Skip to main content Accessibility help
×
Home
Hostname: page-component-558cb97cc8-m5bhc Total loading time: 0.841 Render date: 2022-10-06T07:39:32.683Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "displayNetworkTab": true, "displayNetworkMapGraph": true, "useSa": true } hasContentIssue true

7 - Decentralization and Business Performance

Published online by Cambridge University Press:  18 February 2019

Jonathan A. Rodden
Affiliation:
Stanford University, California
Erik Wibbels
Affiliation:
Duke University, North Carolina
Get access

Summary

Decisions by individual businesses are critical to the four core theoretical benefits of decentralization: tailoring, monitoring, competition, and accountability. If decentralization is working effectively, we should see evidence of it in the innovation, expansion, and productivity of firms in a given locality; and we should observe more mobile businesses exploiting differences between regions in their location decisions. Despite the clear theoretical role for business performance in the literature, the empirical evidence linking decentralization to business outcomes is thin. In this chapter, I connect the macroeconomic work on decentralization and economic performance with the literature on subnational business performance. I first lay out the major factors that affect business performance, organizing them by when subnational leaders can alter them and businesses can experience them. Next, I delineate the assumptions regarding business activity that underpin the theoretical arguments in favor of decentralization. I conclude by drawing policy implications for developmental interventions, showing when decentralization will stimulate business activity and when it may prove injurious.
Type
Chapter
Information
Decentralized Governance and Accountability
Academic Research and the Future of Donor Programming
, pp. 144 - 177
Publisher: Cambridge University Press
Print publication year: 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abdullatif, L., Martinez-Vasquez, J., and Musharraf, C. (2013). “Is Fiscal Decentralization Harmful to Business Climate?International Center for Public Policy, Andrew Young School of Public Policy, Georgia State University.Google Scholar
Acemoglu, D. and Angrist, J. (1999). ”How Large Are the Social Returns to Education? Evidence from Compulsory Schooling Laws.” NBER Working Paper 7444.CrossRef
Acemoglu, D., Cantoni, D., Johnson, S., and Robinson, J. A. (2009). “The Consequences of Radical Reform: The French Revolution.” NBER Working Paper 14831.CrossRef
Acemoglu, D., and Dell, M. (2010). “Productivity Differences between and within Countries.American Economic Journal: Macroeconomics 2(1): 169188.Google Scholar
Acemoglu, D., García-Jimeno, C., and Robinson, J. A. (2015). “State Capacity and Economic Development: A Network Approach.” American Economic Review 105(8): 23642409.CrossRefGoogle Scholar
Acemoglu, D., and Johnson, S. (2005). “Unbundling Institutions.” Journal of Political Economy 113(5): 949995.CrossRefGoogle Scholar
Ackerman, S. R. (1978). Corruption: A Study in Political Economy. New York, NY: Academic Press.Google Scholar
Agrawal, A., and Ostrom, E. (2001). “Collective Action, Property Rights, and Decentralization in Resource Use in India and Nepal.” Politics & Society 29(4): 485514.CrossRefGoogle Scholar
Aizenman, J., and Marion, N. P. (1993). “Policy Uncertainty, Persistence and Growth.” Review of International Economics 1(2): 145163.CrossRefGoogle Scholar
Akai, N., and Sakata, M. (2002). “Fiscal Decentralization Contributes to Economic Growth: Evidence from State-Level Cross-Section Data for the United States.” Journal of Urban Economics 52(1): 93108.CrossRefGoogle Scholar
Alesina, A., and Giuliano, P. (2015). “Culture and Institutions.” Journal of Economic Literature 53(4): 898944.CrossRefGoogle Scholar
Ardagna, S., and Lusardi, A. (2009). “Where Does Regulation Hurt? Evidence from New Businesses across Countries.” NBER Working Paper 14747.CrossRef
Asatryan, Z., and Feld, L. P. (2015). “Revisiting the Link between Growth and Federalism: A Bayesian Model Averaging Approach.” Journal of Comparative Economics 43(3): 772781.CrossRefGoogle Scholar
The Asia Foundation (2011). “Innovations and Strengthening Local Economic Governance in Asia.” Technical Report. San Francisco, CA: The Asia Foundation.
