A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Does political decentralization affect income inequality? The role of governance quality
This paper examines whether an increase in political decentralization, which is a global trend, affects income inequality. It argues that the effect of decentralization on equality lies with the quality of governance, that is, how well the traditions and institutions of an authority in a country are exercised. Using an instrumental variables (IV)/two-stage least squares (2SLS) method, this paper shows that an increase in decentralization reduces inequality. However, this reduction is stronger for countries with a relatively low quality of governance, possibly because private investments in these countries reduce income inequality. A policy implication is that institutional-specific decentralization strategies can reduce inequalities.
Does political decentralization affect income inequality? The role of governance quality
This paper examines whether an increase in political decentralization, which is a global trend, affects income inequality. It argues that the effect of decentralization on equality lies with the quality of governance, that is, how well the traditions and institutions of an authority in a country are exercised. Using an instrumental variables (IV)/two-stage least squares (2SLS) method, this paper shows that an increase in decentralization reduces inequality. However, this reduction is stronger for countries with a relatively low quality of governance, possibly because private investments in these countries reduce income inequality. A policy implication is that institutional-specific decentralization strategies can reduce inequalities.
Does political decentralization affect income inequality? The role of governance quality
Tselios, Vassilis (author)
Regional Studies ; 57 ; 829-843
2023-05-04
15 pages
Article (Journal)
Electronic Resource
Unknown
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