Forms of Government Decentralization and Institutional Quality: Evidence from a Large Sample of Nations

23 Pages Posted: 5 Apr 2016 Last revised: 22 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

James W. Saunoris

Eastern Michigan University

Date Written: March 1, 2016

Abstract

This paper studies the effects of various forms of government decentralization on institutional quality across countries. Using corruption and the shadow economy to proxy for institutional quality, as well as three forms of government decentralization (i.e., virtual, physical, and fiscal), the econometric results show virtual decentralization to be the most effective in improving institutional quality. The effects on transition and countries in Asia are also considered.

Keywords: government decentralization, shadow economy, institutional quality, virtual decentralization

JEL Classification: K42; H11; H73

Suggested Citation

Goel, Rajeev K. and Saunoris, James W., Forms of Government Decentralization and Institutional Quality: Evidence from a Large Sample of Nations (March 1, 2016). ADBI Working Paper 562. Available at SSRN: https://ssrn.com/abstract=2756965 or http://dx.doi.org/10.2139/ssrn.2756965

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

James W. Saunoris

Eastern Michigan University ( email )

Eastern Michigan University
Ypsilanti, MI 48197
United States

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