Fiscal decentralization and economic growth: evidence from Brazilian states

Pedro Jorge Holanda Figueiredo Alves; Jevuks Matheus Araujo; Ana Karolina Acris Melo; Eduarda Mashoski

doi:10.3326/pse.47.2.5

Fiscal decentralization and economic growth: evidence from Brazilian states

Authors

Pedro Jorge Holanda Figueiredo Alves Catholic University of Brasilia, QS 07, Lote 01, Taguatinga Sul – Taguatinga, Brasília – DF, 71966-700 https://orcid.org/0000-0001-9340-030X
Jevuks Matheus Araujo Federal University of Paraiba, Campus I Lot, Cidade Universitaria, PB, 58051-900 https://orcid.org/0000-0002-5618-4502
Ana Karolina Acris Melo Federal University of Paraiba, Campus I Lot, Cidade Universitaria, PB, 58051-900 https://orcid.org/0000-0002-9688-1249
Eduarda Mashoski Federal University of Paraiba, Campus I Lot, Cidade Universitaria, PB, 58051-900 https://orcid.org/0000-0001-7061-4727

DOI:

https://doi.org/10.3326/pse.47.2.5

Keywords:

decentralization, economic growth, Brazilian states, GMM-System

Abstract

This paper investigates the relationship between fiscal decentralization and economic growth in Brazilian states from 1996 to 2015. Using five decentralization measures and the GMM-System model to address the endogeneity problem, we have identified a positive relationship between the indicators of fiscal decentralization and economic growth and observed that the industry and service sectors are the most affected by this decentralization. Our results suggest that local governments with more autonomy make states more efficient, thus increasing economic growth.

Downloads

Published

2023-06-12

How to Cite

Holanda Figueiredo Alves, P. J., Araujo, J. M., Acris Melo, A. K., & Mashoski, E. (2023). Fiscal decentralization and economic growth: evidence from Brazilian states. Public Sector Economics - Submission Site, 47(2), 255–280. https://doi.org/10.3326/pse.47.2.5

Download Citation

Issue

Vol. 47 No. 2 (2023)

Section

Articles

License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Copyright notice

If accepted for publication, the authors will be asked to sign a Licence to Publish. Authors retain the copyright on the papers published in PSE but grant the right of publication to the journal.

Authors must obtain the right to use copyright material (e.g. maps, drawings, literary quotes, lyrics) from its owner before publishing the paper in PSE.

PSE is an Open Access Journal licensed under the Creative Commons Attribution-Non/Commercial 4.0 International License, which permits non-commercial use and redistribution, as long as the licensed work is passed along unchanged and in whole, with credit to PSE as its original publisher.

The authors can make the results of their accepted papers available before they are published in PSE on preprint platforms, blogs, and other informal communication channels by providing a link to the PSE website and noting that the manuscript will be published in PSE.

For complete information on copyright, please see Ethical guidelines for publication in PSE