Public Financing in Developing and Transition Countries

16 Pages Posted: 29 Dec 2005

See all articles by Sally Wallace

Sally Wallace

Georgia State University - Department of Economics; University of Pretoria

Roy W. Bahl

Georgia State University - Andrew Young School of Policy Studies

Abstract

The widespread adoption of fiscal decentralization laws during the past 25 years can be mostly tracked to economic efficiency gains and nation-building objectives. Subnational governments (SNGs) in industrialized countries account for about twice the share of total government expenditures as in developing countries. Transition countries also assign more expenditure responsibilities to SNGs than do the developing countries. There has been little growth in the SNG expenditure or tax shares over the past three decades. We confirm the basic hypotheses that the SNG expenditure share is significantly higher in countries with higher incomes, larger populations, and a lower degree of corruption.

Suggested Citation

Wallace, Sally and Bahl, Roy W., Public Financing in Developing and Transition Countries. Public Budgeting & Finance, Vol. 25, No. 4S, pp. 83-98, December 2005. Available at SSRN: https://ssrn.com/abstract=857748 or http://dx.doi.org/10.1111/j.1540-5850.2005.00005.x

Sally Wallace

Georgia State University - Department of Economics ( email )

Department of Economics
35 Broad Street, 6th Floor
Atlanta, GA 30303-3083
United States
(404) 413-0046 (Phone)

University of Pretoria ( email )

Physical Address Economic and Management Sciences
Pretoria, Gauteng 0002
South Africa

Roy W. Bahl

Georgia State University - Andrew Young School of Policy Studies ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
20
Abstract Views
790
PlumX Metrics