Palagashvili, 2015. "Taming Leviathan," Supreme Court Economic Review, University of Chicago Press, vol. 23(1), pages 279-303.
    6. Mark Koyama, 2012. "Prosecution Associations in Industrial Revolution England: Private Providers of Public Goods?," The Journal of Legal Studies, University of Chicago Press, vol. 41(1), pages 95-130.
    7. repec:wly:soecon:v:80:4:y:2014:p:926-937 is not listed on IDEAS
    8. Peter Boettke & Christopher Coyne & Peter Leeson, 2011. "Quasimarket failure," Public Choice, Springer, vol. 149(1), pages 209-224, October.
    9. Scott L. Minkoff, 2009. "Minding Your Neighborhood: The Spatial Context of Local Redistribution," Social Science Quarterly, Southwestern Social Science Association, vol. 90(3), pages 516-537, September.
    10. Liesbet Hooghe, Gary Marks, 2002. "Types of Multi-Level Governance," Les Cahiers européens de Sciences Po 3, Centre d'études européennes (CEE) at Sciences Po, Paris.
    11. Trent J. MacDonald, 2019. "The Political Economy of Non-Territorial Exit," Books, Edward Elgar Publishing, number 18871.
    12. Ahmet Faruk Aysan & Dilek Demirbaş & José Luis Alberto Delgado, 2022. "Old But Resilient Story: Impact Of Decentralization On Social Welfare," Working Papers hal-03866662, HAL.
    13. Dennis A. Rondinelli & James S. McCullough & Ronald W. Johnson, 1989. "Analysing Decentralization Policies in Developing Countries: a Political‐Economy Framework," Development and Change, International Institute of Social Studies, vol. 20(1), pages 57-87, January.
    14. Maxime Desmarais-Tremblay, 2014. "On the Definition of Public Goods. Assessing Richard A. Musgrave's contribution," Documents de travail du Centre d'Economie de la Sorbonne 14004, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    15. Halstead, John M. & Hallas-Burt, Shanna & Huang, Ju-Chin, 2004. "Alternatives For Financing Municipal Services: The Case Of Unit-Priced Trash Disposal," 2004 Annual meeting, August 1-4, Denver, CO 19953, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Agustin Leon-Moreta, 2015. "Municipal incorporation in the United States," Urban Studies, Urban Studies Journal Limited, vol. 52(16), pages 3160-3180, December.
    17. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(2), pages 91-115, April.
    18. Matthew Lee Howell, 2014. "The Logic of Urban Fragmentation: Organisational Ecology and the Proliferation of American Cities," Urban Studies, Urban Studies Journal Limited, vol. 51(5), pages 899-916, April.
    19. Andrew Macintosh, 2013. "Coastal climate hazards and urban planning: how planning responses can lead to maladaptation," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(7), pages 1035-1055, October.
    20. Ahrend, Rudiger & Farchy, Emily & Kaplanis, Ioannis & Lembcke, Alexander C., 2016. "What Makes Cities More Productive? Evidence from 5 OECD Countries on the Role of Urban Governance," Beiträge zur Jahrestagung 2016 (Witten/Herdecke) 175187, Verein für Socialpolitik, Ausschuss für Wirtschaftssysteme und Institutionenökonomik.
    21. Yu, Huayi & Hou, Yujuan, 2021. "A tale of two districts: The impact of district consolidation on property values in Shanghai," Regional Science and Urban Economics, Elsevier, vol. 87(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:15:y:2022:i:12:p:584-:d:995499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.