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.



Further reading

Fiscal Federalism Network

Economic Policy Papers

OECD Economics Department Working Papers


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