THE EFFECT OF FISCAL DECENTRALIZATION ON GOVERNMENT EFFECTIVENESS: EVIDENCE FROM OECD COUNTRIES

Abstract

This paper aims to investigate the effect of fiscal decentralization on government efficiency for the period 2003-2021 in 32 OECD countries. In addition, the paper investigates the effect of the interaction of political stability, control of corruption and rule of law indicators with fiscal decentralization on government efficiency. The results obtained using Arellano-Bover/Blundell-Bond (1998)'s Two-Stage System Generalized Moments Method indicate the existence of a positive relationship between fiscal decentralization and government efficiency. In addition, improvements in the control of corruption, political stability and the rule of law, along with the increase in fiscal decentralization, also have a strong and positive effect on government efficiency.

Keywords

• Fiscal Decentralization
• Government Effectiveness
• Control of Corruption
• Political Stability
• Rule of Law

MALİ YERELLEŞMENİN HÜKÜMET ETKİNLİĞİ ÜZERİNDEKİ ETKİSİ: OECD ÜLKELERİNDEN KANITLAR

Abstract

Bu çalışma, 32 OECD ülkesinde 2003-2021 dönemi için mali yerelleşmenin hükümet etkinliği üzerindeki etkinliğini araştırmayı amaçlamaktadır. Ayrıca çalışma, yolsuzluğun kontrolü, politik istikrar ve hukukun üstünlüğü göstergelerinin mali yerelleşme ile etkileşiminin hükümet etkinliği üzerindeki etkisini de ele almaktadır. Arellano-Bover/Blundell-Bond (1998)’un İki Aşamalı Sistem Genelleştirilmiş Momentler Metodu ile yapılan analiz sonuçları, mali yerelleşme ile hükümet etkinliği arasında pozitif bir ilişkinin varlığını ortaya koymaktadır. Ek olarak, mali yerelleşmenin artışıyla birlikte yolsuzluğun kontrolü, politik istikrar ve hukukun üstünlüğündeki iyileşmelerin de hükümet etkinliği üzerinde güçlü ve pozitif bir etkisi bulunmaktadır.

Keywords

• Mali Yerelleşme
• Hükümet Etkinliği
• Yolsuzluğun Kontrolü
• Politik İstikrar
• Hukukun Üstünlüğü

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