Decentralizing Development: The Economic Impacts of Government SplitsIndian Rupee

• 成果类型: Article
• 署名作者: Dahis, Ricardo; Szerman, Christiane
• 署名单位: Monash University; University of London; London School Economics & Political Science
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20240009
• 发表日期: 2026
• 关键词: state capacity; ACCOUNTABILITY; EFFICIENCY; scale; governance; transfers; CONFLICT; POLITICS; distance; size

摘要

Changes in political boundaries aimed at devolving power to local governments are common across many countries. We examine the economic impacts of government unit creation through splitting. Exploiting reforms that led to sharp increases in the number of municipalities in Brazil, we show that voluntary splitting enlarges the public sector, enhances public service delivery, and stimulates long-term economic activity in new local governments. These gains are not offset by losses elsewhere and are stronger in peripheral, remote, and underdeveloped areas neglected by parent governments. Higher fiscal revenues and decentralized decision-making contribute to the positive effects on local economic activity. (JEL D72, H41, H75, H76, H77, Q53, R51)