Asiedu, E., and Lien, D. (2011). “Democracy, Foreign Direct Investment and Natural Resources.” Journal of International Economics 84(1): 99111.CrossRefGoogle Scholar
Bahl, R., and Bird, R. (2008). “Subnational Taxes in Developing Countries: The Way Forward.” Public Budgeting and Finance 28(4): 125.CrossRefGoogle Scholar
Bai, J., Jayachandran, S., Malesky, E. J., and Olken, B. A. (2017). “Firm Growth and Corruption: Empirical Evidence from Vietnam.” Economic Journal https://doi.org/10.1111/ecoj.12560.CrossRef
Banerjee, A. V., and Duflo, E. (2005). “Growth Theory through the Lens of Development Economics.Handbook of Economic Growth 1 (Part A): 473552.CrossRefGoogle Scholar
Banerjee, A., and Iyer, L. (2005). “History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India.” American Economic Review 95(4): 11901213.CrossRefGoogle Scholar
Bardhan, P., and Mookherjee, D. (2005). “Decentralizing Antipoverty Program Delivery in Developing Countries.” Journal of Public Economics 89(4): 675704.CrossRefGoogle Scholar
Bardhan, P., and Mookherjee, D. (2006). “Decentralization, Corruption, and Government Accountability.” International Handbook on the Economics of Corruption 6: 161188.Google Scholar
Begg, I. (1999). “Cities and Competitiveness.” Urban Studies 36(5/6): 795.CrossRefGoogle Scholar
Bell, D. A. (2015). The China Model: Political Meritocracy and the Limits of Democracy. Princeton, NJ: Princeton University Press.CrossRefGoogle Scholar
Beramendi, P. (2007). “Federalism.” In Boix, C. and Stokes, S. C. (eds.), The Oxford Handbook of Comparative Politics (pp. 752–781). New York, NY: Oxford University Press.Google Scholar
Besley, T., and Case, A. (1992). “Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition.” American Economic Review 85(1): 2545.Google Scholar
Bird, M. R. M. (1999). “Rethinking Subnational Taxes: A New Look at Tax Assignment.” IMF Working Paper 99–165.CrossRef
Bland, G., and Vaz, P. (2017). “An Effective Tool for Promoting Growth and Effectiveness? The Sustainability of the Subnational Business Environment Index.” RTI Press. 10.3768/rtipress.2017.op.0038.1704.
Brennan, G., and Buchanan, J. M. (1980). The Power to Tax: Analytic Foundations of a Fiscal Constitution. Cambridge, UK: Cambridge University Press.Google Scholar
Brown, J. D., Earle, J., and Gehlbach, S. (2009). “Helping Hand or Grabbing Hand? State Bureaucracy and Privatization Effectiveness.” American Political Science Review 103(2): 264283.CrossRefGoogle Scholar
Broz, J. L. (2002). “Political System Transparency and Monetary Commitment Regimes.” International Organization 56(4): 861887.CrossRefGoogle Scholar
Bruhn, M. (2011). “License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico.” Review of Economics and Statistics 93(1): 382386.CrossRefGoogle Scholar
Budd, L., and Hirmis, A. (2004). “Conceptual Framework for Regional Competitiveness.” Regional Studies 38(9): 10151028.CrossRefGoogle Scholar
Cai, H., and Treisman, D. (2004). “Does Competition for Capital Discipline Governments? Decentralization, Globalization, and Public Policy.” American Economic Review 95(3): 817830.CrossRefGoogle Scholar
Campos, J. E., and Hellman, J. S. (2005). “Governance Gone Local: Does Decentralization Improve Accountability?” In White, R. and Smoke, P. (eds.), East Asia Decentralizes: Making Local Government Work (pp. 237–252). Washington, DC: World Bank Publications.Google Scholar
