Spatial spillover effects of fiscal decentralization on governance and public administration quality

This study examines how fiscal decentralization affects the quality of governance and public administration. Using a balanced panel dataset of 63 provinces in Vietnam over the 2011-18 period and employing the spatial Durbin model, we find that governance and public administration quality develop gra...

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Bibliographic Details
Published inRegional studies Vol. 57; no. 3; pp. 478 - 496
Main Authors Dinh Thanh, Su, Nguyen, Canh Phuc, Duy-Tung, Bui, Binh, Nguyen Quang, Van, Dang Thi Bach
Format Journal Article
LanguageEnglish
Published Cambridge Routledge 04.03.2023
Taylor & Francis Ltd
Subjects
Accountability
Administrative procedure
Corruption
Decentralization
fiscal decentralization
Fiscal transfer
Governance
local governance
Local government
Provinces
Public administration
Race
regional effect
spatial spillovers
Transparency
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Summary:This study examines how fiscal decentralization affects the quality of governance and public administration. Using a balanced panel dataset of 63 provinces in Vietnam over the 2011-18 period and employing the spatial Durbin model, we find that governance and public administration quality develop gradually, leading to spatial spillovers across provinces. Importantly, revenue decentralization exerts a negative spatial effect on participation, transparency, accountability and control of corruption, but exhibits a positive spatial effect on public administrative procedures across regions. By contrast, fiscal transfers improve transparency, accountability and control of corruption. That is, fiscal decentralization drives local governments in 'a race to the bottom' when they address budget shortfall pressures.
ISSN:0034-3404
1360-0591
DOI:10.1080/00343404.2022.2078801