scholarly journals Fiscal transfers and regional economic growth

2017 ◽  
Vol 26 (3) ◽  
pp. 651-671 ◽  
Author(s):  
H. Dawid ◽  
P. Harting ◽  
M. Neugart
Keyword(s):  
Economic Growth ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
Fiscal Transfers

scholarly journals Do Fiscal Transfers Foster Regional Economic Growth?

e-Finanse ◽  
2021 ◽  
Vol 17 (1) ◽  
pp. 19-27
Author(s):  
Naftaly Mose
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Regional Growth ◽  
Regional Economic Growth ◽  
Data Set ◽  
Regional Economic ◽  
Fiscal Transfers ◽  
Long Run ◽  
Physical Infrastructure ◽  
Fiscal Transfer

Abstract Fiscal transfer development across the world today has been in part driven by assertions of a supposed ‘economic dividend’ linked with the devolved financial spending. There is, however, little empirical evidence to validate these assertions in Kenya. It is against this background that this study was carried out to estimate the end product of fiscal transfer on regional economic growth in Kenya using a secondary panel data set. Using the ARDL estimation technique the long -run and error correction estimates of the model were generated. The findings revealed that increased fiscal transfer in recurrent budgets accelerates regional growth, hence confirming the Keynesian hypothesis. Conversely, fiscal transfer in capital expenditure was insignificant. This study recommends the need for policymakers to put in place policies and strategies that will improve budget allocation and execution in capital budgets so as to improve physical infrastructure and thus boost private productivity and consequently regional income growth.

Fiscal decentralization and regional economic growth: Theory, empirical studies, and Russian experience

2016 ◽  
pp. 94-110 ◽  
Author(s):  
A. Yushkov
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Empirical Studies ◽  
Empirical Relationship ◽  
Regional Economic Growth ◽  
Growth Theory ◽  
Russian Regions ◽  
Regional Economic ◽  
Fiscal Transfers ◽  
Federal Center

The article deals with the theoretical and empirical relationship between fiscal decentralization and economic growth. Empirical analysis of Russian regions for 2005-2012 shows that excessive expenditure decentralization within the region, which is not accompanied by the respective level of revenue decentralization, is significantly and negatively related to regional economic growth. On the contrary, regional dependence on intergovernmental fiscal transfers from the federal center is positively associated with economic growth.

scholarly journals Intergovernmental Fiscal Instruments for Stimulating Regional Economic Growth in Russia

2020 ◽  
Vol 12 (6) ◽  
pp. 54-68
Author(s):  
I.Yu. Arlashkin
Keyword(s):  
Economic Growth ◽  
Russian Federation ◽  
Regional Economic Growth ◽  
Property Taxes ◽  
Intergovernmental Transfers ◽  
Intergovernmental Fiscal Relations ◽  
Regional Economic ◽  
Fiscal Transfers ◽  
Negative Effect ◽  
The Russian Federation

The article examines the instruments used in intergovernmental fiscal relations in order to promote economic growth of the regions of the Russian Federation. The task of stimulating regional economic growth is relevant in the need for the Strategy of Spatial Development of the Russian Federation until 2025 to be implemented. The article deals with various instruments of tax decentralization as well as three main types of fiscal transfers: “grants” (primarily equalization or balancing transfers), “subsidies” (earmarked co-funding transfers), and “other intergovernmental transfers” (other earmarked transfers). All these instruments are assessed from the standpoint of stimulating economic growth with special attention being paid to the tools used by regional governments to promote local economic growth. The article summarizes the results of the main econometric studies on the topic. As a result of the present study, it is shown that the main instruments for stimulating regional economic growth are earmarked transfers (primarily capital transfers) and decentralization of taxes on income (primarily corporate income tax). At the same time, since 2015 “other intergovernmental transfers” have been playing a more significant role in stimulating economic growth than “subsidies”, which is associated with an increase in the equalizing effect of the latter. Decentralization of property taxes has most likely not had a significant impact on regional economic growth, and the negative effect of equalizing transfers (“grants”) is smoothed out by special clauses built into the methodology for their distribution.

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