Open AccessArticle
The Effects of Fiscal Policy on Non-Oil Economic Growth
Economies 2018, 6(2), 27; doi:10.3390/economies6020027 -
Abstract
We investigate non-oil sector effects of fiscal policy in Azerbaijan over a long time period in which a recent low oil prices sample is incorporated. To obtain robust empirical findings, we use different test and estimation methods as well as address small-sample bias
[...] Read more.
We investigate non-oil sector effects of fiscal policy in Azerbaijan over a long time period in which a recent low oil prices sample is incorporated. To obtain robust empirical findings, we use different test and estimation methods as well as address small-sample bias issues in the extended production function framework. Results show that fiscal policy has a statistically significant positive impact on the non-oil sector both in the long and short run. However, the size of the impact is small compared to the findings of earlier studies due to, we believe, the low oil-price environment and different specifications used. Azerbaijani policymakers should take measures to compensate for the declining share of oil revenues in government revenues. They may consider increasing tax rates, import and export fees, energy and other tariffs as rapid remedies to fill the budget but these measures might hurt economic development. Alternative and less harmful remedies would be optimizing government spending, strongly monitoring ongoing projects, and phasing out social and infrastructure projects, which make lower contributions to growth. Our research opens the way for further investigation of this topic for the oil exporting economies in the future. Full article
Figures

Figure 1

Open AccessArticle
Shaking up the Firm Survival: Evidence from Yogyakarta (Indonesia)
Economies 2018, 6(2), 26; doi:10.3390/economies6020026 -
Abstract
The survival of firms under changes in the business environment caused by exogenous shocks can be explained using economic Darwinism. Exogenous shocks can cause ‘cleansing effects’. Shocks clean out unproductive firms so that available resources are allocated to the remaining more productive firms.
[...] Read more.
The survival of firms under changes in the business environment caused by exogenous shocks can be explained using economic Darwinism. Exogenous shocks can cause ‘cleansing effects’. Shocks clean out unproductive firms so that available resources are allocated to the remaining more productive firms. However, shocks may also force out young firms that have the potential to be highly productive in the future, which will lower the average productivity of industries. This is known as the ‘scarring effect’ of shocks. Therefore, the overall impact of exogenous shocks on the allocation of resources depends on the relative magnitude of cleansing and scarring effects. This paper investigates this natural selection mechanism after the Yogyakarta earthquake in 2006. The study uses data on medium-sized and large manufacturing firms in the Yogyakarta province collected by the Indonesian Statistical Agency. The main finding of this paper is that firms that had higher productivity prior to the earthquake in 2006 were more likely to survive after the earthquake, which suggests the existence of a natural selection mechanism, specifically cleansing effects. There is no evidence of the scarring effects of the earthquake on the new entrants. Full article
Figures

Figure 1

Open AccessArticle
Crime Statistics: Modeling Theft in Favour of Victims’ Choices
Economies 2018, 6(2), 25; doi:10.3390/economies6020025 -
Abstract
The number of reported property thefts has dropped steeply in many European countries over the last 15 years. One reason for this could be that people have become more honest, which would imply that fewer resources should be allocated to the police and
[...] Read more.
The number of reported property thefts has dropped steeply in many European countries over the last 15 years. One reason for this could be that people have become more honest, which would imply that fewer resources should be allocated to the police and to crime prevention measures. In this paper, we have elaborated upon some alternative explanatory factors behind the decrease in the number of reported crimes within a utility-maximizing model where both thefts and victims are behaving rationally. Increased time and travelling costs for reporting, economic growth and a lower rate of solving crime could all explain the development in the reported crime rate. Within this theoretical approach, the nominal crime rate could decrease, while the real crime rate either remains constant or even increases. Applying the number of reported thefts as the sole or main parameter for allocating resources for crime prevention measures may result in a sub-optimal resource allocation. Developments in the number of reported thefts must therefore be supplemented by other indicators to provide a better basis to ensure an optimal allocation of police resources to combat theft. Estimates of unreported crimes must also be included as part of the basis of these allocation decisions. Full article
Figures

