The impact of local decentralization on economic growth: Evidence from U.S. counties

George W. Hammond, Mehmet S. Tosun

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

We analyze the impact of fiscal decentralization on U.S. county population, employment, and real income growth. Our findings suggest that government organization matters for local economic growth, but that the impacts vary by government unit and by economic indicator. We find that single-purpose governments per square mile have a positive impact on metropolitan population and employment growth, but no significant impact on nonmetropolitan counties. In contrast, the fragmentation of general-purpose governments per capita has a negative impact on employment and population growth in nonmetropolitan counties. Our results suggest that local government decentralization matters differently for metropolitan and nonmetropolitan counties.

Original languageEnglish (US)
Pages (from-to)47-64
Number of pages18
JournalJournal of Regional Science
Volume51
Issue number1
DOIs
StatePublished - Feb 1 2011
Externally publishedYes

Fingerprint

decentralization
economic growth
employment trend
evidence
population growth
metropolitan population
local government
fragmentation
income
county
organization
economics

ASJC Scopus subject areas

  • Development
  • Environmental Science (miscellaneous)

Cite this

The impact of local decentralization on economic growth : Evidence from U.S. counties. / Hammond, George W.; Tosun, Mehmet S.

In: Journal of Regional Science, Vol. 51, No. 1, 01.02.2011, p. 47-64.

Research output: Contribution to journalArticle

@article{054371538cb5412fb8bd22bdca1c2666,
title = "The impact of local decentralization on economic growth: Evidence from U.S. counties",
abstract = "We analyze the impact of fiscal decentralization on U.S. county population, employment, and real income growth. Our findings suggest that government organization matters for local economic growth, but that the impacts vary by government unit and by economic indicator. We find that single-purpose governments per square mile have a positive impact on metropolitan population and employment growth, but no significant impact on nonmetropolitan counties. In contrast, the fragmentation of general-purpose governments per capita has a negative impact on employment and population growth in nonmetropolitan counties. Our results suggest that local government decentralization matters differently for metropolitan and nonmetropolitan counties.",
author = "Hammond, {George W.} and Tosun, {Mehmet S.}",
year = "2011",
month = "2",
day = "1",
doi = "10.1111/j.1467-9787.2010.00683.x",
language = "English (US)",
volume = "51",
pages = "47--64",
journal = "Journal of Regional Science",
issn = "0022-4146",
publisher = "Wiley-Blackwell",
number = "1",

}

TY - JOUR

T1 - The impact of local decentralization on economic growth

T2 - Evidence from U.S. counties

AU - Hammond, George W.

AU - Tosun, Mehmet S.

PY - 2011/2/1

Y1 - 2011/2/1

N2 - We analyze the impact of fiscal decentralization on U.S. county population, employment, and real income growth. Our findings suggest that government organization matters for local economic growth, but that the impacts vary by government unit and by economic indicator. We find that single-purpose governments per square mile have a positive impact on metropolitan population and employment growth, but no significant impact on nonmetropolitan counties. In contrast, the fragmentation of general-purpose governments per capita has a negative impact on employment and population growth in nonmetropolitan counties. Our results suggest that local government decentralization matters differently for metropolitan and nonmetropolitan counties.

AB - We analyze the impact of fiscal decentralization on U.S. county population, employment, and real income growth. Our findings suggest that government organization matters for local economic growth, but that the impacts vary by government unit and by economic indicator. We find that single-purpose governments per square mile have a positive impact on metropolitan population and employment growth, but no significant impact on nonmetropolitan counties. In contrast, the fragmentation of general-purpose governments per capita has a negative impact on employment and population growth in nonmetropolitan counties. Our results suggest that local government decentralization matters differently for metropolitan and nonmetropolitan counties.

UR - http://www.scopus.com/inward/record.url?scp=79551638413&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79551638413&partnerID=8YFLogxK

U2 - 10.1111/j.1467-9787.2010.00683.x

DO - 10.1111/j.1467-9787.2010.00683.x

M3 - Article

AN - SCOPUS:79551638413

VL - 51

SP - 47

EP - 64

JO - Journal of Regional Science

JF - Journal of Regional Science

SN - 0022-4146

IS - 1

ER -