The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter?
There are long arguments among scholars about whether fiscal decentralisation increases or reduces national income inequality. The optimistic scholars indicate that the efficiency-enhancing effects of fiscal decentralisation to reduce income inequality are more likely to occur in high-economic-leve...
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| Format: | Article |
| Language: | English |
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EconJournals
2023-11-01
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| Series: | International Journal of Economics and Financial Issues |
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| Online Access: | https://econjournals.com/index.php/ijefi/article/view/15118 |
| _version_ | 1827764940730007552 |
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| author | Fakhry Eifeky Nadia El Nemr Sarah Mousa |
| author_facet | Fakhry Eifeky Nadia El Nemr Sarah Mousa |
| author_sort | Fakhry Eifeky |
| collection | DOAJ |
| description |
There are long arguments among scholars about whether fiscal decentralisation increases or reduces national income inequality. The optimistic scholars indicate that the efficiency-enhancing effects of fiscal decentralisation to reduce income inequality are more likely to occur in high-economic-level regions since they have inter-jurisdictional competition, accountability, and revenue mobilisation. While the pessimistic view emphasised that fiscal decentralisation might increase income inequality because of low governance quality, which offsets the potential efficiency gains of decentralisation. The finding of this paper is that fiscal decentralisation cannot be optimistic or pessimistic, but after screening the empirical studies, it is based on three trends: the structure and design of fiscal decentralisation, the level of economic development, and the level of governance as a mediator.
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| first_indexed | 2024-03-11T11:12:06Z |
| format | Article |
| id | doaj.art-02544669bc184ee9b7c9a53f59899548 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-03-11T11:12:06Z |
| publishDate | 2023-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-02544669bc184ee9b7c9a53f598995482023-11-11T13:07:17ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382023-11-0113610.32479/ijefi.15118The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter?Fakhry Eifeky0Nadia El Nemr1Sarah Mousa2Faculty of Economics and Political Science, Cairo University, Cairo, Egypt,Faculty of Commerce, Benha University, EgyptPhD Candidate, Faculty of Economics and Political Science, Cairo University, Cairo, Egypt There are long arguments among scholars about whether fiscal decentralisation increases or reduces national income inequality. The optimistic scholars indicate that the efficiency-enhancing effects of fiscal decentralisation to reduce income inequality are more likely to occur in high-economic-level regions since they have inter-jurisdictional competition, accountability, and revenue mobilisation. While the pessimistic view emphasised that fiscal decentralisation might increase income inequality because of low governance quality, which offsets the potential efficiency gains of decentralisation. The finding of this paper is that fiscal decentralisation cannot be optimistic or pessimistic, but after screening the empirical studies, it is based on three trends: the structure and design of fiscal decentralisation, the level of economic development, and the level of governance as a mediator. https://econjournals.com/index.php/ijefi/article/view/15118Fiscal Decentralisation, Income Inequality, Quality of Governance |
| spellingShingle | Fakhry Eifeky Nadia El Nemr Sarah Mousa The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter? International Journal of Economics and Financial Issues Fiscal Decentralisation, Income Inequality, Quality of Governance |
| title | The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter? |
| title_full | The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter? |
| title_fullStr | The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter? |
| title_full_unstemmed | The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter? |
| title_short | The Theoretical Impact of Fiscal Decentralisation on National Income Inequality: Does Quality of Governance Matter? |
| title_sort | theoretical impact of fiscal decentralisation on national income inequality does quality of governance matter |
| topic | Fiscal Decentralisation, Income Inequality, Quality of Governance |
| url | https://econjournals.com/index.php/ijefi/article/view/15118 |
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