2017
Fiscal Decentralization and Economic Growth in the Czech Republic
SZAROWSKÁ, IrenaBasic information
Original name
Fiscal Decentralization and Economic Growth in the Czech Republic
Authors
SZAROWSKÁ, Irena (203 Czech Republic, guarantor, belonging to the institution)
Edition
Ostrava, Proceedings of 12th International Scientific Conference Public Economics and Administration 2017, p. 303-310, 8 pp. 2017
Publisher
VŠB - Technical University of Ostrava
Other information
Language
English
Type of outcome
Proceedings paper
Field of Study
50202 Applied Economics, Econometrics
Confidentiality degree
is not subject to a state or trade secret
Publication form
storage medium (CD, DVD, flash disk)
RIV identification code
RIV/47813059:19520/17:00010956
Organization unit
School of Business Administration in Karvina
ISBN
978-80-248-4131-1
Keywords in English
economic development; fiscal decentralization; Granger causality; sub-national governments
Changed: 7/2/2020 10:58, RNDr. Daniel Jakubík
Abstract
In the original language
The aim of this article is to examine relationship between fiscal decentralization and economic development and identify direction of influence in the Czech Republic in the years 1995-2015. The research relies on the secondary statistical data of the Czech Statistical Office, the General Financial Directorate of the Czech Republic and the OECD Fiscal Decentralization Database. Since fiscal decentralization has many dimensions, the following indicators are used for empirical examination: expenditure decentralization, revenue decentralization, intergovernmental transfer decentralization and tax revenue decentralization. The study uses Hodrick-Prescott filter for isolating the cycle component of annual GDP time series. The empirical tests are based on cross correlation and Granger causality methodology. The results suggest that decentralization appears to be positively associated with GDP per capita but negatively associated with GDP growth, except expenditure decentralization positively correlated in both cases. The relationship is stronger for economic maturity than for economic growth. Based on results of Granger causality, GDP growth comes first followed by decentralization.