Fiscal decentralization and regional disparities in Czechia and Slovakia: Regression analysis at the NUTS2 and NUTS3 level
ČlánekOtevřený přístuppeer-reviewedpublishedSoubory
Datum publikování
2019
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University of Pardubice
Abstrakt
Connection between fiscal decentralization and regional disparities is
usually explained in two different manners. Fiscal decentralization might enhance the
economic growth and optimal public good provision (and by this way might reduce
regional disparities) or it can contribute to the deepening of differences among poor
and rich regions. However, there is a wide empirical research of this connection in the
economic literature. Despite it, in Czech and Slovak related research, there is an
absence of such a literature. This paper focuses on revealing the character of
relationship between fiscal decentralization and regional disparities in Czechia and
Slovakia on both NUTS2 and NUTS3 levels. Regional disparities increase within both
countries. Additionally, estimations results are about supporting the undesirable effect
of fiscal decentralization. Statistical significant positive relationship between
expenditure and revenue decentralization and regional disparities is observed in both
countries, while this relationship using the measurement of tax decentralization is
significant and negative only in the case of Slovakia. Unfortunately, even if the inverse
estimated relationship support the hypothesis about reduction of regional disparities
by tax decentralization, analysis of input data shows the trend toward decreasing the
tax decentralization. It contributes to higher regional disparities, too.
Rozsah stran
p. 91 - 101 (11 s.)
ISSN
1211-555X (Print)
1804-8048 (Online)
1804-8048 (Online)
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Zdrojový dokument
Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 47/2019
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regional disparities, fiscal decentralization, NUTS 2, NUTS 3