Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries

Since 1970 era, the discussion about fiscal decentralization becomes an important subject. A recent World Bank study found that of the 75 developing and transition countries in the world with populations greater than 5 million, all but 12 claim to be embarked on some transfer of fiscal power from th...

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Main Authors: Abd. Ghafar b. Ismail, Muhammad Zilal Hamzah, Jhon Tafbu Ritonga
Format: Article
Language:English
Published: Universitas Islam Indonesia 2009-07-01
Series:Economic Journal of Emerging Markets
Online Access:https://jurnal.uii.ac.id/JEP/article/view/615
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author Abd. Ghafar b. Ismail
Muhammad Zilal Hamzah
Jhon Tafbu Ritonga
author_facet Abd. Ghafar b. Ismail
Muhammad Zilal Hamzah
Jhon Tafbu Ritonga
author_sort Abd. Ghafar b. Ismail
collection DOAJ
description Since 1970 era, the discussion about fiscal decentralization becomes an important subject. A recent World Bank study found that of the 75 developing and transition countries in the world with populations greater than 5 million, all but 12 claim to be embarked on some transfer of fiscal power from the central to sub national governments. This is a revolu-tion of how people think fiscally. The subject has also attracted many researchers to explore the decentralization system. As such many researchers mainly try to focus that fiscal decen-tralization would have a significant effect on economic growth. Empirically, these research-ers also prove that the decentralization approach of a nation's fiscal structure is an effective strategy to promote economic growth. The central structure of fiscal decentralization is the degree that creates growth-promoting decentralization systems that distinguish decentraliza-tion system capabilities in promoting economic growth to a greater or lesser degree. Hence, this paper will provide the empirical evidence for selected Muslim countries where these countries adopt the differences approaches in fiscal decentralization, i.e., transition coun-tries versus countries with a well-functioning fiscal system. JEL classification: H7; O4 Keywords: fiscal decentralization; economic growth
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spelling doaj.art-bed6c4d2c0714b0c9faa645dc198140e2022-12-22T00:45:13ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2009-07-019210.20885/ejem.v9i2.615Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim CountriesAbd. Ghafar b. IsmailMuhammad Zilal HamzahJhon Tafbu RitongaSince 1970 era, the discussion about fiscal decentralization becomes an important subject. A recent World Bank study found that of the 75 developing and transition countries in the world with populations greater than 5 million, all but 12 claim to be embarked on some transfer of fiscal power from the central to sub national governments. This is a revolu-tion of how people think fiscally. The subject has also attracted many researchers to explore the decentralization system. As such many researchers mainly try to focus that fiscal decen-tralization would have a significant effect on economic growth. Empirically, these research-ers also prove that the decentralization approach of a nation's fiscal structure is an effective strategy to promote economic growth. The central structure of fiscal decentralization is the degree that creates growth-promoting decentralization systems that distinguish decentraliza-tion system capabilities in promoting economic growth to a greater or lesser degree. Hence, this paper will provide the empirical evidence for selected Muslim countries where these countries adopt the differences approaches in fiscal decentralization, i.e., transition coun-tries versus countries with a well-functioning fiscal system. JEL classification: H7; O4 Keywords: fiscal decentralization; economic growth https://jurnal.uii.ac.id/JEP/article/view/615
spellingShingle Abd. Ghafar b. Ismail
Muhammad Zilal Hamzah
Jhon Tafbu Ritonga
Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries
Economic Journal of Emerging Markets
title Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries
title_full Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries
title_fullStr Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries
title_full_unstemmed Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries
title_short Fiscal Decentralization and Economic Growth: Evidence from Selected Muslim Countries
title_sort fiscal decentralization and economic growth evidence from selected muslim countries
url https://jurnal.uii.ac.id/JEP/article/view/615
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