Chan, C. M., Makino, S., and Isobe, T. (2010). “Does Subnational Region Matter? Foreign Affiliate Performance in the United States and China.” Strategic Management Journal 31(11): 12261243.CrossRefGoogle Scholar
Cheema, G. S., and Rondinelli, D. A. (eds.) (2007). Decentralizing Governance: Emerging Concepts and Practices. Washington, DC: Brookings Institution Press.Google Scholar
Chung, W., and Song, J. (2004). “Sequential Investment, Firm Motives, and Agglomeration of Japanese Electronics Firms in the United States.” Journal of Economics and Management Strategy 13(3): 539560.CrossRefGoogle Scholar
Ciccone, A., and Papaioannou, E. (2007). “Red Tape and Delayed Entry.” Journal of the European Economic Association 5(2–3): 444458.CrossRefGoogle Scholar
Coase, R., and Wang, N. (2012). How China Became Capitalist. New York, NY: Palgrave Macmillan.CrossRefGoogle Scholar
Crémer, J. (1995). “Arm’s Length Relationships.” Quarterly Journal of Economics 110(2): 275295.CrossRefGoogle Scholar
Dai, L., Eden, L., and Beamish, P. W. (2013). “Place, Space, and Geographical Exposure: Foreign Subsidiary Survival in Conflict Zones.” Journal of International Business Studies 44(6): 554578.CrossRefGoogle Scholar
Davoodi, H., and Zou, H. F. (1998). “Fiscal Decentralization and Economic Growth: A Cross-Country Study.” Journal of Urban Economics 43(2): 244257.CrossRefGoogle Scholar
De Soto, H. (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. London: Basic Books.Google Scholar
Dell, M. (2010). “The Persistent Effects of Peru’s Mining Mita.” Econometrica 78(6): 18631903.Google Scholar
Demurger, S. (2001). “Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?Journal of Comparative Economics 29(1): 95117.CrossRefGoogle Scholar
Desai, M., Gompers, P., and Lerner, J. (2003). “Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe.” NBER Working Paper 10165.CrossRef
Dixit, A. K. (2007). Lawlessness and Economics: Alternative Modes of Governance. Princeton, NJ: Princeton University Press.Google Scholar
Dixit, A. (2009). “Governance Institutions and Economic Activity.”American Economic Review 99(1): 324.CrossRefGoogle Scholar
Djankov, S., La Porta, R., Lopez-de-Silanes, F., and Shleifer, A. (2002). “The Regulation of Entry.” Quarterly Journal of Economics 117(1): 137.CrossRefGoogle Scholar
Djankov, S., La Porta, R., Lopez-de-Silanes, F., and Shleifer, A. (2008). “The Law and Economics of Self-Dealing.” Journal of Financial Economics 88(3): 430465.CrossRefGoogle Scholar
Drabek, Z., and Payne, W. (2002). “The Impact of Transparency on Foreign Direct Investment.” Journal of Economic Integration 17(4): 777810.CrossRefGoogle Scholar
Dreher, A. (2006). “Power to the People? The Impact of Decentralization on Governance.” Swiss Institute for Business Cycle Research (KOF) Working Paper 121.CrossRef
Dunning, J. H. (2000). “The Eclectic Paradigm As an Envelope for Economic and Business Theories of MNE Activity.” International Business Review 9(2): 163190.CrossRefGoogle Scholar
Dunning, J. H. (2001). “The Eclectic (OLI) Paradigm of International Production: Past, Present and Future.” International Journal of the Economics of Business 8(2): 173190.CrossRefGoogle Scholar
The Economist (2007). “The Fading Lustre of Clusters.” October 11. www.economist.com/node/9928211. Accessed Sept. 15, 2016.
