Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance
Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance
复制标题
当国家治理良好时,财政分权可以改善社会成果
DOI:
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发表时间:
2022
期刊:
影响因子:
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通讯作者:
Isaura Garcia Valdes
中科院分区:
文献类型:
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作者:
Qianqian Zhang;Ryota Nakatani;Isaura Garcia Valdes
: Does fiscal decentralization improve health and educational outcomes? Does this improvement depend on the quality of governance? How do fiscal decentralization and governance interact? We answer these questions through an instrumental variable Tobit analysis of cross-country panel data. We find negative effects of fiscal decentralization on health outcomes, which however are more than offset by better governance. Education expenditure decentralization to subnational governments enhances educational outcomes. We conclude that countries can only reap the benefits from decentralization when the quality of their governance arrangements exceeds a certain threshold. We also find that sequencing and staging of decentralization matter. Countries should improve government effectiveness and control of corruption first to maximize benefits of fiscal decentralization. Other than governance quality, we found, unsurprisingly, that better health infrastructure is associated with lower infant mortality rates. We also found more medical supplies are associated with longer life expectancy. Therefore, ceteris paribus , building hospital beds or increasing the number of physicians––from the average levels observed in countries in our sample––could improve health outcomes, up to a point. Low-income countries with increasing population may wish to increase hospital beds to reduce infant mortality, while medical supplies may not be urgently needed for advanced countries with aging population. In sum, fiscal decentralization works well to improve social outcomes when governance works well. The relationship is found to be nonlinear. Our study shows that improving government effectiveness and controlling corruption help improve both health and education outcomes. To benefit from fiscal decentralization, sequencing also matters; countries should improve government effectiveness and reduce corruption so that their institutional quality is strong enough to reap the positive effects from health/educational expenditure decentralization.
影响因子:
3.2
作者:
Kameshwara K
通讯作者:
Kameshwara K