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Fiscal federalism and government size in transition economies: the case of Moldova

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  • Luiz De Mello

    (International Monetary Fund, Washington DC, USA)

Abstract

This paper examines the relationship between fiscal decentralization-the assignment of revenue sources and expenditure functions across government levels-and government size in Moldova. The empirical results-based on data for a cross-section of Moldovan sub-national government in 1998-suggest that fiscal decentralization is associated with larger sub-national governments and that the country's revenue-sharing system imposes a constraint on sub-national revenue mobilization capacity. Copyright © 2001 John Wiley & Sons, Ltd.

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  • Luiz De Mello, 2001. "Fiscal federalism and government size in transition economies: the case of Moldova," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 255-268.
    • Handle: RePEc:wly:jintdv:v:13:y:2001:i:2:p:255-268
    DOI: 10.1002/jid.763
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    Cited by:

    1. Lars Feld, 2014. "James Buchanan’s theory of federalism: from fiscal equity to the ideal political order," Constitutional Political Economy, Springer, vol. 25(3), pages 231-252, September.
    2. Jungbu Kim, 2010. "Political Institutions and Public R&D Expenditures in Democratic Countries," Working Papers EMS_2010_16, Research Institute, International University of Japan.
    3. Serhan Cevik, 2017. "Size matters: fragmentation and vertical fiscal imbalances in Moldova," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(2), pages 367-381, May.
    4. Paolo Liberati & Agnese Sacchi, 2013. "Tax decentralization and local government size," Public Choice, Springer, vol. 157(1), pages 183-205, October.
    5. David Cantarero & Patricio Perez, 2012. "Decentralization and regional government size in Spain," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 11(3), pages 211-237, December.
    6. Zhu, Z. & Krug, B., 2005. "Is China a Leviathan?," ERIM Report Series Research in Management ERS-2004-103-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Mr. Serhan Cevik, 2014. "Fragmentation and Vertical Fiscal Imbalances Lessons from Moldova," IMF Working Papers 2014/233, International Monetary Fund.

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