Figure 1

Open AccessArticle
The Basic, the Solid, the Site-Specific and the Full or Total Index of Sustainable Economic Welfare (ISEW) for Turkey
Economies 2018, 6(2), 24; doi:10.3390/economies6020024 -
Abstract
The Index of Sustainable Economic Welfare (ISEW) has been calculated in various ways for various countries and for various time spans. Based on the degree of objectivity, the Basic, Solid, and Site-specific ISEW are separated, whose sum constitutes the Total or Full ISEW.
[...] Read more.
The Index of Sustainable Economic Welfare (ISEW) has been calculated in various ways for various countries and for various time spans. Based on the degree of objectivity, the Basic, Solid, and Site-specific ISEW are separated, whose sum constitutes the Total or Full ISEW. The paper proposes some guidelines for countries and smaller forms of state organizations, to apply and re-state their sustainable GDP, thus rendering it a useful figure as reported vis-à-vis the long established GDP. To demonstrate this theoretical advancement, the Turkish economy is used for an application. Turkey is a dynamic emerging economy, given its rapid GDP increase over the past two decades and the population increase on the one hand. On the other hand, it is afflicted by social inequalities and environmental problems, which if they were to be abated, they would certainly deduct from the increased income achieved so far. Full article
Figures

Figure 1

Open AccessArticle
The Rental Prices of the Apartments under the New Tourist Environment: A Hedonic Price Model Applied to the Spanish Sun-and-Beach Destinations
Economies 2018, 6(2), 23; doi:10.3390/economies6020023 -
Abstract
The purpose of this article is to estimate a model of hedonic prices that is applied to apartments that are rented in the Spanish coastline, based on data that has been provided by Tecnitasa. The results confirm the relevance of the determinants that
[...] Read more.
The purpose of this article is to estimate a model of hedonic prices that is applied to apartments that are rented in the Spanish coastline, based on data that has been provided by Tecnitasa. The results confirm the relevance of the determinants that were previously identified by the literature and point to new determinants, such as tourism competitiveness and online reputation, as future drivers of prices in the new tourist environment. Full article
Open AccessArticle
The Relationship between Export and Growth: Panel Data Evidence from Turkish Sectors
Economies 2018, 6(2), 22; doi:10.3390/economies6020022 -
Abstract
The aim of this study is to examine the impact of sectoral exports on economic growth in Turkey over the period 2000–2015. To this end, empirical models are estimated using panel data techniques in which quarterly data are gathered for eight sectors. Findings
[...] Read more.
The aim of this study is to examine the impact of sectoral exports on economic growth in Turkey over the period 2000–2015. To this end, empirical models are estimated using panel data techniques in which quarterly data are gathered for eight sectors. Findings in the case of the pooled panel indicate the validity of the export-led growth hypothesis. Disaggregated evidences, on the other hand, reveal the validity of export-led growth hypothesis in the case of (i) agriculture and forestry; (ii) fishing; (iii) mining and quarrying; (iv) manufacturing; (v) electricity, gas and water supply; and (vi) wholesale and retail trade while it is found to be invalid in the case of (i) real estate, renting and business activities; and (ii) other community, social and personal service activities. The sectors that have the highest growth contributions are listed as follows: (i) agriculture and forestry; (ii) mining and quarrying; and (iii) manufacturing. Causality results also provide a strong support in favor of an export-led growth hypothesis for four sectors in addition to the feedback hypothesis which is valid for three sectors. Full article
Open AccessArticle
Money and Pay-As-You-Go Pension
Economies 2018, 6(2), 21; doi:10.3390/economies6020021 -
Abstract
This paper presents examination of how a pension policy affects income growth and the inflation rate in a utility model. Even if the contribution rate of pension increases because of an aging society, an aging society increases income growth and the inflation rate.
[...] Read more.
This paper presents examination of how a pension policy affects income growth and the inflation rate in a utility model. Even if the contribution rate of pension increases because of an aging society, an aging society increases income growth and the inflation rate. Moreover, this paper presents examination of the optimal growth rate of the money supply. Because of the pension policy, the optimal growth rate of money stock changes. This result is intuitive because a pay-as-you-go pension changes capital accumulation. Therefore, the income growth rate should be changed to raise the welfare of all generations. Full article
Figures

