A New Perspective on Fiscal Decentralization

DOI: http://dx.doi.org/10.21784/SamorzadTerytorialny.2017.023

Atatürk University, Erzurum

A New Perspective on Fiscal Decentralization

In today’s world, fiscal decentralization is a multidimensional phenomenon, which has different effects on interregional relations and national economy, both developing and developed countries. Especially many developing and transition countries attribute a great meaning to fiscal decentralization in order to produce resolution for economic problems, to prevent of corruption and to provide efficiency in public services. In order to obtain expected utility from fiscal decentralization, there is also needed a multidimensional theoretical approach. This paper, which is prepared as a literature review, intends to describe the general framework of fiscal decentralization with a new theoretical perspective. The sub-goal of this paper is to review the casual relationship between fiscal decentralization and governance indicators.

fiscal decentralization; fiscal federalism; local authority; economic growth; accountability

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