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National Repository of Grey Literature

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Fiscal Decentralization and Economic Growth in EU Countries: Role of Institutional Mechanisms Ting, Ka Yee ; Young, Mitchell (advisor) ; Bruno, Randolph Luca (referee) ; Svoboda, Karel (referee) In the past three decades, there is a growing trend of conducting fiscal decentralization in both transition countries and developed countries. The primary reason for this interest is the theoretical prediction that fiscal decentralization could promote economic development through enhancing or improving the efficiency of the public sector. Despite general acceptance of the contribution of fiscal decentralization to economic growth in theoretical literature, none of the previous fiscal decentralization studies have been successfully verified the growth effect of fiscal decentralization. Moreover, a majority of the empirical research analyzes the relationship without taking institutional factors into consideration, which may result in a biased conclusion. Utilizing fixed effects panel data regression models, this thesis is dedicated to examining the impact of fiscal decentralization on economic growth across 27 EU countries over the period 1995-2015. It first analyzes how the effect of fiscal decentralization on economic growth could differ in Western European (WE) and Central and Eastern European (CEE) countries. Then, it examines the complementarity between fiscal decentralization and well-established institutional mechanism in enhancing economic growth in these two groups of EU countries by... Detailed record

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