FISCAL FEDERALISM AND COMPARATIVE RESEARCH: CONCEPTUAL AND ANALYTICAL ISSUES

By

Tatchalerm Sudhipongpracha

College of Local Administration, Khon Kaen University
123 Khon Kaen University, Muang District, Khon Kaen, 40002, THAILAND
ts2277@gmail.com

Abstract

In today’s world, the socioeconomic dynamics induced by globalism diminishes the control and capacity of many centralized and formerly centralized states. In response, large-scale administrative reforms have been adopted—especially by East Asian countries—to enhance government efficiency and effectiveness. As an essential part of each country’s administrative reform efforts, decentralization measures have been designed to realign the power relations between national and sub-national governments. Fiscal decentralization in particular has affected the way in which public sector resources are shared and allocated between different levels of government. This paper discusses the conceptual and analytical issues pertinent to the changes caused by fiscal decentralization around the world. The discussion proceeds in two steps. First, different theories and concepts of fiscal federalism are compared and contrasted to reveal the progression of ideas and debates surrounding the increasingly complex dimensions of intergovernmental fiscal relations. Second, the paper delineates a comparative research agenda for the studies of intergovernmental fiscal relations in both unitary and federal states.

Abstract

In today’s world, the socioeconomic dynamics induced by globalism diminishes the control and capacity of many centralized and formerly centralized states. In response, large-scale administrative reforms have been adopted—especially by East Asian countries—to enhance government efficiency and effectiveness. As an essential part of each country’s administrative reform efforts, decentralization measures have been designed to realign the power relations between national and sub-national governments. Fiscal decentralization in particular has affected the way in which public sector resources are shared and allocated between different levels of government. This paper discusses the conceptual and analytical issues pertinent to the changes caused by fiscal decentralization around the world. The discussion proceeds in two steps. First, different theories and concepts of fiscal federalism are compared and contrasted to reveal the progression of ideas and debates surrounding the increasingly complex dimensions of intergovernmental fiscal relations. Second, the paper delineates a comparative research agenda for the studies of intergovernmental fiscal relations in both unitary and federal states.

Keywords:      Fiscal Federalism, Fiscal Decentralization, Comparative Research