Ekholm, K., Forslid, R., and Markusen, J. R. (2007). “Export‐Platform Foreign Direct Investment.” Journal of the European Economic Association 5(4): 776795.CrossRefGoogle Scholar
Enikolopov, R. and Zhuravskaya, E. (2007). “Decentralization and Political Institutions.” Journal of Public Economics 91(11–12): 22612290.CrossRefGoogle Scholar
Epple, D., and Zelenitz, A. (1981a). “The Implications of Competition among Jurisdictions: Does Tiebout Need Politics?Journal of Political Economy 89(6): 11971217.CrossRefGoogle Scholar
Epple, D., and Zelenitz, A. (1981b). “The Roles of Jurisdictional Competition and of Collective Choice Institutions in the Market for Local Public Goods.” American Economic Review 71(2): 8792.Google Scholar
Estache, A., and Sinha, S. (1999). Does Decentralization Increase Spending on Public Infrastructure? Washington, DC: World Bank Publications.CrossRefGoogle Scholar
Fairbanks, M., and Lindsay, S. (1997). Plowing the Sea: Nurturing the Hidden Sources of Growth in the Developing World. Cambridge, MA: Harvard Business Press.Google Scholar
Falleti, T. G. (2005). “A Sequential Theory of Decentralization: Latin American Cases in Comparative Perspective.” American Political Science Review 99(3): 327346.CrossRefGoogle Scholar
Fan, C. S., Lin, C., and Treisman, D. (2009). “Political Decentralization and Corruption: Evidence from Around the World.” Journal of Public Economics 93(1): 1434.CrossRefGoogle Scholar
Fedderke, J. W., Perkins, P., and Luiz, J. M. (2006). “Infrastructural Investment in Long-Run Economic Growth: South Africa 1875–2001.” World Development 34(6): 10371059.CrossRefGoogle Scholar
Ferraz, C., and Finan, F. (2011). “Electoral Accountability and Corruption: Evidence from the Audits of Local Governments.” American Economic Review 101(4): 12741311.CrossRefGoogle Scholar
Field, E. (2005). “Property Rights and Investment in Urban Slums.Journal of the European Economic Association Papers and Proceedings. May 2005, 3(2–3): 279290.CrossRefGoogle Scholar
Fisman, R., and Allende, V. S. (2010). “Regulation of Entry and the Distortion of Industrial Organization.” Journal of Applied Economics 13(1): 91111.CrossRefGoogle Scholar
Fisman, R., and Gatti, R. (2002). “Decentralization and Corruption: Evidence across Countries.” Journal of Public Economics 83(3): 325345.CrossRefGoogle Scholar
Francken, N., Minten, B., and Swinnen, J. F. (2009). “Media, Monitoring, and Capture of Public Funds: Evidence from Madagascar.” World Development 37(1): 242255.CrossRefGoogle Scholar
Fukuyama, F. (2013). “What Is Governance?Governance 26(3): 347368.CrossRefGoogle Scholar
Galiani, S., and Schargrodsky, E. (2010). “Property Rights for the Poor: Effects of Land Titling.” Journal of Public Economics 94(9): 700729.CrossRefGoogle Scholar
Gallup, J. L., Sachs, J. D., and Mellinger, A. D. (1999). “Geography and Economic Development.” International Regional Science Review 22(2): 179232.CrossRefGoogle Scholar
Geddes, B. (1995). “A Comparative Perspective on the Leninist Legacy in Eastern Europe.” Comparative Political Studies 28(2): 239274.CrossRefGoogle Scholar
Gelos, R. G., and Wei, S. J. (2005). “Transparency and International Portfolio Holdings.” Journal of Finance 60(6): 29873020.CrossRefGoogle Scholar
Ghemawat, P. (2001). “Distance Still Matters.” Harvard Business Review 79(8): 137147.Google ScholarPubMed
Gennaioli, N., Porta, R. L., Lopez-de-Silanes, F., and Shleifer, A. (2011). “Human Capital and Regional Development.” NBER Working Paper 17158.CrossRef
