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Does Globalization Matter on Fiscal Decentralization? New Evidence from the OECD

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  • Barbara Ermini
  • Raffaella Santolini

Abstract

In this paper, we re-examine the effects of globalization on fiscal decentralization of Organisation for Economic Co-operation and Development (OECD) member countries by using the overall KOF index of globalization and its main subcomponents -- economic, political and social integration. Using different indicators of fiscal decentralization, we find a positive impact of the overall index of globalization on both tax revenue and expenditure decentralization side, although not robust across different panel data specifications. Focusing on the links between decentralization and subcomponents of globalization, we find that both economic and social integration foster fiscal decentralization, whereas political integration inhibits its growth.

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  • Barbara Ermini & Raffaella Santolini, 2014. "Does Globalization Matter on Fiscal Decentralization? New Evidence from the OECD," Global Economic Review, Taylor & Francis Journals, vol. 43(2), pages 153-183, June.
    • Handle: RePEc:taf:glecrv:v:43:y:2014:i:2:p:153-183
    DOI: 10.1080/1226508X.2014.920240
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    Cited by:

    1. Andrea Filippetti & Giovanni Cerulli, 2018. "Are local public services better delivered in more autonomous regions? Evidence from European regions using a dose‐response approach," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 801-826, August.
    2. David Bartolini & Agnese Sacchi & Simone Salotti & Raffaella Santolini, 2018. "Fiscal Decentralization in Times of Financial Crises," CESifo Economic Studies, CESifo Group, vol. 64(3), pages 456-488.
    3. Francisco J. Delgado, 2021. "On the Determinants of Fiscal Decentralization: Evidence From the EU," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 206-206, February.
    4. DUKE Ben, 2014. "‘Small is Beautiful’, Analysing the Democratising Effect of Localism, Greater Regional Autonomy, Decentralisation and Constitutional Reform," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    5. Milan Jílek, 2015. "Factors of Tax Decentralization in OECD-Europe Countries," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2015(2), pages 33-49.
    6. Altu Kazar & G rkemli Kazar, 2016. "Globalization, Financial Development and Economic Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 578-587.

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