Decentralization and macroeconomic performance

David N. King*, Yue Ma

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

2 Citations (Scopus)

Abstract

The paper examines the relationship between some key measures of macroeconomic performance and fiscal decentralization in OECD countries, and the impact on this relationship of increased policy co-ordination among countries since 1985. It is shown that prior to 1985 there was a significant relationship between decentralization and macroeconomic performance on all of these measures, with decentralized performing better. By 1996, however, the relationships had all ceased to be significant. This suggests that, as a result of harmonization, the tendency for decentralized economies to have more effective economic policies has weakened.
Original languageEnglish
Pages (from-to)11-14
JournalApplied Economics Letters
Volume7
Issue number1
DOIs
Publication statusPublished - 2000
Externally publishedYes

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