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Decentralization and regional economic disparities

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  • Gil, Carlos
  • Ezcurra, Roberto
  • Pascual, Padro
  • Rapun, Manuel

Abstract

This paper analyses the impact of both fiscal and political decentralisation on regional productivity inequalities. The study of the influence of decentralisation on economic growth has received some attention in recent years, but very few studies deal with its impact on regional inequalities, both theoretically and empirically. In this paper, we analyse the relationship between different measures of regional inequalities in productivity, and several measures of political and fiscal decentralisation for a sample of 15 OECD countries. In order to control for other possible influences, we have also include in the analysis measures of public sector size and the type of party government. The results suggest a strong negative correlation between decentralisation, mainly fiscal decentralisation, and regional inequalities. Of course, much more analysis must be done before we can demonstrate such relationship. We hope that this paper will stimulate further research.

Suggested Citation

  • Gil, Carlos & Ezcurra, Roberto & Pascual, Padro & Rapun, Manuel, 2002. "Decentralization and regional economic disparities," ERSA conference papers ersa02p306, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p306
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    1. Elementos para una reforma municipal en España (I): la financiación
      by Jorge Galindo in Politikon on 2013-04-24 11:55:35

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    1. Barón-Rivera, Juan David & Meisel-Roca, Adolfo, 2004. "La descentralización y las disparidades económicas regionales en Colombia en la década de 1990," Chapters, in: Meisel-Roca, Adolfo (ed.), Macroeconomía y regiones en Colombia, chapter 4, pages 152-217, Banco de la Republica de Colombia.
    2. Joaquín Mauricio Zuleta Arango & Lisandro López Marín & Daniel Sánchez García, 2010. "Descentralización Y Disparidades Económicas Territoriales En Colombia (1990-2005)," Observatorio de la Economía Latinoamericana, Servicios Académicos Intercontinentales SL. Hasta 31/12/2022, issue 130, April.
    3. Jaime Bonet, 2004. "Descentralización fiscal y disparidades en el ingreso regional: la experiencia colombiana," Documentos de Trabajo Sobre Economía Regional y Urbana 2282, Banco de la República, Economía Regional.

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