International Aspects of Fiscal Convergences on Regional and Local Level
DOI:
https://doi.org/10.4335/13.3.827-847(2015)Keywords:
fiscal decentralization, EU member states, local self-government, economic integration, EU convergenceAbstract
The paper presents the analysis of sigma (σ) and beta (β) convergences of the selected indicators as those that best represent the level of local self-government and fiscal decentralization systems across the selected EU member states. Through research we wanted to establish how EU integration process influenced the area of local self-government in selected EU member states and if we witness also the unification of this aspect among EU member states. Results confirm that convergence really occurred at the significant rate during the whole period 2004 to 2013 and also during the sub periods 2004 to 2009 and further, although in latter period some divergence or slowing down in convergence has been also present. Nevertheless, we can confirm that EU integration process has also influenced the area of local self-government and that EU member countries are converging to the commonly adopted criteria are principles as stated in EU charter of local self-government.
References
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Barro, R. J. (1991) Economic Growth in Cross-Section of Countries, The Quarterly Journal of Economics, 106(2), pp.407-443, doi: 10.2307/2937943.
Barro, R. J. & Sala-i-Martin, X. (1991) Convergence, Journal of Political Economy., 100(2), pp. 223-251, doi: 10.1086/261816.
Barro, R. J. & Sala-I-Martin, X. (2004) Economic Growth (Boston: The MIT Press).
Baumol, W. J. (1986) Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show, American Economic Review, 76(5), pp. 1072-10855.
Bialowolski, P., Kuszewski, T. & Witkowski, B. (2014) Bayesian Averaging of Classical Estimates in Forecasting Macroeconomic Indicators with Application of Business Survey Data, Empirica. Journal of European Economics, 41(1), pp. 53-68. doi: 10.1007/s10663-013-9227-x.
Boex, J. (2009). Fiscal Decentralization and Intergovernmental Finance Reform as an International Development Strategy, IDG Working Paper No. 2009-06 (Washington D.C.: Urban Institute Center on International Development and Governance).
Brezovnik, B. & Oplotnik, Ž. (2003) Mednarodna primerjava sistemov financiranja občin, Lex localis - Journal of Local Self-Government, 1(3), pp. 1-38.
Buti, M. & Sapir, A. (2006) Fiscal Policy in Europe: The Past and Future of EMU Rules from the Perspective of Musgrave and Buchanan, CEPR Discussion Paper No. 5830 (London: Centre for Economic Policy Research).
Campbell, J. & Mankiw, G. (1989) Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence, NBER Chapters, In: Blanchard, O. J. & Fisher, S. (eds.) NBER Macroeconomics Annual 1989 (Cambridge, MA: National Bureau of Economic Research), doi: 10.2307/3584973.
Council of Europe (1985) European Charter of Local Self-Government, Strasbourg: European Treaty No.- 122 (Strasbourg: Council of Europe).
DeMello, L. & Barenstein, M. (2001) Fiscal Decentralization and Governance: A Cross-Country Analysis, IMF Working Paper no. 71 (Washington D.C: IMF), doi:10.5089/9781451849240.001.
EU Directorate-General for Regional Policy (2008) Convergence of EU regions, Measures and evolution No.1. (Brussels: EU Directorate-General for Regional Policy).
European Commission (2008) Key indicators for the euro area (Brussels: European Commission).
Finžgar, M. & Oplotnik, Ž. (2013) Comparison of Fiscal Decentralization Systems in EU-27 According to Selected Criteria, Lex Localis - Journal of Local Self-Government, 11(3), pp. 651-672, doi:10.4335/11.3.651-672(2013).
Fatás, A. (1997) EMU: countries or regions? Lessons from the EMS Experience, European Economic Review, 41(3-5), pp. 743-751, doi: 10.1016/S0014-2921(97)00033-0.
Kutan, A. M. & Yigit, T. M. (2004) Nominal and Real Stochastic Convergence of Transition Economies, Journal of Comparative Economics, 32(1) , pp.23-36, doi: 10.1016/j.jce.2003.09.008.
Kutan, A. M. & Yigit, T. M. (2005) Real and Nominal Stochastic Convergence: Are the New EU Members Ready to Join the EuroZone?, Journal of Comparative Economics, 33(2), pp.387-400.
McKinnon, R. & Nechyba, T. (1997) Competition in Federal Systems, in The New Federalism: Can the State be Trusted?, In: Ferejohn, J. & Weingast, B. (eds) The New Federalism: Can the States Be Trusted? (Stanford: Hoover Institution Press), pp. 3-61.
Musgrave, M. R. (1959) The Theory of Public Finance (NY: McGraw-Hill).
Oates, E. W. (1999) An Essay on Fiscal Federalism, Journal of Economic Literature, 37(3), pp.1120-1149, doi: 10.1257/jel.37.3.1120.
Olson, M. (1969). The principle of fiscal equivalence: the division of responsibilities among different levels of government, The American Economic Review, 59(2), pp. 479-487.
Próchniak M. & Witkowski B. (2013) Time Stability of the Beta Convergence among EU Countries: Bayesian Model Averaging Perspective, Economic Modelling, 30, pp. 322-333.
Proud´homme, R. (1995) The dangers of decentralization, The World Bank Research Observar, 10(2), pp. 201-220.
Sharpe, L. J. (1973) Theories and Values of Local Government, Political Studies, 2, pp. 153-174, doi:10.1093/wbro/10.2.201.
Stewart, J., Greenwood, R. (1995) The Purpose and Character of LG, (Birmingham: University of Birmingham).
Skidmore, M, Hideki T. & Merriman D. (2004) Convergence in Government Spending: Theory and Cross-Country Evidence, Kyklos, 57, pp. 587–619.
Skidmore, M. & Deller, S. (2008) Is Local Government Spending Converging?, Eastern Economic Journal, 34, pp. 41–55, doi:10.1057/palgrave.eej.9050019.
Solow, R. (1956) A Contribution to the Theory of Economic Growth, Quarterly Journal of Economics, 70(1), pp. 65–94, doi: 10.2307/1884513.
Tanzi, V. (1996) Fiscal Federalism and Decentralization: A Review of Some Efficiency and Macroeconomic Aspects, Annual Bank Conference on Development Economics 1996 (Washington, D.C.: The World Bank), pp. 296-316.
Tiebout, C. (1956) A Pure Theory of Local Expenditures, Journal of Political Economy, 64(5), pp. 416-424, doi: 10.1086/257839.
Varblane U. & Vahter P. (2005) An Analysis of the Economic Convergence Process in the Transition Countries, University of Tartu, Faculty of Economics and Business Administration Working Paper Series no. 37 (Tartu: University of Tartu, Faculty of Economics and Business Administration).
Vojinović B., Prochniak M. & Acharya S. (2009) Convergence analysis among the ten European transition economies, Hitotsubashi Journal of Economics, 50(2), pp. 124-141.
Vojinović, B., Oplotnik, Ž. J. & Próchniak, M. (2010) EU enlargement and real economic convergence, Post–Communist Economies, 22(3), pp. 303-322, doi:10.1080/14631377.2010.498681.
Wagner, M. & Hlouskova, J. (2002) The CEEC10's Real Convergence Prospects, CEPR Discussion Papers 3318 (Vienna: Institue for Advanced Studies).
Wagner M. & Hlouskova J. (2009) Growth Regressions, Principal Components and Frequentist Model Averaging, Economics Series (Vienna: Institute for Advanced Studies).</span></p>
Published
2015-07-31
Issue
Section
Conference Paper (Annual Conference 2020)
