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Fiscal Federalism in Transition: Evidence from Ukraine

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  • Ulrich Thießen

Abstract

Effects of fiscal federalism on redistribution and economic growth are analyzed for Ukraine, a country with large regional differences. Since there is virtually no such empirical literature, except a study of the German case, and since there are several potential flaws, the results must be interpreted in a very tentative way. We find that this relatively poor, disorganized country with little democracy has effectively redistributed income from relatively wealthy to relatively poor regions and thus promoted regional economic convergence, and even dampened the recession in both types of regions. We also find that the evidence does not reject the view that relatively poor regions used the transfers in a growth-conducive fashion, and the paper argues that the findings may have implications beyond the case of Ukraine. But the analysis is tricky, uncertain, and merely a small step to an interesting research issue. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Ulrich Thießen, 2004. "Fiscal Federalism in Transition: Evidence from Ukraine," Economic Change and Restructuring, Springer, vol. 37(1), pages 1-23, March.
    • Handle: RePEc:kap:ecopln:v:37:y:2004:i:1:p:1-23
    DOI: 10.1007/s10644-004-1055-3
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    1. Mariano Tommasi & Sebastian Saiegh & Pablo Sanguinetti, 2001. "Fiscal Federalism in Argentina: Policies, Politics, and Institutional Reform," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 157-212, January.
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    Cited by:

    1. Olga Kupets, 2012. "Characteristics and Determinants of Internal Labor Mobility in Ukraine," World Bank Publications - Reports 26804, The World Bank Group.
    2. Boriss Siliverstovs & Ulrich Thiessen & Caroline Elliott, 2015. "Incentive effects of fiscal federalism: Evidence for France," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1017949-101, December.

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    Keywords

    fiscal equalization; fiscal federalism;

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