DT 10-23 Indicadores de desarrollo: El rol de la descentralización fiscal y la calidad de gobierno

This article provides an empirical analysis of the impact of fiscal decentralization and
quality of government on various development indicators in a sample of 61 countries over the period 1995–2019. Specifically, three development indicators are considered: human development, income inequality, and educational inequality. Based on panel data analysis, our findings confirm that both quality of government and fiscal decentralization improve human development and reduce income and educational inequalities. Additionally, we observe a positive relationship between greater public expenditure decentralization and higher levels of human development, lower income and education inequality. Finally, we note that the effect of fiscal decentralization on human development is reversed as its degree increases.