Spatial spillover effects of fiscal decentralization on governance and public administration quality

Autor: Su Dinh Thanh, Canh Phuc Nguyen, Bui Duy-Tung, Nguyen Quang Binh, Dang Thi Bach Van
Rok vydání: 2022
Předmět:
Zdroj: Regional Studies. 57:478-496
ISSN: 1360-0591
0034-3404
DOI: 10.1080/00343404.2022.2078801
Popis: This study examines how fiscal decentralization affects the quality of governance and public administration. Using a balanced panel dataset of 63 provinces in Vietnam over the 2011–18 period and employing the spatial Durbin model, we find that governance and public administration quality develop gradually, leading to spatial spillovers across provinces. Importantly, revenue decentralization exerts a negative spatial effect on participation, transparency, accountability and control of corruption, but exhibits a positive spatial effect on public administrative procedures across regions. By contrast, fiscal transfers improve transparency, accountability and control of corruption. That is, fiscal decentralization drives local governments in ‘a race to the bottom’ when they address budget shortfall pressures.
Databáze: OpenAIRE