Abstract:

The project aims to study the effects of expenditure decentralization on economic growth both theoretically and empirically.

The theoretical framework we aim to develop wants to be comprehensive of all possible monotonic and non-monotonic relationships between decentralization and economic growth, which have been found in the empirical studies.

The relationship between decentralized expenditure and economic growth will be empirically investigated for European countries. In the past decades, they have been involved in a common process of decentralization under the guidance of a common cultural value, that is, the subsidiarity principle, which is also one of the most important principles in the architecture of the European Union.