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Regional Economic Disparities and Decentralisation

Author

Listed:
  • Carlos Gil Canaleta

    (Departamento de Economía, Campus de Arrosadia, Universidad Publica de Navarra, 31006 Pamplona, Spain, cargil@unavarra.es)

  • Pedro Pascual Arzoz

    (Departamento de Economía, Campus de Arrosadia, Universidad Publica de Navarra, 31006 Pamplona, Spain, ppascual@ureavarra.es)

  • Manuel Rapun Garate

    (Departamento de Economía, Campus de Arrosadia, Universidad Publica de Navarra, 31006 Pamplona, Spain, mrapunccbunavarra.es)

Abstract

The study of the influence of decentralisation on economic growth has received some attention in recent years, but very few studies deal with its impact on regional inequalities. This paper analyses the impact of both fiscal and political decentralisation on regional inequalities using alternative measures for a sample of 17 OECD countries. In order to check for other possible influences, the study also includes measures of public-sector size and the type of party in government. The final section studies the relevance of fiscal decentralisation in the regional convergence process observed by several authors during the past two decades. The research reveals a strong negative correlation between decentralisation, especially fiscal decentralisation, and regional inequalities, and also a positive influence of decentralisation on regional convergence.

Suggested Citation

  • Carlos Gil Canaleta & Pedro Pascual Arzoz & Manuel Rapun Garate, 2004. "Regional Economic Disparities and Decentralisation," Urban Studies, Urban Studies Journal Limited, vol. 41(1), pages 71-94, January.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:1:p:71-94
    DOI: 10.1080/0042098032000155696
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    References listed on IDEAS

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    1. Dotti, Nicola Francesco, 2018. "Knowledge that matters for the ‘survival of unfittest’: The case of the new Brussels' rail junction," Transport Policy, Elsevier, vol. 63(C), pages 131-140.
    2. Lessmann, Christian, 2013. "Foreign direct investment and regional inequality: A panel data analysis," China Economic Review, Elsevier, vol. 24(C), pages 129-149.
    3. Christian Lessmann, 2012. "Regional Inequality and Decentralization: An Empirical Analysis," Environment and Planning A, , vol. 44(6), pages 1363-1388, June.
    4. Díaz Serrano, Lluís & Rodríguez Pose, Andrés, 2011. "Decentralization, happiness and the perception of institutions," Working Papers 2072/151812, Universitat Rovira i Virgili, Department of Economics.
    5. Tarkan Cavusoglu & Oguzhan Dincer, 2015. "Does decentralization reduce income inequality? Only in rich states," Southern Economic Journal, Southern Economic Association, vol. 82(1), pages 285-306, July.
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    7. Euijune Kim & Yasir Niti Samudro, 2017. "The impact of intergovernmental transfer funds on interregional income disparity in Indonesia," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 21(1), pages 22-40, January.

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