%0 Journal Article
%T FISCAL DECENTRALIZATION IN EASTERN EUROPE: TRENDS AND SELECTED ISSUES
%A Aleksander ARISTOVNIK
%J Transylvanian Review of Administrative Sciences
%D 2012
%I Babes Bolyai University
%X The article attempts to provide an overviewof the  scal decentralization process in emergingmarket economies in Eastern Europe in the last20 years. Using the methodology developed by Vo(2009), the article assesses the degree of  scaldecentralization in the region. Conceptually, the measurement of  scal decentralization focuseson  scal autonomy and on the  scal importanceof subnational governments. The empiricalanalysis reveals that the highest level of  scaldecentralization (centralization) is found inRussia (Armenia) among non-EU members andin Estonia (Slovak Republic) among EU members of the Eastern European countries. In addition,the empirical results show that, in general, thedegree of  scal decentralization is higher indeveloped OECD countries than in most EasternEuropean countries (EECs). However, in contrastto our expectations, there has been an alarmingdownward trend of the  scal decentralizationindex (FDI) in most countries of the region over the last two decades. Moreover, the article alsoexamines the effects of  scal decentralization on growth and public sector size in EECs. The analysisprovides some evidence that increases in publicsector decentralization are associated with higher income levels. Finally, our results suggest that scal decentralization in EECs generally leads toan increase in the size of government, albeit thereare some signi cant differences between EU andnon-EU member states.
%K scal decentralization
%K scal autonomy
%K scal importance
%K Eastern European countries
%K economic growth
%K public sector size
%U http://rtsa.ro/en/files/TRAS-37E-2012-1ARISTOVNIK.pdf