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Decentralization and the quality of public services: Cross-country evidence from educational data

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  • Luis Diaz-Serrano
  • Enric Meix-Llop

Abstract

In this paper, we study the impact of fiscal and political decentralization on the quality of public service delivery. While the effect of fiscal decentralization on public services is a recursive theme, to the best of our knowledge, our study is the first to investigate the impact of political decentralization. We use educational data as a proxy for the quality of public services. We use microdata from the Programme for International Student Assessment (PISA) test scores from 22 countries and test for the impact of fiscal and political decentralization on students’ performance. We use not only general measures of decentralization but, for the first time, also education-specific decentralization measures. Our results indicate that the impact of fiscal decentralization on school outcomes is positive. However, the results regarding political decentralization are more ambiguous. We also observe that the scalar effect of both political and economic decentralization becomes more evident in large cities.

Suggested Citation

  • Luis Diaz-Serrano & Enric Meix-Llop, 2019. "Decentralization and the quality of public services: Cross-country evidence from educational data," Environment and Planning C, , vol. 37(7), pages 1296-1316, November.
    • Handle: RePEc:sae:envirc:v:37:y:2019:i:7:p:1296-1316
    DOI: 10.1177/2399654418824602
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    3. Julien Jacqmin & Mathieu Lefebvre, 2021. "Fiscal decentralization and the performance of higher education institutions: the case of Europe," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 743-758, August.
    4. Elacqua, Gregory & Munevar, Isabela & Sanchez, Fabio & Santos, Humberto, 2021. "The impact of decentralized decision-making on student outcomes and teacher quality: Evidence from Colombia," World Development, Elsevier, vol. 141(C).
    5. Tongtong Li & Xinrui Fang & Jiaqi Zhu & Qianliu Peng & Wenyu Zhao & Xin Fu, 2024. "Horizontal and Vertical Spatial Equity Analysis Based on Accessibility to Living Service Amenities: A Case Study of Xi’an, China," Land, MDPI, vol. 13(8), pages 1-30, July.
    6. Mingyuan Chang & Longyang Huang & Tianlin Zhai & Jiawei Zhu & Yuanbo Ma & Ling Li & Chenchen Zhao, 2023. "A Challenge of Sustainable Urbanization: Mapping the Equity of Urban Public Facilities in Multiple Dimensions in Zhengzhou, China," Land, MDPI, vol. 12(8), pages 1-22, August.
    7. Pu, Xiaohong & Zeng, Ming & Zhang, Weike, 2023. "Corporate sustainable development driven by high-quality innovation: Does fiscal decentralization really matter?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 273-289.
    8. Yu Wang & Jingqian Li, 2024. "How Public Service Investment Affects Public Incomes: Evidence from Shanghai, China," Sustainability, MDPI, vol. 16(13), pages 1-20, June.

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