Back close

Public expenditure decentralization in developing countries

Publication Type : Journal Article

Publisher : Environment and Planning C: Government and Policy

Source : Environment and Planning C: Government and Policy, Volume 4, Issue 4, UK, p.405–418 (1986)

Url :

Campus : Amritapuri

School : Department of Management, School of Business

Center : Amrita Center for Economics & Governance (ACEG)

Department : Department of Management

Year : 1986

Abstract : The objective of this paper is to investigate the extent of public expenditure decentralization among developing countries, and to identify its determinants. Using data compiled from international agency sources, and from primary sources, it is shown that fiscal decentralization has gone significantly farther in developed than in developing countries. The use of factor analysis and regression analysis indicates three general explanations for the wide variation in fiscal decentralization among countries. The public expenditure share of subnational governments appears to be greater where the level of economic development is higher, in countries with larger populations, and in countries whose central government budgets carry less of a defense burden. The results also suggest that where central governments mobilize more resources through the revenue system, the subnational government's share of expenditures may be lower -- taxes are more likely to stick where they hit than to be passed through as grants to local governments.

Cite this Research Publication : R. W. Bahl and Shyam Nath, “Public expenditure decentralization in developing countries”, Environment and Planning C: Government and Policy, vol. 4, no. 4, pp. 405–418, 1986.

Admissions Apply Now