Fiscal Decentralization and Economic Growth

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Date

2023

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Abstract

This article proposes a method for assessing the effects of fiscal decentralization on economic growth in Kazakhstan. The relationship between the proper level of fiscal decentralization and economic growth for 14 regions and three cities of republican significance in Kazakhstan from 2010 to 2020 was evaluated using panel data analysis. The results of this study suggest that fiscal decentralization has a negative and significant impact on gross regional product. The study found that both income and expenditure decentralization have a negative impact on economic growth, and that further fiscal decentralization currently has a negative impact on GRP growth. Given the premise that fiscal decentralization usually promotes local economic progress, this consistently significant and powerful result of our empirical analysis is surprising.

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Keywords

fiscal decentralization, economic growth, expenditure decentralization

Citation

Zhanabay M./Fiscal Decentralization and Economic Growth/Economics, Kaskelen-2023

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