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Technische Universität Dresden >
Fakultät Wirtschaftswissenschaften, Technische Universität Dresden >
Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden >
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http://hdl.handle.net/10419/48163
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| Title: | | Fiscal federalism and foreign transfers: does inter-jurisdictional competition increase foreign aid effectiveness?  |
| Authors: | | Lessmann, Christian Markwardt, Gunther |
| Issue Date: | | 2010 |
| Series/Report no.: | | Dresden discussion paper series in economics 10/10 |
| Abstract: | | This paper empirically studies the impact of decentralization and inter-jurisdictional competition on foreign aid effectiveness. For this purpose we examine a commonly used empirical growth model, considering different measures of fiscal decentralization. Our panel estimations reveal that expenditure decentralization and inter-jurisdictional competition - reflected by the degree of tax revenue decentralization - negatively impact aid effectiveness. We therefore conclude that donor countries should carefully consider how both anti-poverty instruments - foreign assistance and decentralization - work together. |
| Subjects: | | Foreign Aid Growth Interjurisdictional Competition |
| JEL: | | O1 O2 O4 H7 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden
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