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Decentralization and Economic Growth

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  • HENRY TEUNE

Abstract

This article addresses the question of whether political decentralization is compatible with economic growth. Although the so-called causes of economic growth are indeterminant, governmental centralization has clearly been associated with it for more than a century in industrialized Western democracies. Arguments have been made for the functions of government in facilitating and integrating national markets. The position of this article is that beginning in the 1960s governmental centralization began to shift its role from a contributing to a dampening factor in the processes of economic growth. In fact most of the Western democracies are attempting to reverse the long-term trend of central governmental concentration, whether or not this fosters economic growth.

Suggested Citation

  • Henry Teune, 1982. "Decentralization and Economic Growth," The ANNALS of the American Academy of Political and Social Science, , vol. 459(1), pages 93-102, January.
  • Handle: RePEc:sae:anname:v:459:y:1982:i:1:p:93-102
    DOI: 10.1177/0002716282459001007
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