The Importance of Institutional Arrangements for Development: A Study of the Relationship between Decentralized Governance and the Provision of Public Education




Shakirova, Ramziya

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This dissertation explores the possibility of improving the provision of public education through decentralizing decision-making, taxation and public spending to the level of regional governments. It develops a theoretical framework to analyze the impact of fiscal decentralization on the provision of public education and uses quantitative analysis to empirically evaluate the impact. The effects of other major socio-economic, political and demographic variables on public education spending and education outcomes were also examined. The analysis using cross-sectional time series data for 33 developed and transitional countries over the 1997-2006 period revealed that institutional arrangements in the form of decentralization of governance to the regional level have the potential to significantly improve public education.



Public policy, Decentralization, Fiscal Federalism, Public Education Financing, Public Education Quality