Institutional quality as the driver of fiscal decentralization in developing countries
AbstractIn this essay, I argue that the various institutional settings of fiscal decentralization observed in developing countries are contingent on institutional quality. Other incentives may exist for policymakers to change the degrees of fiscal power. My research is based on a five-year average o...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-06-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2234220 |
| _version_ | 1797777081382207488 |
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| author | Kumba Digdowiseiso |
| author_facet | Kumba Digdowiseiso |
| author_sort | Kumba Digdowiseiso |
| collection | DOAJ |
| description | AbstractIn this essay, I argue that the various institutional settings of fiscal decentralization observed in developing countries are contingent on institutional quality. Other incentives may exist for policymakers to change the degrees of fiscal power. My research is based on a five-year average of data from 34 developing countries between 1990 and 2014.I employ the Generalized Method of Moments (GMM) to address the issue of endogeneity, which is a common issue in fiscal decentralization studies. The findings show a strong nonlinear relationship between institutional quality and fiscal decentralization metrics. In this context, since democracy (polity), participatory democracy, bureaucratic quality, law and order, and fiscal decentralization are all emerging from low levels of development, an increase in the magnitude of these institutional quality variables will further reduce fiscal autonomy. |
| first_indexed | 2024-03-12T23:00:03Z |
| format | Article |
| id | doaj.art-acc19cd01bb742a5b571904bb04630c3 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-12T23:00:03Z |
| publishDate | 2023-06-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-acc19cd01bb742a5b571904bb04630c32023-07-19T13:50:50ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-06-0111210.1080/23322039.2023.2234220Institutional quality as the driver of fiscal decentralization in developing countriesKumba Digdowiseiso0Department of Development Economics and Public Finance, University of National, South Jakarta, IndonesiaAbstractIn this essay, I argue that the various institutional settings of fiscal decentralization observed in developing countries are contingent on institutional quality. Other incentives may exist for policymakers to change the degrees of fiscal power. My research is based on a five-year average of data from 34 developing countries between 1990 and 2014.I employ the Generalized Method of Moments (GMM) to address the issue of endogeneity, which is a common issue in fiscal decentralization studies. The findings show a strong nonlinear relationship between institutional quality and fiscal decentralization metrics. In this context, since democracy (polity), participatory democracy, bureaucratic quality, law and order, and fiscal decentralization are all emerging from low levels of development, an increase in the magnitude of these institutional quality variables will further reduce fiscal autonomy.https://www.tandfonline.com/doi/10.1080/23322039.2023.2234220Fiscal DecentralizationInstitutional QualitySubnational Government AnalysisDeveloping CountriesE62H10 |
| spellingShingle | Kumba Digdowiseiso Institutional quality as the driver of fiscal decentralization in developing countries Cogent Economics & Finance Fiscal Decentralization Institutional Quality Subnational Government Analysis Developing Countries E62 H10 |
| title | Institutional quality as the driver of fiscal decentralization in developing countries |
| title_full | Institutional quality as the driver of fiscal decentralization in developing countries |
| title_fullStr | Institutional quality as the driver of fiscal decentralization in developing countries |
| title_full_unstemmed | Institutional quality as the driver of fiscal decentralization in developing countries |
| title_short | Institutional quality as the driver of fiscal decentralization in developing countries |
| title_sort | institutional quality as the driver of fiscal decentralization in developing countries |
| topic | Fiscal Decentralization Institutional Quality Subnational Government Analysis Developing Countries E62 H10 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2234220 |
| work_keys_str_mv | AT kumbadigdowiseiso institutionalqualityasthedriveroffiscaldecentralizationindevelopingcountries |