Keywords
state administration; self-government; public finance; tax autonomy; general govern- ment tax revenue; federal law
Abstract
The association of local and regional self-government is examined in regard to the decentralization of state administration. This study extrapolated data from 36 Organisation for Economic Co- operation and Development (OECD) countries and analyzed whether decentralization of the state assists in economic growth and development. Administrative decentralization is explored through defining a precedence from the literature. A systematic literature review was conducted and macroeconomic OECD data using nominal gross domestic product was analyzed for the period of 1995–2018. The results confirmed that decentralization does not positively correlate with the level of tax independence of local government and, in effect, is not an advantage. Territorial administration is highlighted throughout the paper as a key factor behind tax autonomy in relation to fi scal decentralization levels.
Recommended Citation
Semmerling, A., Paczoski, A., & Cirella, G. T. (2024). Decentralization and tax independence in OECD countries: GDP per capita analysis from 1995–2018. Journal of Banking and Financial Economics, 2022(17), 42-59. https://doi.org/10.7172/2353-6845.jbfe.2022.1.3
First Page
42
Last Page
59
Page Count
18
Received Date
15 February 2022
Revised Date
12 July 2022
Accept Date
1 August 2022
Online Available Date
24 August 2022
DOI
10.7172/2353-6845.jbfe.2022.1.3
JEL Code
E7; F3; O1; O11
Publisher
University of Warsaw