Determinants of fiscal decentralization in OECD countries

With the idea that decentralised delivery of public goods and services increase economic efficiency and social welfare, activities are carried out in many countries to increase the share of lower level governments in the fulfillment of economic functions. In this study, the effects of income, area, population, urbanization, ethnic fractionalization, human development, globalization, institutional factors, income distribution, economic stability and participatory budgeting on fiscal decentralization are examined empirically using the data of OECD countries between 2000-2016 and the Panel Corrected Standard Errors method.