Goerzen, A., Asmussen, C. G., and Nielsen, B. B. (2013). “Global Cities and Multinational Enterprise Location Strategy.” Journal of International Business Studies 44(5): 427450.CrossRefGoogle Scholar
Green, A. (2005). “Managing Human Resources in a Decentralized Context.” In White, R. and Smoke, P. (eds.), East Asia Decentralizes: Making Local Government Work in Asia (pp. 129–155). Washington, DC: World Bank Publications.Google Scholar
Grindle, M. S. (2007). Going Local: Decentralization, Democratization, and the Promise of Good Governance. Princeton, NJ: Princeton University Press.Google Scholar
Gurgur, T., and Shah, A. (2005). Localization and Corruption: Panacea or Pandora’s Box? (Vol. 3486). Washington, DC: World Bank Publications.CrossRefGoogle Scholar
Hankla, C. R. (2009). “When Is Fiscal Decentralization Good for Governance?Publius: Journal of Federalism 39(4): 632650.CrossRefGoogle Scholar
Henderson, J. V., and Kuncoro, A. (2004). “Corruption in Indonesia.” NBER Working Paper 10674.CrossRef
Henisz, W. J. (2000). “The Institutional Environment for Economic Growth.” Economics and Politics 12(1): 131.CrossRefGoogle Scholar
Hollyer, J. R., Rosendorff, B. P., and Vreeland, J. R. (2011). “Democracy and Transparency.” Journal of Politics 73(4): 11911205.CrossRefGoogle Scholar
Holmes, T. J. (1998). “The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders.” Journal of Political Economy 106(4): 667705.CrossRefGoogle Scholar
Iarossi, G. (2013). “Measuring Competitiveness at the Subnational Level: The Case of 37 Nigerian States.” Journal of CENTRUM Cathedra: The Business and Economics Research Journal 6(2): 193218.CrossRefGoogle Scholar
Inman, R. P., and Rubinfeld, D. L. (1997). “Rethinking Federalism.” Journal of Economic Perspectives 11(4): 4364.CrossRefGoogle Scholar
Iranzo, S., and Peri, G. (2009). “Schooling Externalities, Technology, and Productivity: Theory and Evidence from US States.” Review of Economics and Statistics 91(2): 420431.CrossRefGoogle Scholar
Jensen, N. M., Malesky, E., Medina, M., and Ozdemir, U. (2014). “Pass the Bucks: Credit, Blame, and the Global Competition for Investment.” International Studies Quarterly 58(3): 433447.CrossRefGoogle Scholar
Jensen, N. M., Malesky, E. J., and Walsh, M. (2015). “Competing for Global Capital or Local Voters? The Politics of Business Location Incentives.” Public Choice 164(3–4): 331356.CrossRefGoogle Scholar
Jensen, N. M. and Malesky, E. J. (2018). Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain. New York: Cambridge University Press.CrossRefGoogle Scholar
Johnson, S., McMillan, J., and Woodruff, C. (2002). “Property Rights and Finance.” American Economic Review 92(5): 13351356.CrossRefGoogle Scholar
Keefer, P., and Knack, S. (1997). “Why Don’t Poor Countries Catch Up? A Cross‐National Test of an Institutional Explanation.” Economic Inquiry 35(3): 590602.CrossRefGoogle Scholar
Kessing, S. G., Konrad, K. A., and Kotsogiannis, C. (2007). “Foreign Direct Investment and the Dark Side of Decentralization.” Economic Policy 22(49): 670.CrossRefGoogle Scholar
Klapper, L., Laeven, L., and Rajan, R. (2006). “Entry Regulation As a Barrier to Entrepreneurship.” Journal of Financial Economics 82(3): 591629.CrossRefGoogle Scholar
Krugman, P. (1991). “Increasing Returns and Economic Geography.” Journal of Political Economy 99(3): 483499.CrossRefGoogle Scholar
