Can the Economic Impact of Political Decentralisation Be Measured?

30 Pages Posted: 31 Jan 2011

See all articles by Roberto Ezcurra

Roberto Ezcurra

University of Navarra

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Date Written: January 2011

Abstract

This paper examines whether, given the increasing salience of subnational governments, political decentralisation has an impact on overall economic performance. It uses panel data analyses in order to determine the association between a number of the different indices of political decentralisation developed over the last decade and a half with two basic measures of economic performance: changes in aggregate GDP per head and the evolution of within-country territorial inequalities. The results highlight that, in the case of economic growth, the perception we may have of how political decentralisation affects economic performance is highly contingent on the index we use, with results ranging from a mildly positive to a neutral influence of political decentralisation on economic growth. For regional inequalities, political decentralisation seems to lead to a rise in disparities, regardless of how political decentralisation is measured.

Keywords: economic growth, Europe, political decentralisation, regional disparities, regions

JEL Classification: H70, R11, R59

Suggested Citation

Ezcurra, Roberto and Rodríguez-Pose, Andrés, Can the Economic Impact of Political Decentralisation Be Measured? (January 2011). Available at SSRN: https://ssrn.com/abstract=1749852

Roberto Ezcurra (Contact Author)

University of Navarra ( email )

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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