Human Capital
Ali Younessi
Abstract
Financial decentralization is a multi-dimensional process in which some powers are transferred from the central government to the governors, and the most important thing is, the return of all the revenues of each province to the same province. One of the effects of financial decentralization is economic ...
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Financial decentralization is a multi-dimensional process in which some powers are transferred from the central government to the governors, and the most important thing is, the return of all the revenues of each province to the same province. One of the effects of financial decentralization is economic growth. Economic growth is measured through the difference in GDP. Economic growth in any country shows the economic and productive performance of each province, and the increase in the production of each province leads to the economic growth of the entire country. This study was conducted in order to investigate the relationship between economic growth and financial decentralization in the provinces of Iran, in which three cities and towns were selected as samples from each province. The technique used in this research is panel data. In this method, the data have time series and cross-sectional characteristics, consist of several dimensions and cover several periods. The time period of the research is 2018 to 2021. The equations related to the independent and dependent variables of this research are taken from the research model of Suyanto (2009), Langudi (2006) and Khosini (2006). The results of the research show that the increase in financial decentralization and the return of revenues from each province to the same province and even grants from the central government have a significant positive effect on economic growth. In addition, the research model shows that financial decentralization can improve public spending, reduce the population of low-income people, and ultimately improve the human capital index of provinces.
shiva alizadeh; mohammad alizadeh; vahid shaghaghi shahri; mahbubeh delfan
Abstract
In recent years, many fluctuations in key macroeconomic variables such as growth and inflation, etc. have been observed in Iran.Since the mentioned economic variables have a significant role in the situation of economic stability, so the study of the economic stability of the country have become one ...
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In recent years, many fluctuations in key macroeconomic variables such as growth and inflation, etc. have been observed in Iran.Since the mentioned economic variables have a significant role in the situation of economic stability, so the study of the economic stability of the country have become one of the challenging issues. However, fiscal decentralization as a policy that may increase the country's economic stability has recently been considered by many countries. Therefore, The present study uses the spathial panel method to investigate the effects of fiscal decentralization on the economic stability of the country (a combined indicator of economic growth, inflation and budget deficit) during the years 2006-2016. The results of the study show a nonlinear relationship between fiscal decentralization and economic stability, they show that a 1% improvement in fiscal decentralization of income does reduce the combined index of economic stability by 0/63%, however, with increasing fiscal decentralization of income, economic stability increases. The results also show that a 1% improvement in expenditure decentralization has led to a 1/4% increase in the economic stability index, while at high levels of fiscal decentralization of expenditure, the results indicate a decrease in economic stability.
