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Fiscal decentralization and economic growth in Colombia: evidence from regional-level panel data

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Date
2016-08
Author
Lozano, Ignacio
Julio, Juan Manuel
UN Symbol
LC/G.2683-P
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Abstract
This paper provides evidence for the positive effects of fiscal decentralization on regional economic growth in Colombia since the enactment of the Political Constitution of 1991. The empirical strategy involved choosing a suitable estimator for the panel data approach, the augmented mean group (AMG) estimator, that enabled unobserved determinants suggested by the literature to be added to traditional long-term explanatory factors. The strategy was supplemented with exercises that provided support for the results from (i) cross-sectional models for different periods and various control variables; (ii) a test of the hypothesis of complementarity between public goods provided by different jurisdictions (spillover effects), and (iii) an assessment of unconditional convergence in regional income differences.
Translation
Descentralización fiscal y crecimiento económico en Colombia: evidencia de datos de panel a nivel regional
Published in:
CEPAL Review   No.119

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Serie
CEPAL Review
ECLAC Subtopics
CITIES AND HUMAN SETTLEMENTS ; ECONOMIC GROWTH
United Nations Subtopics
FISCAL POLICY ; TAX ADMINISTRATION ; DECENTRALIZATION IN GOVERNMENT ; ECONOMIC GROWTH ; REGIONAL DEVELOPMENT ; ECONOMETRIC MODELS
Country / Region
COLOMBIA
URI
https://hdl.handle.net/11362/40789
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