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Measuring the impact of fiscal decentralization on local developement in Vietnam
Date Issued:
2021
Author(s):
Bùi, Mạnh Tiến
FSPPM
Abstract:
The research uses panel data of 63 provinces of Viet Nam throughout 2011 – 2019. The empirical models are developed upon the Cobb-Douglas production function and Stochastic Frontier Analysis method then apply several panel-specific regression methods to deal with problems of heteroskedasticity, cross-sectional dependence, and autocorrelation. The research findings support the positive impacts of fiscal decentralization in promoting both economic and social outputs, as well as the efficiency of resource utilization for development targets. However, there are certain conditions needed to be considered to exploit the full potentials of fiscal decentralization at the localities, which require proper responses from both the central government and the local authorities.