@article{szarowsk2022does,
  title = {Does Fiscal Decentralization Matter for Economic Development? Case of the Czechia},
  author = {Irena Szarowská},
  year = 2022,
  url = {https://ibimapublishing.com/articles/JEERBE/2022/856279/},
  journal = {Journal of Eastern Europe Research in Business and Economics},
  volume = 2022,
  pages = 11,
  doi = 10.5171/2022.856279,
  abstract = {Economic growth and performance is influenced by a number of internal and external factors. The goal of the article is to explore the relationship between fiscal decentralization and economic development in the Czechia in the years 2000-2020. The article deals with territorial arrangement as the Czechia belongs to countries with the highest territorial fragmentation of municipalities and applies a combined model of fiscal federalism with relatively low fiscal decentralization. The study uses the following indicators: expenditure decentralization, revenue decentralization, intergovernmental transfer decentralization and tax revenue decentralization. Empirical tests are based on cross correlation and Granger causality methodology. The found results imply that economic growth does not relate exclusively to the degree of fiscal decentralization of a country as coefficients of correlation are very low, and decentralization revealed to be positively associated with GDP per capita but negatively associated with real GDP growth, except expenditure decentralization positively correlated in both cases. The relationship is stronger for economic maturity than for economic growth and economic performance comes first followed by decentralization.},
  keywords = {fiscal decentralization, fiscal federalism, subnational governments, economic growth.},
  note = Article ID: 856279
}