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Fiscal decentralization in Central and Eastern Europe
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Published:
Apr 12, 2017
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2017-04-12
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Abstract
The paper analyses the level of fiscal decentralization (FD) in selected countries of European Union for 2014 year. The empirical analysis was based on the method of multicriteria decision-making. Method of Simple Additive Weighting (SAW) was used as framework for the analysis. In order to evaluate the different level of fiscal decentralization, the same analysis was applied to subsets of countries categorized into two groups - Central and Eastern Countries. The empirical results show that developed countries of European Union has higher degree of fiscal decentralization than countries of Eastern andCentral Europe. These results show that local government of developed countries (such like Sweden or Denmark) has more power for financial solutions then developing countries (Estonia o rPoland). Fiscal decentralization index in Lithuaniais the lowest among 14 countries of European Union. Originality of this article that was used new fiscal decentralization index, which consists of 26 indicators.Â
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How to Cite
Slavinskaite, N. (2017). Fiscal decentralization in Central and Eastern Europe. Global Journal of Business, Economics and Management: Current Issues, 7(1), 69–79. https://doi.org/10.18844/gjbem.v7i1.1236
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The Global Journal of Business Economics and Management: Current Issues is an open-access journal. The copyright holder is the author or authors. Licensee: Birlesik Dunya Yenilik Arastirma ve Yayincilik Merkezi, North Nicosia, Cyprus. All articles can be downloaded free of charge. Articles published in the Journal are Open-Access articles distributed under the CC-BY license [Attribution 4.0 International (CC BY 4.0)].
References
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Beer-Toth, K. (2009) Local Financial Autonomy in Theory and Practice: The Impact of Fiscal Decentralization In Hungary, Doctor Economics and Social Science thesis. Fribourg: University of Fribourg.
Bird, R. M., Vaillancourt, F. (1998) Fiscal decentralization in Developing countries. Cambridge university press.
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Ferreiro Fernardo, A. F. (2013) Measuring trade-ofts among criteria in a balanced score card frame work: possible contribuctions from the multiple criteria decision analysis research field. Journal of Business Economics and Management, 14(3), 433–447.
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GineviÄius, R., GedvilaitÄ—, D., BruzgÄ—, Å . (2015). Assessment of a country’s regional economic development on the basis of Estimation of a Single Process (ESP) method. Entrepreneurial business and economics review (EBER), 3(2), 141–153.
GineviÄius, R., Podvezko, V. (2007) Some problems of evaluating multicriteria decision methods. International journal of management and decision making, 8(5/6), 527–539.
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GineviÄius, R., Povezko, V., GineviÄius, A. (2013) Quantitative evaluation of enterprise marketing Activities. Journal of Business Economics and Management, 14(1), 200–212.
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Hwang, C. L., Yoon, K. (1981) Multiple attribute decision making– methods and applications. A state of the art survey. Springer Verlag, Berlin, Heidelberg, New York
Ilmi, A. (2005) Decentralisation and economic growth revisited: An empirical note. Journal of Urban Economics, 57(3), 449–461.
Jin, J., Zou, H. (2005) Fiscal decentralization, revenue and expenditure assignments, and growth in China. Journal of Asian Economic, 16, 1047–1064.
Kendall, M. (1970) Rank correlation methods. Griffin, London.
Komarovska, A., UstinoviÄius, L., Å evÄenko, G., Nazarko, L. (2015) Multicriteria evaluation of commercial industrial zone development. International journal of strategic property management , 19(1), 198–212.
Martinez-Vazquez, J., Timofeev, A. (2009) Decentralization Measures Revisited. International Studies Program Working Paper, 09-13.
Nugaras, J., GineviÄius, R. (2015) The strategic assessment of networking of a higher education institution. Economic research = Ekonomska istraživanja, 28(1), 31–44.
Octavian, C. A. (2012) Local Borrowing Autonomy As Part Of Fiscal Decentralization Process. Journal of the Faculty of Economics – Economic, 2, 449–453.
Podvezko, V., Mitkus, S., Trinkūnienė, E. (2010) Complex evaluation of contracts for construction. Journal of Civil Engineering and Management: International Research and Achievements, 16(2), 287–297.
Rao, M., Singh, N. (2002). The political economy of center-state fiscal transfers in India, in J. McLaren (ed.), Institutional Elements of Tax Design and Reform, Washington, DC: World Bank, pp. 69–123
Rodden, J. (2002) The dilemma of fiscal federalism: Grants and fiscal performance around the world. American Journal of Political Science, 46(3), 670–687.
