Fiscal federalism network

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


Related Documents