Economics Department

Does Fiscal Decentralisation Foster Regional Convergence?

 

 

 

Does fiscal decentralisation foster regional convergence?, Main Paper

 

 

Across the OECD, GDP per capita is converging. In contrast, regional disparities – or differences in GDP per capita across jurisdictions – are rising, mainly as a result of widening productivity differences. Fiscal decentralisation could help reduce them again. According to new OECD research, assigning more ownsource revenue to sub-national governments dampens regional GDP disparities and underpins regional convergence.

 

 

The papers providing background to this note are:

Fiscal decentralisation and income inequality: empirical evidence from OECD countries
Sibylle Stossberg, David Bartolini and Hansjörg Blöchliger

Fiscal decentralisation and regional disparities
David Bartolini, Sibylle Stossberg and Hansjörg Blöchliger

Regional GDP in OECD countries: how has inequality developed over time?
Felix Arnold and Hansjörg Blöchliger

 

 

Further reading

Fiscal Federalism Network

Economic Policy Papers

OECD Economics Department Working Papers

 

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