Fiscal Decentralization and Corruption in Emerging and Developing Countries

Miri Meriem; Taacha El Hassan; Benatia Mohamed Ayman

doi:doi:10.11648/j.ijefm.20160404.17

| Peer-Reviewed

Fiscal Decentralization and Corruption in Emerging and Developing Countries

Miri Meriem, Taacha El Hassan, Benatia Mohamed Ayman

Published in International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 4)

Received: 3 July 2016 Accepted: 18 July 2016 Published: 6 August 2016

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study focuses on the relationship between fiscal decentralization and ICRG index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 2000-2014. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this correlation as: Tax revenue, Non tax revenue and fiscal imbalances. The study shows a significant and robust correlation between expenditure decentralization and the index of corruption: expenditure decentralization tends to reduce the risk of corruption in these two categories of countries. The impact of Tax Revenue is as important in this relationship as it helps reduce the risk even more. While revenue decentralization and especially non-tax revenue has no significant relationship with the index.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 4, Issue 4)
DOI	10.11648/j.ijefm.20160404.17
Page(s)	211-222
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Fiscal Decentralization, Corruption, Developing Countries, Emerging Countries

References

[1]	ADES, A. et R., DI TELLA (1997). “National Champions and Corruption: some unpleasant interventionist arithmetic”. The Economic Journal July (107), 1023-1042.
[2]	ADES, A. et R. WACZIARG. “Openess, country size and government”. Journal of Public Economics. 369 (69), 305-321.
[3]	ALDERMAN, H. (2002). “Do local officials know something we don’t? Decentralization of targeted transfers in Albania”, Journal of Public Economics, 83 (3), 375-404.
[4]	ALTUNBAS, Y. ET THORNTON, J. (2012). “Fiscal Decentralization and Governance”, Public Finance Review, 40 (1) 66-85.
[5]	ARIKAN, G. G. (2004). “Fiscal decentralization: A remedy for corruption?”, International Tax and Public Finance, 11 (2), 175-195.
[6]	BARDHAN, P. (2002). “Decentralization of governance and development”, Journal of Economic Perspectives, 16 (4), 185-205.
[7]	BARDHAN, P. et D. MOOKHERJEE (2006). “Pro-poor targeting and accountability of local governments in West Bengal”, Journal of Development Economics, 79 (2), 303-327.
[8]	BARENSTEIN, M., et L. de MELLO (2001). “Fiscal decentralization and governance: A cross-country analysis”. IMF Working Papers 01/71, International Monetary fund.
[9]	BESLEY, T., et A. CASE (1995). “Incumbent behavior: Vote-seeking, tax-setting, and yardstick competition”. American Economic Review, 85 (1), 25-45.
[10]	CALDEIRA, E., et G. ROTA-GRAZIOSI (2014). “La décentralisation dans les pays en développement: une revue de la littérature”, Revue d’économie du développement, 2014/4 Vol. 22, p5-37. DOI: 10.3917/edd.284.0005.
[11]	DE MELLO, L. R. (2000). “Fiscal decentralization and intergovernmental fiscal relations: a cross-country analysis”. World development, 28 (2), 365-380.
[12]	DREHER, A. (2006). “Power to the People? The Impact of Decentralization on Governance”. Swiss Institute for Business Cycle Research, No. 121, January 2006.
[13]	ENIKOLOPOV, R., et E. ZHURAVSKAYA (2007). “Decentralization and political institutions”, Journal of Public Economics, 91 (11-12), 2261-2290.