Figure 1

Open AccessArticle
Identifying Sustainability and Knowledge Gaps in Socio-Economic Pathways Vis-à-Vis the Sustainable Development Goals
Economies 2018, 6(2), 20; doi:10.3390/economies6020020 -
Abstract
With the Sustainable Development Goals (SDGs), the global community has set itself an ambitious development agenda. Current analytical and quantitative modeling capabilities fall short of being able to capture all 17 SDGs and their targets. Even highly ambitious and optimistic pathways currently used
[...] Read more.
With the Sustainable Development Goals (SDGs), the global community has set itself an ambitious development agenda. Current analytical and quantitative modeling capabilities fall short of being able to capture all 17 SDGs and their targets. Even highly ambitious and optimistic pathways currently used in research, such as SSP1/SSP1-2.6, do not meet all SDGs (sustainability gaps) and fail to provide information on some of them (knowledge gaps). We show that for research and modeling purposes, the SDG targets can serve as a basis but need to be operationalized to reduce complexity and also to account for long-term sustainability concerns beyond 2030. We have explored here the requirements for assessing more comprehensively the sustainability of development pathways, guided by holistic interpretation of the SDGs to enable an assessment of the potential embedded synergies and trade-offs between the economic, social and environmental objectives. We see this as call for action for science to work on filling these gaps. At the same time, this is also a call for policy makers and the global community to close the sustainability gaps that emerge from such analysis. We anticipate that such analysis will provide useful information for policy advice and investment decisions during implementation of the UN 2030 Agenda. Full article
Figures

Figure 1

Open AccessArticle
The Environmental Consequences of Growth: Empirical Evidence from the Republic of Kazakhstan
Economies 2018, 6(1), 19; doi:10.3390/economies6010019 -
Abstract
The main objective of this paper is to examine the effect growth has on CO2 emissions in Kazakhstan, controlling for energy consumption, in the autoregressive distributed lag (ARDL) cointegration framework. We find that the environmental Kuznets curve (EKC) hypothesis seems to hold
[...] Read more.
The main objective of this paper is to examine the effect growth has on CO2 emissions in Kazakhstan, controlling for energy consumption, in the autoregressive distributed lag (ARDL) cointegration framework. We find that the environmental Kuznets curve (EKC) hypothesis seems to hold for Kazakhstan; this effect at a low level of income increases CO2 but at a high level decreases it. We also find that energy consumption increases CO2 emissions. Full article
Figures

Figure 1

Open AccessArticle
The Impacts of Domestic and Foreign Direct Investments on Economic Growth in Saudi Arabia
Economies 2018, 6(1), 18; doi:10.3390/economies6010018 -
Abstract
This paper investigates the causal links between domestic capital investment, foreign direct investment (FDI), and economic growth in Saudi Arabia over the period 1970–2015 by using the autoregressive distributed lag (ARDL) bounds testing to cointegration approach. The fully modified ordinary least squares (FMOLS),
[...] Read more.
This paper investigates the causal links between domestic capital investment, foreign direct investment (FDI), and economic growth in Saudi Arabia over the period 1970–2015 by using the autoregressive distributed lag (ARDL) bounds testing to cointegration approach. The fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and the canonical cointegrating regression (CCR) are employed to check the robustness of the ARDL long run estimates. The results show that in the long term there are negative bidirectional causality between non-oil GDP growth and FDI, negative bidirectional causality between non-oil GDP growth and domestic capital investment, and bidirectional causality between FDI and domestic capital investment. FDI affects negatively domestic capital investment in the short run, whereas domestic capital investment affects negatively FDI in the long run. Both finance development and trade openness affect positively non-oil GDP growth, FDI inflows and domestic capital investment in the long run. The findings are important for Saudi policy makers to undertake the effective policies that can promote and lead domestic and foreign investments to enhance economic growth in the country. Full article
Figures

