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Public Financing in Developing and Transition Countries
Author(s) -
BAHL ROY,
WALLACE SALLY
Publication year - 2005
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/j.1540-5850.2005.00005.x
Subject(s) - developing country , decentralization , language change , transition countries , economics , government (linguistics) , public expenditure , government expenditure , developed country , public finance , development economics , business , economic policy , international economics , economic growth , macroeconomics , market economy , population , art , linguistics , philosophy , demography , literature , sociology
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.