Decentralization in Developing Economies

Posted: 8 Aug 2014

See all articles by Lucie Gadenne

Lucie Gadenne

University College London - Department of Economics

Monica Singhal

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2014

Abstract

Standard models of fiscal federalism suggest many benefits of decentralization in developing economies, and there has been a recent push toward decentralization around the world. However, developing countries presently still have less decentralization, particularly on the revenue side, than both developed countries today and the United States and Europe historically. We consider how the trade-offs associated with fiscal federalism apply in developing countries and discuss reasons for their relatively low levels of decentralization. We also consider additional features relevant to federalism in developing economies, such as the prevalence of nongovernmental organizations and the role of social incentives in policy design.

Suggested Citation

Gadenne, Lucie and Singhal, Monica, Decentralization in Developing Economies (August 2014). Annual Review of Economics, Vol. 6, pp. 581-604, 2014, Available at SSRN: https://ssrn.com/abstract=2477754 or http://dx.doi.org/10.1146/annurev-economics-080213-040833

Lucie Gadenne (Contact Author)

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
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Monica Singhal

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-496-5062 (Phone)
617-496-6372 (Fax)

HOME PAGE: http://ksgfaculty.harvard.edu/monica_singhal

National Bureau of Economic Research (NBER) ( email )

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