Figure 1

Open AccessArticle
Sustainability Performance of an Italian Textile Product
Economies 2018, 6(1), 17; doi:10.3390/economies6010017 -
Abstract
Companies are more and more interested in the improvement of sustainability performance of products, services and processes. For this reason, appropriate and suitable assessment tools supporting the transition to a green economy are highly necessary. Currently, there are a number of methods and
[...] Read more.
Companies are more and more interested in the improvement of sustainability performance of products, services and processes. For this reason, appropriate and suitable assessment tools supporting the transition to a green economy are highly necessary. Currently, there are a number of methods and approaches for assessing products’ environmental impact and improving their performances; among these, the Life Cycle Thinking (LCT) approach has emerged as the most comprehensive and effective to achieve sustainability goals. Indeed, the LCT approach aims to reduce the use of resources and emissions to the environment associated with a product’s life cycle. It can be used as well to improve socio-economic performance through the entire life cycle of a product. Life Cycle Assessment (LCA), Life Cycle Costing (LCC) and Social Life Cycle Assessment (S-LCA) are undoubtedly the most relevant methodologies to support product-related decision-making activities for the extraction and processing of raw materials, manufacturing, distribution, use, reuse, maintenance, recycling and final disposal. While LCA is an internationally standardized tool (ISO 14040 2006), LCC (except for the ISO related to the building sector) and S-LCA have yet to attain international standardization (even if guidelines and general frameworks are available). The S-LCA is still in its experimental phase for many aspects of the methodological structure and practical implementation. This study presents the application of LCA and S-LCA to a textile product. The LCA and S-LCA are implemented following the ISO 14040-44:2006 and the guidelines from UNEP/SETAC (2009), respectively. The functional unit of the study is a cape knitted in a soft blend of wool and cashmere produced by a textile company located in Sicily (Italy). The system boundary of the study includes all phases from cradle-to-gate, from raw material production through fabric/accessory production to the manufacturing process of the product itself at the Sicilian Company. Background and foreground processes are taken into account using primary and secondary data. The analysis evaluates the environmental and social performances related to the specific textile product, but also outlines the general behaviour of the company. The case study also highlights pro and cons of a combined LCA and S-LCA to a textile product in a regional context. Full article
Figures

Figure 1

Open AccessArticle
Modeling the Construction Sector and Oil Prices toward the Growth of the Nigerian Economy: An Econometric Approach
Economies 2018, 6(1), 16; doi:10.3390/economies6010016 -
Abstract
This study empirically examined the interrelationship between the construction sector, oil prices, and the actual gross domestic product (GDP) in Nigeria. Using annual economic data from the National Bureau of Statistics (NBS), the OPEC Annual Statistical Bulletin, and econometric statistics, we found that
[...] Read more.
This study empirically examined the interrelationship between the construction sector, oil prices, and the actual gross domestic product (GDP) in Nigeria. Using annual economic data from the National Bureau of Statistics (NBS), the OPEC Annual Statistical Bulletin, and econometric statistics, we found that although very strong positive and significant correlations exist between the construction sector output and total GDP output (0.934), the construction sector output and oil prices (0.856), and the total GDP output and oil prices (0.822), these linear relationships only exist for a short time. However, these relationships do not result in any direct causal influence on each other, except for the uni-directional Granger causal relationship that flows from the total GDP output to the construction sector output, which implies that economic activities of other major non-oil sectors stimulate the construction activities in Nigeria. Thus, we argue that neither the construction sector nor the oil prices directly influence the aggregate economy; rather, the other sectors’ activities stimulate the construction sector in Nigeria. Two policy recommendations for achieving the Federal Government’s medium term Economic Recovery and Growth Plan (ERGP) are suggested: (1) the Nigerian government should de-emphasize overreliance on the oil sector through policy readjustment and (2) an urgent need for economic diversification in Nigeria exists, since we revealed that an increase in the aggregate GDP output is due to the activities of other non-oil sectors. Full article
Open AccessCase Report
Localization of SDGs through Disaggregation of KPIs
Economies 2018, 6(1), 15; doi:10.3390/economies6010015 -
Abstract
The United Nation’s Agenda 2030 and Sustainable Development Goals (SDGs) pick up where the Millennium Development Goals (MDGs) left off. The SDGs set forth a formidable task for the global community and international sustainable development over the next 15 years. Learning from the
[...] Read more.
The United Nation’s Agenda 2030 and Sustainable Development Goals (SDGs) pick up where the Millennium Development Goals (MDGs) left off. The SDGs set forth a formidable task for the global community and international sustainable development over the next 15 years. Learning from the successes and failures of the MDGs, government officials, development experts, and many other groups understood that localization is necessary to accomplish the SDGs but how and what to localize remain as questions to be answered. The UN Inter-Agency and Expert Group on Sustainable Development Goals (UN IAEG-SDGs) sought to answer these questions through development of metadata behind the 17 goals, 169 associated targets and corresponding indicators of the SDGs. Data management is key to understanding how and what to localize, but, to do it properly, the data and metadata needs to be properly disaggregated. This paper reviews the utilization of disaggregation analysis for localization and demonstrates the process of identifying opportunities for subnational interventions to achieve multiple targets and indicators through the formation of new integrated key performance indicators. A case study on SDG 6: Clean Water and Sanitation is used to elucidate these points. The examples presented here are only illustrative—future research and the development of an analytical framework for localization and disaggregation of the SDGs would be a valuable tool for national and local governments, implementing partners and other interested parties. Full article
Figures

