Fiscal decentralization and economic growth in Ecuador: Panel data on provincial council and municipalities since a heterodox vision
Amílcar Marcelo Varela Enríquez 1 , Gustavo Adrián Salazar Espinoza2
1Central University of Ecuador / Institute of Higher National Studies, Ecuador
2Central University of Ecuador/ National Polytechnic School, Ecuador
Article History
Received: 24 November 2020 Revised: 4 March 2021 Accepted: 15 March 2021 Available Online: 18 March 2021
Keywords: Fiscal decentralization, economic growth, panel data, GDP per capita, public investment.
JEL classification: O47, H77, C33
Citation: Varela, M. & Salazar, G. (2021). Fiscal decentralization and economic growth in Ecuador: Panel data on provincial council and municipalities since a heterodox vision, Review of Socio-Economic Perspectives, Vol 6(1), 35-51
Abstract
The objective of the present investigation tries to determine the nature of relationship between fiscal decentralization and economic growth for Ecuadorian case from heterodox perspective. A panel data model is used, where the dependent variable being GDP pc (proxy for economic growth), and variables of interest and control (proxies of fiscal decentralization) are public investment, public consumption, the export ratio, poverty and inflation. The results indicate that greater fiscal decentralization affects economic growth, in which the public investment of the Decentralized Autonomous Governments (GADs) from the application of Organic Code of Territorial Organization, Autonomy and Decentralization (COOTAD) since 2010 has allowed its impact on the provincial GDP per capita to be stronger.
E-mail: marcelo.varela@iaen.edu.ec & ORCID: https://orcid.org/0000-0003-4721-8229
E-mail: adriansalazar20@hotmail.com & ORCID: https://orcid.org/0000-0003-4942-0842
DOI: https://doi.org/10.19275/RSEP106
Article Type: Original Paper
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