@article{oai:nagoya.repo.nii.ac.jp:00004746,
 author = {Tarigan, M. Syamsul},
 journal = {国際開発研究フォーラム, Forum of International Development Studies},
 month = {Aug},
 note = {This study examines the relationship between fiscal decentralization and economic development by using a pooled data set of thirty-four countries from the period 1979 to 1999. There are four hypotheses tested in this study. First, fiscal decentralization allows better efficiency of resource allocation and thus leads to higher economic growth. Second, fiscal decentralization leads to a better public service delivery. Third, fiscal decentralization brings macroeconomic instability. Lastly, fiscal decentralization leads to a more efficient bureaucracy and thus less corruption. The results show a negative but insignificant relationship between the growth of real per capita GDP and the level of fiscal decentralization. Therefore, no definite conclusion can be drawn in answering the hypothesis whether fiscal decentralization will bring more efficient resource allocation and thus lead to higher economic growth. In terms of the improvement in public service delivery, the results show that fiscal decentralization is negatively and significantly associated. This finding is in contradiction with the argument that lower levels of government tend to work closer with the peoples and therefore, they can provide better public service（Oates, 1972）. In terms of macroeconomic stability, the results show that fiscal decentralization policy may not endanger macroeconomic stability. However, since such a relationship is considered insignificant, there is no definite conclusion that can be drawn. Lastly, the study has also proven that fiscal decentralization leads to lower corruption in the government. This result is in accordance with the findings of Fisman and Gatti（2002）who suggested that similar tendency. This is quite different with the mainstream view that suggests corruption is more  prevalent at the local level.},
 pages = {245--271},
 title = {Fiscal Decentralization and Economic Development : A Cross-Country Empirical Study},
 volume = {24},
 year = {2003}
}