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“Glocalization” and decentralization: The role of local governments in the new international context

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  • Porto, Alberto
  • Tortarolo, Natalia Porto y Darío

Abstract

Globalization, technological changes and the information revolution are phenomena that affect the ways in which different levels of government allocate their public resources and expenditures. This paper examines one aspect of the problem: the decentralization of the subnational public sector and its relation to economic integration. The study focuses on Argentina and Brazil with a panel data for each country separately, for the period 1985-2005. The results show no relationship between the vertical structure of the subnational public sector and economic openness. There may be two explanations for this: factors working in opposite directions compensate their effects; or interferences from higher levels of government prevent modifications. The control variables have the signs suggested by the theory of fiscal federalism.

Suggested Citation

  • Porto, Alberto & Tortarolo, Natalia Porto y Darío, 2014. "“Glocalization” and decentralization: The role of local governments in the new international context," MPRA Paper 63743, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:63743
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    References listed on IDEAS

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    Cited by:

    1. Thierry Madiès & Emmanuelle Taugourdeau, 2020. "Vertical transfers and tax competition: does trade integration matter?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 453-475, October.
    2. Thierry MADIÈS & Emmanuelle TAUGOURDEAU, 2019. "Decentralized leadership in a federation with competition for mobile firms: Does economic integration matter?," Working Papers 2019-24, Center for Research in Economics and Statistics.
    3. Thierry MADIÈS & Emmanuelle TAUGOURDEAU, 2019. "Decentralized leadership in a federation with competition for mobile firms: Does economic integration matter?," Working Papers 2019-24, Center for Research in Economics and Statistics.

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    More about this item

    Keywords

    globalization; information revolution; glocalization; local governments;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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