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Can Fiscal Decentralization Strengthen Social Capital?

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  • International Monetary Fund

Abstract

Countries where social and political institutions stimulate interpersonal trust, civic cooperation, and social cohesiveness tend to have more efficient governments, better governance systems, and faster growth. This paper provides cross-country evidence, based on a sample of developing and developed countries, that fiscal decentralization—the assignment of expenditure functions and revenue sources to lower levels of government—can boost social capital and therefore be integrated into second-generation reforms.

Suggested Citation

  • International Monetary Fund, 2000. "Can Fiscal Decentralization Strengthen Social Capital?," IMF Working Papers 2000/129, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/129
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    Citations

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    Cited by:

    1. Jørn Rattsø & Jon Hernes Fiva, 2005. "Decentralization with Property Taxation to Improve Incentives: Evidence from Local Governments’ Discrete Choice," Working Paper Series 5305, Department of Economics, Norwegian University of Science and Technology, revised 02 Sep 2005.
    2. Trien NGUYEN & Randall M. WIGLE, 2009. "The Skill Dimension of Labour Market Impacts of External Price Shocks: Numerical Calculations From a Canadian Regional Trade Model," EcoMod2009 21500071, EcoMod.
    3. Neyapti, Bilin, 2004. "Fiscal decentralization, central bank independence and inflation: a panel investigation," Economics Letters, Elsevier, vol. 82(2), pages 227-230, February.
    4. Neyapti, Bilin, 2010. "Fiscal decentralization and deficits: International evidence," European Journal of Political Economy, Elsevier, vol. 26(2), pages 155-166, June.
    5. Iqbal, Nasir & Nawaz, Saima, 2010. "Fiscal Decentralization and Macroeconomic Stability: Theory and Evidence from Pakistan," MPRA Paper 27184, University Library of Munich, Germany.
    6. Schild, Christopher-Johannes & Wrede, Matthias, 2015. "Cultural identity, mobility and decentralization," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 323-333.
    7. Neyapti, Bilin, 2010. "Fiscal decentralization and deficits: International evidence," European Journal of Political Economy, Elsevier, vol. 26(2), pages 155-166, June.
    8. Joseph J. Capuno, 2005. "The quality of local governance and development under decentralization in the Philippines," UP School of Economics Discussion Papers 200506, University of the Philippines School of Economics.
    9. Neyapti, Bilin & Bulut-Cevik, Zeynep Burcu, 2014. "Fiscal efficiency, redistribution and welfare," Economic Modelling, Elsevier, vol. 41(C), pages 375-382.
    10. Faguet, Jean-Paul, 2003. "Decentralization and local government in Bolivia : an overview from the bottom up," LSE Research Online Documents on Economics 481, London School of Economics and Political Science, LSE Library.
    11. Fabio Sabatini, 2007. "Mapping Italy’s social capital," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    12. Faguet, Jean-Paul, 2014. "Decentralization and Governance," World Development, Elsevier, vol. 53(C), pages 2-13.
    13. Benno Torgler & Christoph A. Schaltegger, 2005. "Trust and Fiscal Performance: A Panel Analysis with Swiss Data," Working Papers 2005.61, Fondazione Eni Enrico Mattei.
    14. Ronald MacDonald & Paul Hallwood, 2004. "The Economic Case for Fiscal Federalism in Scotland," Working papers 2004-42, University of Connecticut, Department of Economics.
    15. Bilin Neyapti & Zeynep Burcu Bulut-Cevik, 2011. "Fiscal Decentralization, Redistribution and Growth," Koç University-TUSIAD Economic Research Forum Working Papers 1114, Koc University-TUSIAD Economic Research Forum.
    16. de Mello, Luiz & Sab, Randa, 2002. "Government spending, rights, and civil liberties," International Review of Law and Economics, Elsevier, vol. 22(3), pages 257-276, September.
    17. Schaltegger, Christoph A. & Torgler, Benno, 2007. "Government accountability and fiscal discipline: A panel analysis using Swiss data," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 117-140, February.
    18. Busemeyer, Marius R., 2007. "The Impact of Fiscal Decentralisation on Education and Other Types of Spending," MPIfG Discussion Paper 07/8, Max Planck Institute for the Study of Societies.

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