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Fiscal decentralization and gender equality: empirical evidence across countries
Mustafa Rafat Zaman* 
Article | Year: 2024 | Pages: 203 - 209 | Volume: 33 | Issue: 2 Received: December 25, 2023 | Accepted: April 11, 2024 | Published online: June 10, 2024
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FULL ARTICLE
FIGURES & DATA
REFERENCES
CROSSMARK POLICY
METRICS
LICENCING
PDF
Source: Author’s illustration.
|
Variables
|
Description
|
Sources
|
|
Democracy
index
|
A snapshot of
the state of democracy.
|
Economist
Intelligence Unit
|
|
Gender
equality index
|
A summary
measure of progress towards gender equality
|
World
Economic Forum
|
|
Financial
development index
|
Indicator of
depth, access and efficiency of financial institutions and markets.
|
International
Monetary Fund
|
|
Government
size
|
Index
measuring the size of the public sector in terms of consumption, investment,
transfers and subsidies etc.
|
Fraser
Institute
|
|
Gender
inequality index
|
A summary
measure of progress towards gender inequality
|
United
Nations Development Programme
|
|
Human
development index
|
A summary
measure of average achievement in key dimensions of human development.
|
|
Expenditure
decentralization
|
The ratio of
sub-central to general government spending.
|
Organisation
for Economic Co-operation and Development
|
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Union
|
The share of
wage and salary earners that are trade union members
|
|
Real GDP per
capita
|
GDP per
capita in 2015 U.S. dollars
|
World Bank
|
|
Urbanization
|
Ratio of
Urban population to Total population
|
|
Population
growth
|
Growth rate
value
|
|
Land area (sq.
km)
|
Land area
value
|
|
Unemployment
rate
|
Ratio of Unemployed
to Total labor force
|
|
Exports
|
Ratio of
Exports to GDP
|
|
Foreign
direct investment
|
Ratio of Foreign
direct investment to GDP
|
|
Population
|
Population
value
|
|
Population
density
|
Ratio of
Population to Land Area
|
|
Government
effectiveness
|
Governance
indicator capturing the perceptions of government effectiveness
|
|
Variable
|
Obs.
|
Mean
|
Std. Dev.
|
Min
|
Max
|
|
Gender equality index
|
432
|
0.75
|
0.05
|
0.64
|
0.91
|
|
Gender inequality index
|
432
|
0.12
|
0.08
|
0.01
|
0.43
|
|
Year
|
432
|
n/a
|
n/a
|
2006
|
2021
|
|
Expenditure decentralization (%)
|
431
|
32.40
|
16.12
|
5.60
|
69.11
|
|
Human development index
|
432
|
0.90
|
0.04
|
0.74
|
0.96
|
|
Log of Real GDP per capita
|
432
|
10.48
|
0.61
|
9.07
|
11.63
|
|
Government size
|
405
|
6.01
|
0.88
|
4.32
|
8.37
|
|
Urbanization (%)
|
432
|
77.82
|
10.96
|
53.73
|
98.12
|
|
Population growth (%)
|
432
|
0.64
|
0.68
|
-1.85
|
2.89
|
|
Unemployment rate (%)
|
432
|
7.39
|
4.17
|
2.01
|
27.47
|
|
Union
|
336
|
32.12
|
21.75
|
8.30
|
92.20
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|
Exports (%)
|
432
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52.96
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34.63
|
10.20
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211.43
|
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Foreign direct investment (%)
|
432
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5.68
|
16.64
|
-42.29
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138.70
|
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Financial development index
|
432
|
0.68
|
0.18
|
0.25
|
1.00
|
|
Government effectiveness
|
432
|
1.34
|
0.56
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-0.31
|
2.35
|
|
Democracy index
|
378
|
8.40
|
0.89
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5.57
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9.93
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Log of Population
|
432
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16.44
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1.49
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12.62
|
19.62
|
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Log of area (km2)
|
405
|
12.23
|
1.82
|
7.85
|
16.03
|
|
Log of Population density
|
405
|
4.20
|
1.38
|
0.98
|
6.25
|
|
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Dependent variable: Gender
equality index
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Variables
|
(1)
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(2)
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(3)
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(4)
|
|
Expenditure decentralization
|
0.007
|
-0.042
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-0.0321
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0.542**
|
|
(0.079)
|
(0.062)
|
(0.068)
|
(0.233)
|
|
Real GDP per capita (log)
|
|
-6.826**
|
|
|
|
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(2.910)
|
|
|
|
Government size
|
|
0.221
|
0.066
|
0.081
|
|
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(0.707)
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(0.715)
|
(0.430)
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|
Urbanization
|
|
0.064
|
0.175
|
0.424***
|
|
|
(0.165)
|
(0.173)
|
(0.164)
|
|
Population growth
|
|
-0.107
|
-0.122
|
-0.633*
|
|
|
(0.314)
|
(0.354)
|
(0.375)
|
|
Unemployment rate
