Abstract
AbstractThis paper examines the relationship between fiscal decentralization—the assignment of revenue sources and expenditure functions across government levels—and government size in Moldova. The empirical results—based on data for a cross‐section of Moldovan sub‐national government in 1998—suggest that fiscal decentralization is associated with larger sub‐national governments and that the country's revenue‐sharing system imposes a constraint on sub‐national revenue mobilization capacity. Copyright © 2001 John Wiley & Sons, Ltd.
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