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Fiscal decentralization and economic growth in Ecuador: Panel data on provincial council and municipalities since a heterodox vision

Author

Listed:
  • Amílcar Marcelo Varela Enríquez

    (Central University of Ecuador / Institute of Higher National Studies, Ecuador)

  • Gustavo Adrián Salazar Espinoza

    (Central University of Ecuador/ National Polytechnic School, Ecuador)

Abstract

The objective of the present investigation tries to determine the nature of relationship between fiscal decentralization and economic growth for Ecuadorian case from heterodox perspective. A panel data model is used, where the dependent variable being GDP pc (proxy for economic growth), and variables of interest and control (proxies of fiscal decentralization) are public investment, public consumption, the export ratio, poverty and inflation. The results indicate that greater fiscal decentralization affects economic growth, in which the public investment of the Decentralized Autonomous Governments (GADs) from the application of Organic Code of Territorial Organization, Autonomy and Decentralization (COOTAD) since 2010 has allowed its impact on the provincial GDP per capita to be stronger.

Suggested Citation

  • Amílcar Marcelo Varela Enríquez & Gustavo Adrián Salazar Espinoza, "undated". "Fiscal decentralization and economic growth in Ecuador: Panel data on provincial council and municipalities since a heterodox vision," Review of Socio - Economic Perspectives 202180, Reviewsep.
    • Handle: RePEc:aly:journl:202180
    DOI: https://doi.org/10.19275/RSEP106
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    References listed on IDEAS

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    More about this item

    Keywords

    Fiscal decentralization; economic growth; panel data; GDP per capita; public investment.;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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