02282cas a2200325 a 4500 AALejournalIMF022947 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400211768 1018-5941 BD-DhAAL BD-DhAAL Nakatani, Ryota. Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance / Ryota Nakatani, Qianqian Zhang, Isaura Garcia Valdes. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Does fiscal decentralization improve health and educational outcomes? Does this improvement depend on the quality of governance? How do fiscal decentralization and governance interact? We answer these questions through an instrumental variable Tobit analysis of cross-country panel data. We find negative effects of fiscal decentralization on health outcomes, which however are more than offset by better governance. Education expenditure decentralization to subnational governments enhances educational outcomes. We conclude that countries can only reap the benefits from decentralization when the quality of their governance arrangements exceeds a certain threshold. We also find that sequencing and staging of decentralization matter. Countries should improve government effectiveness and control of corruption first to maximize benefits of fiscal decentralization. Mode of access: Internet Administrative Processes in Public Organizations imf Bureaucracy imf Corruption imf Intergovernmental Relations imf State and Local Government imf Garcia Valdes, Isaura.. Zhang, Qianqian. IMF Working Papers; Working Paper ; No. 2022/111 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=111 IMF e-Library