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.

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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

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Issue

Vol. 47 No. 2 (2023)

Section

Articles

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