Fiscal Decentralization and Socio-economic Outcomes in Turkey: An Empirical Investigation

Download
2005-12
Neyaptı, Bilin
This study examines the status of fiscal decentralization and its relationship with socio-economic indicators in Turkey. As theoretical literature is ambiguous on the merits of fiscal decentralization, international evidence confirms this ambiguity by stressing the important role of administrative and political decentralization in obtaining the benefits of fiscal decentralization. Empirical evidence in this paper regarding the relationship between various socio-economic indicators and fiscal decentralization in Turkey, however, is mostly favorable. We observe that fiscal decentralization is positively related with both the level and the growth rate of output, and negatively related with personnel spending and the volatility in both central government spending and private investment. The positive association between expenditure decentralization and output volatility points at rooms for improvements with regards to transparency and accountability at lower levels of the government to reinforce the benefits of fiscal decentralization.

Suggestions

Fiscal Sustainability in Europe (FISCSUST)
Parmaksız, Ömer Kağan; Dikmen Toker, İrem(2015-11-30)
The purpose of this research project is to develop a new theoretical framework in evaluating the sustainability of fiscal policy and evolution of debt with particular emphasis on recent European experience. Fiscal or debt sustainability in literature in its most stylized form is defined as satisfying an inter-temporal budget constraint. Although it serves as a useful benchmark lower bound based on 'ability' to pay, this is a very crude approach due to its disregard of many interesting dynamics economic and ...
Poverty and Turkish labor markets
Erdil, Erkan (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2007-12-1)
This study aims to determine the relations between poverty and the dynamics of Turkish labor market. In this context, two secondary aims are also targeted. First is to demonstrate the situation of the poor in Turkey with international comparisons by employing various socio-economic measures. Second, is to clarify the poverty problem in Turkey in the framework of Turkish labor markets and to offer some policy recommendations directed towards Turkish labor markets. The study finds out endogenous relations bet...
Economic growth and technological progress in Turkey: An analysis of Schumpeterian mechanisms
Attar, M. Aykut (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2017-8)
This paper studies a second-generation Schumpeterian model to understand the nature of technological progress and economic growth in Turkey. It identifies some structural parameters numerically and tests whether certain Schumpeterian mechanisms work. Results show that both horizontal (product) and vertical (process) innovation channels operate as determined in theory. However, the pace at which vertical (process) innovation occurs is extremely low, implying that its contribution to long-run productivit...
Consuption, income and liquidity constraints : the case of Turkish economy
Ceritoğlu, Evren; Güzel, Alper; Department of Economics (2003)
The aim of this thesis study is to enlighten the economic relationship among consumption, income and liquidity constraints in Turkish Economy. For this aim, generalized instrumental variables estimation technique (GIVE) is used to estimate reduced-form consumption equations derived by Hall (1978) and improved by Campbell and Mankiw (1989). Estimations are realized for two separate periods of Turkish Economy. For the sub-period of 1987 to 1995, it is observed that a significant part of households consume the...
Financial development, exchange rate regimes and the Feldstein-Horioka puzzle: evidence from the MENA region
Özmen, Erdal (Informa UK Limited, 2007-04-01)
This article investigates whether the Feldstein and Horioka (1980) argument on domestic saving-investment relationship is supported by the data of the countries in the Middle East and North Africa region when financial development levels and exchange rate regimes are taken into account. To this end, we employ both the Auroregressive Distributed Lag bounds cointegration test and panel mean group procedures. The results support the view that a successful international financial integration requires compatible...
Citation Formats
B. Neyaptı, “Fiscal Decentralization and Socio-economic Outcomes in Turkey: An Empirical Investigation,” ODTÜ Gelişme Dergisi, vol. 32, no. 2, pp. 433–466, 2005, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/63.