Public finance and fiscal policy

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.

 

 

Further reading

Fiscal Federalism Network

Economic Policy Papers

OECD Economics Department Working Papers

 

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