Figure 1

Open AccessArticle
Size, Value and Business Cycle Variables. The Three-Factor Model and Future Economic Growth: Evidence from an Emerging Market
Economies 2018, 6(1), 14; doi:10.3390/economies6010014 -
Abstract
The paper empirically investigates three different methods to construct factors and identifies some pitfalls that arise in the application of Fama-French’s three-factor model to the Pakistani stock returns. We find that the special features in Pakistan significantly affect size and value factors and
[...] Read more.
The paper empirically investigates three different methods to construct factors and identifies some pitfalls that arise in the application of Fama-French’s three-factor model to the Pakistani stock returns. We find that the special features in Pakistan significantly affect size and value factors and also influence the explanatory power of the three-factor model. Additionally, the paper examines the ability of the three factors to predict the future growth of Pakistan’s economy. Using monthly data of both financial and non-financial companies between 2002 and 2016, the article empirically investigates and finds that: (1) size and book-to-market factors exist in the Pakistani stock market, two mimic portfolios SMB and HML generate a return of 9.15% and 12.27% per annum, respectively; (2) adding SMB and HML factors into the model meaningfully increases the explanatory power of the model; and (3) the model’s factors, except for value factor, predict future gross domestic product (GDP) growth of Pakistan and remain robust. Our results are robust across sub-periods, risk regimes, and under three different methods of constructing the factors. Full article
Figures

Figure 1

Open AccessArticle
Changes in Natural Disaster Risk: Macroeconomic Responses in Selected Latin American Countries
Economies 2018, 6(1), 13; doi:10.3390/economies6010013 -
Abstract
This paper studies the theoretical effects of changes in disaster risk on macroeconomic variables in five Latin American economies. It compares country-specific variants of the New Keynesian model with disaster risk developed by Isoré and Szczerbowicz (2017). Countries with higher price flexibility, such
[...] Read more.
This paper studies the theoretical effects of changes in disaster risk on macroeconomic variables in five Latin American economies. It compares country-specific variants of the New Keynesian model with disaster risk developed by Isoré and Szczerbowicz (2017). Countries with higher price flexibility, such as Argentina, Brazil, and Mexico, are found to be relatively less vulnerable to disaster risk shocks, as compared to Chile and Colombia in particular. Overall, the analysis suggests that increases in the probability of natural disasters over time may have significant macroeconomic effects, beyond the direct impact of actual disaster occurrences themselves. Full article
Figures

Figure 1

Open AccessArticle
Social Security and Fighting Poverty in Tunisia
Economies 2018, 6(1), 12; doi:10.3390/economies6010012 -
Abstract
The objective of this study was to examine the role of social security in fighting poverty in Metlaoui, Tunisia, using survey data collected between July 2012 and January 2014, covering 200 poor households. We used questionnaire data, which gave a thorough analysis of
[...] Read more.
The objective of this study was to examine the role of social security in fighting poverty in Metlaoui, Tunisia, using survey data collected between July 2012 and January 2014, covering 200 poor households. We used questionnaire data, which gave a thorough analysis of the reactions, behavior, and strategies adopted by poor households as a result of various forms of risk. Social security has an effect on a number of different areas, including health, education, housing, and income. Our methodology explored both complete and partial risk-sharing, to investigate the impact of social security schemes on the strategies adopted by households to cope with economic shocks. The estimation results of different models showed that social security could help social security-covered households choose less costly strategies to cope with risks. However, the role of social security remains insufficient, given that covered households had less confidence in its services and they adopted strategies of self-insurance or income smoothing. Overall, the results showed that social security plays an important role in Metlaoui, but it remains insufficient, especially for households that are not covered by social security and are suffering from heavy health expenditures. Full article
Open AccessArticle
Adult Learning, Economic Growth and the Distribution of Income
Economies 2018, 6(1), 11; doi:10.3390/economies6010011 -
Abstract
Technological change causes three consequences: it guarantees economic growth, it requires employees to acquire more skills and human capital, and it increases inequality if employees are not capable adapting to new technologies. The second consequence makes it almost necessary for employees to learn
[...] Read more.
Technological change causes three consequences: it guarantees economic growth, it requires employees to acquire more skills and human capital, and it increases inequality if employees are not capable adapting to new technologies. The second consequence makes it almost necessary for employees to learn during their whole working life, thereby accelerating technological change. Accordingly, the OECD (the Organization for Economic Co-operation and Development) and many governments supports the idea of lifelong learning, but it remains unclear how to finance the education of adult students who are working efficiently. In this paper, we use an overlapping generation model with human capital accumulation and inequality to derive a mechanism which reduces income inequality and provides an incentive for all adults to invest more in education. As a consequence, the growth rate of per capita income will increase and income inequality will be reduced. Full article
Figures