[14]	FAN, C. S., C. LIN, et D. TREISMAN (2009). “Political decentralization and corruption: Evidence from around the world”, Journal of Public Economics, 93 (1-2), 14-34.
[15]	FISMAN, R., et R. GATTI (2002). “Decentralization and corruption: Evidence across countries”, Journal of Public Economics, 83 (3), 325-345.
[16]	HAYEK, F. A. (1948). “Individualism and economic order”. Chicago: Chicago University Press.
[17]	HUTHER, J., et A. SHAH (1998). “Applying a simple measure of good governance to the debate on fiscal decentralization”, Policy Research Working Paper Series 1894, The World Bank.
[18]	JIN, H., QIAN, Y., WEINGAST, B. R., (1999). “Regional decentralization and fiscal incentives: federalism, Chinese style”. Working Paper, Hoover Institution, Stanford University.
[19]	KAUFMANN, D., KRAAY, A., et P. ZOIDO-LOBATON (1999). “Governance matters”, World Bank Policy Research Working Paper, n 2196.
[20]	KNACK, S. et P. KEEFER (1995). “Institutions and economic performance: cross-country tests using alternative institutional measures”. Economics and Politics 3, 207-227.
[21]	LEITE, CARLOS A. et J. WEIDMANN (2002). “Does Mother Nature Corrupt? Natural Resources, Corruption and Economic Growth”. Washington, DC: International Monetary Fund. In Governance, Corruption and conomic Performance, edited by Georges T. Abed and Sanjeev Gupta, 159-96.
[22]	INMAN, R., RUBINFELD, D. (1997). “Rethinking Federalism”. The Journal of Economic Perspectives, Vol. 11, No. 4. (Autumn, 1997), pp. 43-64.
[23]	MONTINOLA, YINGYI AND WEINGEST (1995). “Federalism, Chinese Style: The Political Basis for Economic Success”. World Politics 48.1 (1996) 50-81
[24]	MUSGRAVE, R. A. (1959). The theory of public finance. Mc Graw-Hill, New York.
[25]	OATES, W. E. (2005). “Toward A second-Generation Theory of Fiscal Federalism”, International Tax and Public Finance, 12 (4), 349-373.
[26]	OATES, W. E. (1972). Fiscal federalism. New York: Harcourt Brace Jovanovich.
[27]	PERSSON, T. TABELLINI, G. (2000). “Constitutional determinants of government spending”. Mimeo.
[28]	PANIZZA, U (1998). “On the determinants of fiscal centralization: Theory and evidence”. Journal of Public Economics 74 (1999) 97–139.
[29]	PRUD’HOMME, R. (1995). “The dangers of decentralization”, World Bank Research Observer, 10 (2), 201-20.
[30]	PRYOR, R. J. (1968). “Defining the Rural-Urban Fringe”. University of North Carolina Press. Social Forces, Vol. 47, No. 2, 202-215
[31]	SALMON, P. (1987). “Decentralisation as an incentive scheme”, Oxford Review of Economic Policy, 3 (2), 24-43.
[32]	SEABRIGHT, P. (1996). “Accountability and decentralization in government: An incomplete contracts model”, European Economic Review, 40 (1), 61-89.
[33]	TANZI, V. (1996). “Fiscal federalism and decentralization: A review of some efficiency and macroeconomic aspects”, annual World Bank Conference on Development Economics 295-316, The World Bank, Washington, D. C.
[34]	TIEBOUT, C. M. (1956). “Apure theory of local expenditures”. Journal of Political Economy, 64, 416.
[35]	TREISMAN, D. (2000). “The causes of corruption: a cross-national study”, Journal of Public Economics, 76 (3), 399-457.
[36]	TREISMAN, D. (2007). “The architecture of government: rethinking political decentralization”. New York: Cambridge University Press.
[37]	Weingast, R. (1995). “The economic role of political institutions: market-preserving federalism and economic development”. The journal of law, Economics & Organization V11, N1.