La Porta, R., and Shleifer, A. (2008). “The Unofficial Economy and Economic Development.” In Brookings Papers on Economic Activity (pp. 275364). Washington, DC: Brookings Institution Press.Google Scholar
Landry, P. F. (2008). Decentralized Authoritarianism in China. New York, NY: Cambridge University Press.CrossRefGoogle Scholar
Lee, R. (2003). “The Demographic Transition: Three Centuries of Fundamental Change.” Journal of Economic Perspectives 17(4): 167190.CrossRefGoogle Scholar
Lee, R., and Mason, A. (2006). “What Is the Demographic Dividend?Finance and Development 43(3): 16.Google Scholar
Levine, R. (1999). “Law, Finance, and Economic Growth.” Journal of Financial Intermediation 8(1): 835.CrossRefGoogle Scholar
Li, H., and Zhou, L. A. (2005). “Political Turnover and Economic Performance: The Incentive Role of Personnel Control in China.” Journal of Public Economics 89(9): 17431762.CrossRefGoogle Scholar
Libman, A. (2013). “Natural Resources and Sub-National Economic Performance: Does Sub-National Democracy Matter?Energy Economics 37: 8299.CrossRefGoogle Scholar
Lin, J. Y., and Liu, Z. (2000). “Fiscal Decentralization and Economic Growth in China.” Economic Development and Cultural Change 49(1): 121.CrossRefGoogle Scholar
Lorentzen, P., McMillan, J., and Wacziarg, R. (2008). “Death and Development.” Journal of Economic Growth 13(2): 81124.CrossRefGoogle Scholar
Ma, X., Tong, T. W., and Fitza, M. (2013). “How Much Does Subnational Region Matter to Foreign Subsidiary Performance? Evidence from Fortune Global 500 Corporations’ Investment in China.” Journal of International Business Studies 44(1): 6687.CrossRefGoogle Scholar
Malesky, E., McCulloch, N., and Nhat, N. D. (2015). “The Impact of Governance and Transparency on Firm Investment in Vietnam.” Economics of Transition 23(4): 677715.CrossRefGoogle Scholar
Malesky, E. J., and Merchant-Vega, N. (2011). “A Peek under the Engine Hood: The Methodology of Subnational Economic Governance Indices.” Hague Journal on the Rule of Law 3(2): 186219.Google Scholar
Malesky, E. J., and Taussig, M. D. (2009a). “Out of the Gray: The Impact of Provincial Institutions on Business Formalization in Vietnam.” Journal of East Asian Studies 9(2): 249290.CrossRefGoogle Scholar
Malesky, E. J., and Taussig, M. D. (2009b). “Where Is Credit Due? Legal Institutions, Connections, and the Efficiency of Bank Lending in Vietnam.” Journal of Law, Economics, and Organization 25(2): 535578.CrossRefGoogle Scholar
Maloney, W. F., and Valencia Caicedo, F. (2016). “The Persistence of (Subnational) Fortune.” The Economic Journal (Jan.). 10.1111/ecoj.12276.CrossRef
Marks, G., Hooghe, L., and Schakel, A. H. (2008). “Measuring Regional Authority.” Regional and Federal Studies 18(2–3): 111121.CrossRefGoogle Scholar
Martinez-Vazquez, J., Lago-Peñas, S., and Sacchi, A. (2017). “The Impact of Fiscal Decentralization: A Survey.” Journal of Economic Surveys 31(4): 10951129.CrossRefGoogle Scholar
Martinez-Vazquez, J., and McNab, R. M. (2003). “Fiscal Decentralization and Economic Growth.” World Development 31(9): 15971616.CrossRefGoogle Scholar
Mattli, W. (2001). “Private Justice in a Global Economy: From Litigation to Arbitration.” International Organization 55(4): 919947.CrossRefGoogle Scholar
McCann, P., and Acs, Z. J. (2011). “Globalization: Countries, Cities and Multinationals.” Regional Studies 45(1): 1732.CrossRefGoogle Scholar
Jr. McLure, C. E. (1994). “The Tax Assignment Problem: Ends, Means, and Constraints.” Australian Tax Forum.
