Local Government Fiscal Competition in Developing Countries: The Case of Indonesia

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Date

2008

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Urban Public Economics Review

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Ce document est lié à :
http://www.redalyc.org/revista.oa

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REDALYC : Red de Revistas Científicas de América Latina y el Caribe, España y Portugal

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Red de Revistas Científicas de América Latina y el Caribe, España y Portugal

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Urban Public Economics Review

Mots-clés Und

Estudios Territoriales Tax competition Spillover Effects Spatial Lag Model Fiscal Competition Spatial Interaction

Sujets proches En

Competition (Economics) Economic competition Competitiveness (Economics)

Citer ce document

R. Renata Simatupang et al., « Local Government Fiscal Competition in Developing Countries: The Case of Indonesia », Urban Public Economics Review, ID : 10670/1.c94956...

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This paper explores the role and significance of spatial fiscal competitionamong local governments in the developing world. Although there is nowa large literature on local fiscal competition in North America andWestern Europe, little is known about the extent and significance of fiscalinteraction among local governments in the many developing countriesthat have undergone fiscal decentralization process over the last decade.This paper, in particular, examines whether jurisdictional competition (inthe forms of expenditure externalities, tax competition, and yardstickcompetition) has been present in Indonesia, a country that was stronglydecentralized starting in 2001. Our empirical results strongly suggest therelevance of fiscal competition in the case of Indonesia

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