Cite This Article

Plain Text BibTeX RIS

APA Style

Miri Meriem, Taacha El Hassan, Benatia Mohamed Ayman. (2016). Fiscal Decentralization and Corruption in Emerging and Developing Countries. International Journal of Economics, Finance and Management Sciences, 4(4), 211-222. https://doi.org/10.11648/j.ijefm.20160404.17

Copy | Download

ACS Style

Miri Meriem; Taacha El Hassan; Benatia Mohamed Ayman. Fiscal Decentralization and Corruption in Emerging and Developing Countries. Int. J. Econ. Finance Manag. Sci. 2016, 4(4), 211-222. doi: 10.11648/j.ijefm.20160404.17

Copy | Download

AMA Style

Miri Meriem, Taacha El Hassan, Benatia Mohamed Ayman. Fiscal Decentralization and Corruption in Emerging and Developing Countries. Int J Econ Finance Manag Sci. 2016;4(4):211-222. doi: 10.11648/j.ijefm.20160404.17

Copy | Download

@article{10.11648/j.ijefm.20160404.17,
  author = {Miri Meriem and Taacha El Hassan and Benatia Mohamed Ayman},
  title = {Fiscal Decentralization and Corruption in Emerging and Developing Countries},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {4},
  pages = {211-222},
  doi = {10.11648/j.ijefm.20160404.17},
  url = {https://doi.org/10.11648/j.ijefm.20160404.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160404.17},
  abstract = {This study focuses on the relationship between fiscal decentralization and ICRG index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 2000-2014. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this correlation as: Tax revenue, Non tax revenue and fiscal imbalances. The study shows a significant and robust correlation between expenditure decentralization and the index of corruption: expenditure decentralization tends to reduce the risk of corruption in these two categories of countries. The impact of Tax Revenue is as important in this relationship as it helps reduce the risk even more. While revenue decentralization and especially non-tax revenue has no significant relationship with the index.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Fiscal Decentralization and Corruption in Emerging and Developing Countries
AU  - Miri Meriem
AU  - Taacha El Hassan
AU  - Benatia Mohamed Ayman
Y1  - 2016/08/06
PY  - 2016
N1  - https://doi.org/10.11648/j.ijefm.20160404.17
DO  - 10.11648/j.ijefm.20160404.17
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 211
EP  - 222
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20160404.17
AB  - This study focuses on the relationship between fiscal decentralization and ICRG index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 2000-2014. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this correlation as: Tax revenue, Non tax revenue and fiscal imbalances. The study shows a significant and robust correlation between expenditure decentralization and the index of corruption: expenditure decentralization tends to reduce the risk of corruption in these two categories of countries. The impact of Tax Revenue is as important in this relationship as it helps reduce the risk even more. While revenue decentralization and especially non-tax revenue has no significant relationship with the index.
VL  - 4
IS  - 4
ER  -

Copy | Download

Author Information

Miri Meriem

Faculty of Economics, Abdelmalek Essaadi University, Tangier, Morocco
Taacha El Hassan

Faculty of Economics, Abdelmalek Essaadi University, Tangier, Morocco
Benatia Mohamed Ayman

Faculty of Economics, Kadi Ayad University, Marrakech, Morocco

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Miri Meriem, Taacha El Hassan, Benatia Mohamed Ayman. (2016). Fiscal Decentralization and Corruption in Emerging and Developing Countries. International Journal of Economics, Finance and Management Sciences, 4(4), 211-222. https://doi.org/10.11648/j.ijefm.20160404.17

Copy | Download

ACS Style

Miri Meriem; Taacha El Hassan; Benatia Mohamed Ayman. Fiscal Decentralization and Corruption in Emerging and Developing Countries. Int. J. Econ. Finance Manag. Sci. 2016, 4(4), 211-222. doi: 10.11648/j.ijefm.20160404.17

Copy | Download

AMA Style

Miri Meriem, Taacha El Hassan, Benatia Mohamed Ayman. Fiscal Decentralization and Corruption in Emerging and Developing Countries. Int J Econ Finance Manag Sci. 2016;4(4):211-222. doi: 10.11648/j.ijefm.20160404.17

Copy | Download

@article{10.11648/j.ijefm.20160404.17,
  author = {Miri Meriem and Taacha El Hassan and Benatia Mohamed Ayman},
  title = {Fiscal Decentralization and Corruption in Emerging and Developing Countries},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {4},
  number = {4},
  pages = {211-222},
  doi = {10.11648/j.ijefm.20160404.17},
  url = {https://doi.org/10.11648/j.ijefm.20160404.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20160404.17},
  abstract = {This study focuses on the relationship between fiscal decentralization and ICRG index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 2000-2014. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this correlation as: Tax revenue, Non tax revenue and fiscal imbalances. The study shows a significant and robust correlation between expenditure decentralization and the index of corruption: expenditure decentralization tends to reduce the risk of corruption in these two categories of countries. The impact of Tax Revenue is as important in this relationship as it helps reduce the risk even more. While revenue decentralization and especially non-tax revenue has no significant relationship with the index.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Fiscal Decentralization and Corruption in Emerging and Developing Countries
AU  - Miri Meriem
AU  - Taacha El Hassan
AU  - Benatia Mohamed Ayman
Y1  - 2016/08/06
PY  - 2016
N1  - https://doi.org/10.11648/j.ijefm.20160404.17
DO  - 10.11648/j.ijefm.20160404.17
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 211
EP  - 222
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20160404.17
AB  - This study focuses on the relationship between fiscal decentralization and ICRG index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 2000-2014. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this correlation as: Tax revenue, Non tax revenue and fiscal imbalances. The study shows a significant and robust correlation between expenditure decentralization and the index of corruption: expenditure decentralization tends to reduce the risk of corruption in these two categories of countries. The impact of Tax Revenue is as important in this relationship as it helps reduce the risk even more. While revenue decentralization and especially non-tax revenue has no significant relationship with the index.
VL  - 4
IS  - 4
ER  -

Copy | Download