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Does fiscal decentralization foster regional investment in productive infrastructure?
OECD, 2, rue André Pascal, 75775 Paris Cedex 16, France.
Universitat de Barcelona and Institut d'Economia de Barcelona (IEB), Spain.
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics. Jönköping University, Jönköping International Business School, JIBS, Centre for Family Entrepreneurship and Ownership (CeFEO).ORCID iD: 0000-0001-5776-9396
European Investment Bank, Luxembourg.
2013 (English)In: European Journal of Political Economy, ISSN 0176-2680, E-ISSN 1873-5703, Vol. 31, p. 15-25Article in journal (Refereed) Published
Abstract [en]

The aim of this paper is to analyze the effect of revenue decentralization on the provision of infrastructure at the sub-national level. We estimate the effects of revenue decentralization and earmarked grant financing on the level of sub-national infrastructure investment in 20 European countries over the period 1990-2009. The results are interpreted in light of the predictions of the theory on fiscal federalism. We find that it is sub-national infrastructure investment that increases after revenue decentralization and not investment in redistribution. However, the effect of revenue decentralization is lower the higher the use of earmarked grants to fund infrastructure investment.

Place, publisher, year, edition, pages
2013. Vol. 31, p. 15-25
Keywords [en]
regional investment, fiscal federalism, dynamic panel data
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-20682DOI: 10.1016/j.ejpoleco.2013.03.003ISI: 000322690100002Scopus ID: 2-s2.0-84876308216Local ID: ;intsam;607653OAI: oai:DiVA.org:hj-20682DiVA, id: diva2:607653
Available from: 2013-02-25 Created: 2013-02-25 Last updated: 2021-03-03Bibliographically approved

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Stephan, Andreas

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