| Previous studies have shown that fiscal decentralisation has positive,negative and neutral impact on economic growth in different countries.This paper examines empirical relationship between fiscal decentralisation and economic growth in Russia employing panel data for 78 Russian regions over the period 2001-2014.In our study,we applied fixed-effects regression model to investigate the relationship between decentralisation and growth.In addition,first-differenced GMM and system GMM estimators are employed with annual as well as triennial data to solve endogeneity problem.The results suggest that revenue and expenditure decentralisation significantly and positively associate with Russian economic growth.Moreover,sensitivity analyses are checked employing different control variable,estimation methods and time intervals.The results remain the same positive association of decentralisation with growth,and this is a confirmation of robustness of our findings. |
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