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Intraregional (Local) Fiscal Decentralization and Investment in Fixed Assets in Russia

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  • E. N. Timushev

    (Institute of Socio-Economic and Energy Problems of the North of the Federal Research Center, Komi Science Center, Ural Branch, Russian Academy of Sciences)

Abstract

— The article shows that the effect of local fiscal decentralization on investment is characterized by an inverted U-shaped relationship. According to data for 2009–2016, the greatest incentives for private investment in the regions of Russia appeared with expenditure and revenue decentralization equal to 33–36%. However, the overall level of investment is higher precisely with revenue decentralization. The loss of private investment due to a lack of local authority could reach 6.5 thousand rubles/person.

Suggested Citation

  • E. N. Timushev, 2021. "Intraregional (Local) Fiscal Decentralization and Investment in Fixed Assets in Russia," Studies on Russian Economic Development, Springer, vol. 32(1), pages 87-97, January.
    • Handle: RePEc:spr:sorede:v:32:y:2021:i:1:d:10.1134_s1075700721010147
    DOI: 10.1134/S1075700721010147
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    References listed on IDEAS

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