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Old But Resilient Story: Impact Of Decentralization On Social Welfare

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  • Ahmet Faruk Aysan
  • Dilek Demirbaş

    (Istanbul University)

  • José Luis Alberto Delgado

Abstract

This paper analyses the fiscal performance of Turkey and Argentina during the period 2000-2021, when both countries faced rapid economic growth with the consequent impact on social welfare. This work explored two different systems: Centralization in Turkey and Federalism in Argentina and, in general, studied the decentralization impact of both systems on social welfare. This study intended to create new social welfare indexes in other to analyze the resource allocation in different regions of these countries. As a first step, we built a regional Human Development Index (HDI) for each region. This attempt is considered a new contribution to the literature and intended to fill the gap in this field. Afterward, this index was compared with the fiscal resources allocation (FRA), used as a proxy of fiscal decentralization in an econometric panel data model. By using this method, we concluded that the social welfare indexes have a positive relationship with the fiscal resource allocation in the Federal system, such as in Argentina, but not in the centralized system such as in Turkey during the period analyzed from 2000 to 2020.

Suggested Citation

  • Ahmet Faruk Aysan & Dilek Demirbaş & José Luis Alberto Delgado, 2022. "Old But Resilient Story: Impact Of Decentralization On Social Welfare," Working Papers hal-03866662, HAL.
    • Handle: RePEc:hal:wpaper:hal-03866662
    Note: View the original document on HAL open archive server: https://hal.science/hal-03866662
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    References listed on IDEAS

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    1. Jonathan Rodden & Erik Wibbels, 2010. "Fiscal Decentralization And The Business Cycle: An Empirical Study Of Seven Federations," Economics and Politics, Wiley Blackwell, vol. 22(1), pages 37-67, March.
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    Cited by:

    1. Aysan, Ahmet Faruk & Babacan, Mehmet & Gür, Nurullah & Süleyman, Selim, 2023. "Firm Size and Financing Behavior during the COVID-19 Pandemic: Evidence from SMEs in Istanbul," MPRA Paper 116300, University Library of Munich, Germany, revised 2023.

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    Keywords

    Fiscal Centralization; Decentralization; HDI Index; Argentina; Turkey.;
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