Saaty, T. (1980) The analytical hierarchy process: Planning, priority setting, resource allocation. McGraw-Hill, NY
Stegarescu, D. (2005) Public sector decentralization: Measurement concepts and recent international trends. Fiscal Studies, 26(3), 301–333.
Štreimikienė, D., Šliogerienė, J., Turskis, Z. (2016) Multi-criteria analysis of electricity generation technologies in Lithuania. Renewable Energy, 85, 148–156.
Szarowská, I. (2014) Fiscal Decentralisation and Economic Development in Selected Unitary European Countries. European Financial and Accounting Journal, 9(1), 22–40.
Vo, D. (2008) The economics of measuring fiscal decentralization, PhD Dissertation, The University of Western Australia.
Xie, D., Zou, H., Davoodi H. (1999) Fiscal Decentralization and Economic Growth in the United States. Journal of Urban Economics, 45, 228–39.
Yulindra, S. (2012). The Effect of Fiscal Decentralization on Local Economic Growth in Sumatera Barat Province. Research Paper. International Institute of Social Studies.
Zhang, T., Zou, H. (1998) Fiscal Decentralization, Public Spending, and Economic Growth in China. Journal of Public Economics, 67, 221–240.
Albornoz F., Cabrales A. (2013). Decentralization, political and corruption. Journal of Development Economics, 105, 103–111.
Aqhdaie, M. H., Zoltani, S. M., Zavadskas E. K. (2013) Market segment evaluation and selection based on application of fuzzy AHP and COPRAS-G methods. Journal of Business Economics and Management, 14(1), 213–233.
Bahl, R., Wallace, S. (2007) Intergovernmental transfers: the vertical sharing dimension, in Fiscal Equalization: Challenges in the Design of Intergovernmental Transfer, ed. by J. Martinez-Vazques and B. Searle (New York: Springer)
Baskaran, T. (2011) Fiscal decentralization, ideology, and the size of the public sector. European Journal of Political Economy, 27, 485–506.
Beer-Toth, K. (2009) Local Financial Autonomy in Theory and Practice: The Impact of Fiscal Decentralization In Hungary, Doctor Economics and Social Science thesis. Fribourg: University of Fribourg.
Bird, R. M., Vaillancourt, F. (1998) Fiscal decentralization in Developing countries. Cambridge university press.
Boschmann, N. (2009) Development Partners Working Group on Local Governance and Decentralization. Berlin : DPWG-LGD.
Brauers, W. K. M., GineviÄius, R., Podviezko, A. (2014) Development of a methodology of evaluation of financial stability of commercial banks. Panoeconomicus, 61(3), 349–367.
Bureika, G., Steišūnas, S. (2015) Complex evaluation of electric rail transport implementation in Vilnius city. Transport problems. VII international scientific conference. IV international symposium of young researchers : proceedings. [CD] / Silesian University of Technology 47-55.
Davey. K. (2003) Fiscal decentralization. Online: http://unpan1.un.org/intradoc/groups/public/documents/UNTC/UNPAN017650.pdf
Dobrovolskienė, N., Tamošiūnienė, R. (2016). An index to measure sustainability of a business project in the construction industry: Lithuanian case. Sustainability, 8(1), 1–14.
EOCD, 2013. Fiscal federalism 2014: Making decentralisation work. Paris, OECD Publishing, 2013.
Escolano, J., Eyraud, L., Moreno B. M., Sarnes, J., Tuladhar A. (2012) Fiscal performance, institutional design and decentralization in European Union countries. IMF working paper 45
Eyraud, L., Lusinyan, L. (2011) Decentralizing spending more than revenue: Does it hurt fiscal performance?, IMF working paper 11/226
Ferreiro Fernardo, A. F. (2013) Measuring trade-ofts among criteria in a balanced score card frame work: possible contribuctions from the multiple criteria decision analysis research field. Journal of Business Economics and Management, 14(3), 433–447.
GineviÄius, R., BruzgÄ—, Å . (2013) Evaluation of the effect of state subsidies on business, Business, management and education, 11(1), 50–76.
GineviÄius, R., GedvilaitÄ—, D., BruzgÄ—, Å . (2015) Assessment of a country’s regional economic development on the basis of Estimation of a Single Process (ESP) method, Entrepreneurial business and economics review (EBER). International entrepreneurial orientation: theoretical perspective , 3(2), 141–153.