McMillan, J., and Woodruff, C. (1999). “Interfirm Relationships and Informal Credit in Vietnam.” Quarterly Journal of Economics 114(4): 12851320.CrossRefGoogle Scholar
Menes, R. (2003). “Corruption in Cities: Graft and Politics in American Cities at the Turn of the Twentieth Century.” NBER Research Paper No. 9990.CrossRef
Meyer, K. E., and Nguyen, H. V. (2005). “Foreign Investment Strategies and Sub‐National Institutions in Emerging Markets: Evidence from Vietnam.” Journal of Management Studies 42(1): 6393.CrossRefGoogle Scholar
Michalopoulos, S., and Papaioannou, E. (2013). “Pre‐Colonial Ethnic Institutions and Contemporary African Development.” Econometrica 81(1): 113152.Google ScholarPubMed
Monaghan, S., Gunnigle, P., and Lavelle, J. (2014). “Courting the Multinational: Subnational Institutional Capacity and Foreign Market Insidership.” Journal of International Business Studies 45(2): 131150.CrossRefGoogle Scholar
Newlands, D. (2003). “Competition and Cooperation in Industrial Clusters: The Implications for Public Policy.” European Planning Studies 11(5): 521532.CrossRefGoogle Scholar
Nguyen, L. P., and Anwar, S. (2011). “Fiscal Decentralisation and Economic Growth in Vietnam.” Journal of the Asia Pacific Economy 16(1): 314.CrossRefGoogle Scholar
Nordhaus, W. D. (2006). “Geography and Macroeconomics: New Data and New Findings.” Proceedings of the National Academy of Sciences of the United States of America 103(10): 35103517.CrossRefGoogle ScholarPubMed
North, D. C. (1981). Structure and Change in Economic History. New York, NY: W. W. Norton & Company.Google Scholar
Notteboom, T., and Rodrigue, J. P. (2009). “The Future of Containerization: Perspectives from Maritime and Inland Freight Distribution.” Geojournal 74(1): 722.CrossRefGoogle Scholar
Oates, W. (1972). Fiscal Decentralization. New York, NJ: Harcourt Brace Jovanovich.Google Scholar
Oates, W. E. (1999). “An Essay on Fiscal Federalism.” Journal of Economic Literature 37(3): 11201149.CrossRefGoogle Scholar
Olken, B. A. (2007). “Monitoring Corruption: Evidence from a Field Experiment in Indonesia.” Journal of Political Economy 115(2): 200249.CrossRefGoogle Scholar
Olken, B. A. and Pande, R. (2012). “Corruption in Developing Countries.” Annual Review of Economics 4(1): 479509.CrossRefGoogle Scholar
Pepinsky, T. B. (2016). “Colonial Migration and the Origins of Governance Theory and Evidence from Java.” Comparative Political Studies. doi:10.1177/0010414015626442CrossRef
Pepinsky, T. B., and Wihardja, M. M. (2011). “Decentralization and Economic Performance in Indonesia.” Journal of East Asian Studies 11(3): 3.CrossRefGoogle Scholar
Plaut, T. R., and Pluta, J. E. (1983). “Business Climate, Taxes and Expenditures, and State Industrial Growth in the United States.” Southern Economic Journal 50(1): 99119.CrossRefGoogle Scholar
Porter, M. (1998). “Clusters and the New Economics of Competition.” Harvard Business Review 76 (6): 7790.Google Scholar
Qian, Y., and Roland, G. (1998). “Federalism and the Soft Budget Constraint.” American Economic Review 88(5):11461162.Google Scholar
Rauch, J. E. (1993). “Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities.” Journal of Urban Economics 34(3): 380400.CrossRefGoogle Scholar
Reinikka, R., and Svensson, J. (2005). “Fighting Corruption to Improve Schooling: Evidence from a Newspaper Campaign in Uganda.” Journal of the European Economic Association 3(2–3): 259267.CrossRefGoogle Scholar
Rodden, J. (2004). “Comparative Federalism and Decentralization: On Meaning and Measurement.” Comparative Politics 36(4): 481500.CrossRefGoogle Scholar
Rodden, J., and Rose-Ackerman, S. (1997). “Does Federalism Preserve Markets?Virginia Law Review 83(7): 15211572.CrossRefGoogle Scholar
Rodríguez-Pose, A., and Ezcurra, R. (2011). “Is Fiscal Decentralization Harmful for Economic Growth? Evidence from the OECD Countries.” Journal of Economic Geography 11(4): 619643.CrossRefGoogle Scholar
