Bullion
Keywords
Comparative Analysis, Fiscal Decentralization, Emerging Economies, Economic Performance
Abstract
Extant literatures on fiscal decentralization in most developing countries show more concerns on revenue allocation principle/sharing. Contrary to extant studies, this paper undertakes analysis of fiscal decentralization and economic performance in five emerging federal economies. The curiosity is to ascertain if poor economic performance in most emerging economies could be attributed to ill - structured fiscal decentralization. This objective was addressed using Panel Vector Autoregressive technique and impulse response function. The results showed that all the measures of fiscal decentralization such as revenue measure denoted as (FDC1), spending measure denoted as (FDC2) and revenue — spending measure or Simultaneity measure denoted as (FDC3) are not significant in enhancing the economic performance of the four out of five selected emerging federal economies. The challenges, therefore, are that most of the emerging countries economic performance woes are attributable to ill-structured fiscal decentralization. On this basis, this paper recommends the need to change the fiscal decentralization narratives in emerging federal economies by promoting more revenue decentralization that will ensure sub national governments’ fiscal independence.
Publication Title
Bullion
Issue
No. 2
Volume
Volume 47
First Page
40
Last Page
50
Recommended Citation
Okonkwo, Samuel Onyeka and Ugwuoke, Walter Okwudili PhD
(2023)
"Fiscal Decentralization and Economic Performance in selected Developing Federal Econom,"
Bullion: Vol. 47:
No.
2, Article 5.
Available at:
https://dc.cbn.gov.ng/bullion/vol47/iss2/5
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