GineviÄius, R., GedvilaitÄ—, D., BruzgÄ—, Å . (2015). Assessment of a country’s regional economic development on the basis of Estimation of a Single Process (ESP) method. Entrepreneurial business and economics review (EBER), 3(2), 141–153.
GineviÄius, R., Podvezko, V. (2007) Some problems of evaluating multicriteria decision methods. International journal of management and decision making, 8(5/6), 527–539.
GineviÄius, R., Podvezko, V., Podvezko, A. (2011) A new approach for evaluating of socio-economical processes by muti-criteria decision methods. 7th international scientific conference „Business and management-2012“. May 10-11, 2012, Vilnius, Lithuania.
GineviÄius, R., Povezko, V., GineviÄius, A. (2013) Quantitative evaluation of enterprise marketing Activities. Journal of Business Economics and Management, 14(1), 200–212.
GineviÄius, R., Trishch, H., PetraÅ¡keviÄius, V. (2015) Quantitative assessment of quality management systems’ processes. Economic research = Ekonomska istraživanja, 28(1), 1096–1110.
Gudienė, N., Banaitis, A., Podvezko, V., Banaitienė, N. (2014) Identification and evaluation of the critical success factors for construction projects in Lithuania: AHP approach. Journal of civil engineering and management, 20(3), 350–359.
Hooghe, L., Marks, G., Arjan, H. Schakel, Osterkatz, S. Ch., Niedzwiecki, S., Shair-Rosenfield S. (2015) A Postfunctionalist Theory of Governance. Volume I: Measuring Regional Authority. Oxford: Oxford University Press.
Hwang, C. L., Yoon, K. (1981) Multiple attribute decision making– methods and applications. A state of the art survey. Springer Verlag, Berlin, Heidelberg, New York
Ilmi, A. (2005) Decentralisation and economic growth revisited: An empirical note. Journal of Urban Economics, 57(3), 449–461.
Jin, J., Zou, H. (2005) Fiscal decentralization, revenue and expenditure assignments, and growth in China. Journal of Asian Economic, 16, 1047–1064.
Kendall, M. (1970) Rank correlation methods. Griffin, London.
Komarovska, A., UstinoviÄius, L., Å evÄenko, G., Nazarko, L. (2015) Multicriteria evaluation of commercial industrial zone development. International journal of strategic property management , 19(1), 198–212.
Martinez-Vazquez, J., Timofeev, A. (2009) Decentralization Measures Revisited. International Studies Program Working Paper, 09-13.
Nugaras, J., GineviÄius, R. (2015) The strategic assessment of networking of a higher education institution. Economic research = Ekonomska istraživanja, 28(1), 31–44.
Octavian, C. A. (2012) Local Borrowing Autonomy As Part Of Fiscal Decentralization Process. Journal of the Faculty of Economics – Economic, 2, 449–453.
Podvezko, V., Mitkus, S., Trinkūnienė, E. (2010) Complex evaluation of contracts for construction. Journal of Civil Engineering and Management: International Research and Achievements, 16(2), 287–297.
Rao, M., Singh, N. (2002). The political economy of center-state fiscal transfers in India, in J. McLaren (ed.), Institutional Elements of Tax Design and Reform, Washington, DC: World Bank, pp. 69–123
Rodden, J. (2002) The dilemma of fiscal federalism: Grants and fiscal performance around the world. American Journal of Political Science, 46(3), 670–687.
Saaty, T. (1980) The analytical hierarchy process: Planning, priority setting, resource allocation. McGraw-Hill, NY
Stegarescu, D. (2005) Public sector decentralization: Measurement concepts and recent international trends. Fiscal Studies, 26(3), 301–333.
Štreimikienė, D., Šliogerienė, J., Turskis, Z. (2016) Multi-criteria analysis of electricity generation technologies in Lithuania. Renewable Energy, 85, 148–156.
Szarowská, I. (2014) Fiscal Decentralisation and Economic Development in Selected Unitary European Countries. European Financial and Accounting Journal, 9(1), 22–40.
Vo, D. (2008) The economics of measuring fiscal decentralization, PhD Dissertation, The University of Western Australia.
Xie, D., Zou, H., Davoodi H. (1999) Fiscal Decentralization and Economic Growth in the United States. Journal of Urban Economics, 45, 228–39.
Yulindra, S. (2012). The Effect of Fiscal Decentralization on Local Economic Growth in Sumatera Barat Province. Research Paper. International Institute of Social Studies.
Zhang, T., Zou, H. (1998) Fiscal Decentralization, Public Spending, and Economic Growth in China. Journal of Public Economics, 67, 221–240.