Röller, L. H., and Waverman, L. (2001). “Telecommunications Infrastructure and Economic Development: A Simultaneous Approach.” American Economic Review 91(4): 909923.CrossRefGoogle Scholar
Schragger, R. C. (2010). “Decentralization and Development.” Virginia Law Review 96(8): 18371910.Google Scholar
Seabright, P. (1996). “Accountability and Decentralisation in Government: An Incomplete Contracts Model.” European Economic Review 40(1): 6189.CrossRefGoogle Scholar
Shleifer, A., and Vishny, R. W. (1993). “Corruption.” Quarterly Journal of Economics 108(3): 599617.CrossRefGoogle Scholar
Sobel, R. S., Dutta, N., and Roy, S. (2013). “Does Fiscal Decentralization Result in a Better Business Climate?Applied Economics Letters 20(1): 8491.CrossRefGoogle Scholar
Stasavage, D. (2003). “Transparency, Democratic Accountability, and the Economic Consequences of Monetary Institutions.” American Journal of Political Science 47(3): 389402.CrossRefGoogle Scholar
Steinnes, D. N. (1984). “Business Climate, Tax Incentives, and Regional Economic Development.” Growth and Change 15(2): 3847.CrossRefGoogle Scholar
Stopford, J. M., Strange, S., and Henley, J. S. (1991). Rival States, Rival Firms: Competition for World Market Shares (Vol. 18). Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Thiessen, U. (2000). Fiscal Federalism in Western European and Selected Other Countries: Centralization or Decentralization? What Is Better for Economic Growth? Berlin: Deutsches Institut für Wirtschaftsforschung.Google Scholar
Tiebout, C. M. (1956). “A Pure Theory of Local Expenditures.” Journal of Political Economy 64(5): 416424.CrossRefGoogle Scholar
Treisman, D. (2007). The Architecture of Government: Rethinking Political Decentralization. New York, NY: Cambridge University Press.CrossRefGoogle Scholar
Vu, T. T., Zouikri, M., and Deffains, B. (2014). “The Interrelationship between Formal and Informal Decentralization and Its Impact on Subcentral Governance Performance: the Case of Vietnam.” CESifo Economic Studies 60(3): 613652.CrossRefGoogle Scholar
Weingast, B. R. (1995). “The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development.” Journal of Law, Economics, and Organization 11(1): 131.Google Scholar
Wibbels, E. (2006). “Madison in Baghdad? Decentralization and Federalism in Comparative Politics.” Annual Review of Political Science 9: 165188.CrossRefGoogle Scholar
Wilson, J. D. and Wildasin, D. E. (2004). “Capital Tax Competition: Bane or Boon.” Journal of Public Economics 88(6): 10651091.CrossRefGoogle Scholar
World Bank Group (ed.). (2013). Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises (Vol. 11). Washington, DC: World Bank Publications.
Wunsch, J. S. (1998). “Decentralization, Local Governance and the Democratic Transition in Southern Africa: A Comparative Analysis.” African Studies Quarterly 2(1): 1945.Google Scholar
Xu, C. (2011). “The Fundamental Institutions of China’s Reforms and Development.” Journal of Economic Literature 49(4): 10761151.CrossRefGoogle Scholar
Yadav, V., and Mukherjee, B. (2015). The Politics of Corruption in Dictatorships. New York, NY: Cambridge University Press.Google Scholar
Yi, J., Chen, Y., Wang, C., and Kafouros, M. (2015). “Spillover Effects of Foreign Direct Investment: How Do Region-Specific Institutions Matter?Management International Review 55(4): 539561.CrossRefGoogle Scholar
Yu, S. H., and Shen, C. F. (2013). “Geographic Proximity and Location Choice of Foreign Direct Investment in China.” Asian Business and Management 12(3): 351380.CrossRefGoogle Scholar
Zhang, X. (2006). “Fiscal Decentralization and Political Centralization in China: Implications for Growth and Inequality.” Journal of Comparative Economics 34(4): 713726.CrossRefGoogle Scholar
1
Cited by

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×