Abstract
This thesis investigates economic aspects of the measurement of fiscal decentralisation to establish how a nation's fiscal arrangements can be consistently measured, so they can be compared internationally. A new index of fiscal decentralisation is developed that reflects two key elements of the theory of fiscal decentralisation: the fiscal autonomy of subnational governments; and their fiscal importance. The role of fiscal inequality in subnational governments' public finances is also considered. The thesis consists of nine chapters which are distinct but closely related. These nine chapters can be divided into the three "building blocks": An overview of the economics of fiscal decentralisation, which lays the foundation for the development of the fiscal decentralisation index. The development of a new fiscal decentralisation index ("FDI"). This FDI reflects fundamental aspects of the economics of fiscal decentralisation and provides the basis for consistent international comparisons. The measurement of the degree of fiscal decentralisation in the cases of Vietnam, China, and other selected ASEAN nations. This application is, in large part, a response to the calls from international organisations for developing countries to pursue policies that increase fiscal decentralisation. The thesis makes three contributions to the literature: (i) the development and application of a new index of fiscal decentralisation; (ii) the development of a framework for the analysis of subnational fiscal inequality that can also be included in fiscal indices in the future studies; and (iii) the identification of policy implications for fiscal decentralisation reforms in Vietnam.
Original language | English |
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Qualification | Doctor of Philosophy |
Publication status | Unpublished - 2008 |