Figure 1

Open AccessArticle
The Effect of Government Debt and Other Determinants on Economic Growth: The Greek Experience
Economies 2018, 6(1), 10; doi:10.3390/economies6010010 -
Abstract
This study empirically investigates the relationship between economic growth and several factors (investment, private and government consumption, trade openness, population growth and government debt) in Greece, where imbalances persist several years after the financial crisis. The results reveal a long-run relationship between variables.
[...] Read more.
This study empirically investigates the relationship between economic growth and several factors (investment, private and government consumption, trade openness, population growth and government debt) in Greece, where imbalances persist several years after the financial crisis. The results reveal a long-run relationship between variables. Investment as private and government consumption and trade openness affect positively growth. On the other hand, there is a negative long-run effect of government debt and population growth on growth. Furthermore, the study addresses the issue of break effects between government debt and economic growth. The results indicate that the relationship between debt and growth depends on the debt breaks. Specifically, at debt levels before 2000, increases in the government debt-to-GDP ratio are associated with insignificant effects on economic growth. However, as government debt rises after 2000, the effect on economic growth diminishes rapidly and the growth impacts become negative. The challenge for policy makers in Greece is to halt the rising of government debt by keeping a sustainable growth path. Fiscal discipline should be combined with the implementation of coherent, consistent and sequential growth-enhancing structural reforms. Full article
Figures

Figure 1

Open AccessArticle
What Determines Lean Manufacturing Implementation? A CB-SEM Model
Economies 2018, 6(1), 9; doi:10.3390/economies6010009 -
Abstract
This research aims to ascertain the determinants of effective Lean Manufacturing (LM). In this research, Covariance-based Structural Equation Modeling (CB-SEM) analysis will be used in order to analyze the determinants. Through CB-SEM analysis, the significant key determinants can be determined and the direct
[...] Read more.
This research aims to ascertain the determinants of effective Lean Manufacturing (LM). In this research, Covariance-based Structural Equation Modeling (CB-SEM) analysis will be used in order to analyze the determinants. Through CB-SEM analysis, the significant key determinants can be determined and the direct relationships among determinants can be analyzed. Thus, the findings of this research can act as guidelines for achievement of LM effectiveness, not only providing necessary steps for successful implementation of lean, but also helping lean companies to achieve higher level of lean cost and time savings. Full article
Figures

Figure 1

Open AccessArticle
The Impact of Fiscal Decentralization on Accountability, Economic Freedom, and Political and Civil Liberties in the Americas
Economies 2018, 6(1), 8; doi:10.3390/economies6010008 -
Abstract
This paper analyzes the impact of fiscal decentralization on accountability, economic freedom, and political and civil liberties in the Americas. The findings indicate that decentralization initially hampers but eventually enhances accountability and political and civil liberties, in line with the hypothesized positive correlation
[...] Read more.
This paper analyzes the impact of fiscal decentralization on accountability, economic freedom, and political and civil liberties in the Americas. The findings indicate that decentralization initially hampers but eventually enhances accountability and political and civil liberties, in line with the hypothesized positive correlation between greater fiscal autonomy and a more inclusive, participatory government. The impact of fiscal decentralization on economic freedom, however, runs counter to expectations. Decentralization seems to initially bolster freedom, but it eventually constrains it, proving that greater accountability and political and civil liberties do not necessarily lead to greater economic freedom. When Canada and the US are excluded and the analysis is done with developing American nations only, the behavioral pattern regarding how fiscal decentralization affects the principal variables intensifies, noting that in developing countries the impact of fiscal decentralization is likely to be more consequential. Full article