|
|
-0.234**
|
-0.125
|
-0.0169
|
|
|
(0.095)
|
(0.092)
|
(0.084)
|
|
Union
|
|
0.325***
|
0.325***
|
0.219***
|
|
|
(0.071)
|
(0.092)
|
(0.085)
|
|
Exports
|
|
0.085**
|
0.066***
|
0.108***
|
|
|
(0.031)
|
(0.024)
|
(0.035)
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|
Foreign direct investment
|
|
0.015**
|
0.017**
|
0.024**
|
|
|
(0.006)
|
(0.007)
|
(0.012)
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|
Financial development
|
|
4.188
|
5.304
|
1.810
|
|
|
(4.344)
|
(4.333)
|
(3.270)
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|
Democracy
|
|
0.349
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0.120
|
1.289*
|
|
|
(1.031)
|
(1.053)
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(0.744)
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|
Human development index
|
|
|
-1.688
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-10.860
|
|
|
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(25.740)
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(21.210)
|
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Constant
|
71.10***
|
118.8***
|
42.09*
|
|
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(2.626)
|
(33.83)
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(23.95)
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|
|
No. of observations
|
431
|
288
|
288
|
288
|
|
Countries
|
27
|
27
|
27
|
27
|
|
Country fixed effects
|
Y
|
Y
|
Y
|
Y
|
|
Year effects
|
Y
|
Y
|
Y
|
Y
|
|
KP (F-stat)
|
|
|
|
10.323
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P-value (J-Stat)
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|
|
|
0.372
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Source: Author’s calculations.
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Variables
|
Dependent variable:
Expenditure decentralization
|
|
Population (log)
|
18.53***
|
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(3.61)
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Government effectiveness
|
-2.310*
|
|
(-2.07)
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|
Human development index
|
23.17
|
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(0.99)
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|
Government size
|
-0.374
|
|
(-0.79)
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|
Urbanization
|
-0.395**
|
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(-2.71)
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Population growth
|
0.560
|
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(1.84)
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Unemployment rate
|
-0.258***
|
|
(-3.53)
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Union
|
0.128
|
|
(1.27)
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Exports
|
-0.0902**
|
|
(-3.11)
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Foreign direct investment
|
-0.013
|
|
(-1.03)
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Financial development
|
5.417
|
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(1.52)
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|
Democracy
|
-2.197**
|
|
(-2.71)
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|
No. of observations
|
288
|
|
Country fixed effects
|
Y
|
|
Year effects
|
Y
|
Note: P-values (clustered by country) appear in parentheses below estimates; * p < 0.05, ** p < 0.01,
*** p < 0.001. First-stage regression results for the specification estimated in column 4 of table
2 above. Source: Author’s calculations.
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Dependent
variable
|
|
|
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Gender
inequality index
|
Gender
equality index
|
|
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Variables
|
(5)
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(6)
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(7)
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(8)
|
|
Expenditure decentralization
|
-0.354**
|
0.523**
|
0.390***
|
0.310**
|
|
(0.164)
|
(0.222)
|
(0.140)
|
(0.132)
|
|
Human development index
|
11.75
|
-10.56
|
-8.428
|
-7.144
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(14.70)
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(20.95)
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(19.39)
|
(18.81)
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|
Government size
|
-1.379***
|
0.0803
|
0.077
|
0.075
|
|
(0.318)
|
(0.426)
|
(0.406)
|
(0.398)
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|
Urbanization
|
-0.509***
|
0.415***
|
0.358**
|
0.323**
|
|
(0.146)
|
(0.161)
|
(0.139)
|
(0.138)
|
|
Population growth
|
0.813***
|
-0.616*
|
-0.498*
|
-0.426
|
|
(0.252)
|
(0.365)
|
(0.299)
|
(0.277)
|
|
Unemployment rate
|
-0.180***
|
-0.021
|
-0.045
|
-0.061
|
|
(0.055)
|
(0.082)
|
(0.069)
|
(0.066)
|
|
Union
|
-0.107*
|
0.223***
|
0.247***
|
0.262***
|
|
(0.062)
|
(0.083)
|
(0.076)
|
(0.075)
|
|
Exports
|
-0.057**
|
0.107***
|
0.097***
|
0.091***
|
|
(0.023)
|
(0.034)
|
(0.028)
|
(0.027)
|
|
Foreign direct investment
|
-0.015**
|
0.024**
|
0.022**
|
0.021**
|
|
(0.008)
|
(0.011)
|
(0.01)
|
(0.009)
|
|
Financial development
|
2.096
|
1.926
|
2.737
|
3.226
|
|
(2.444)
|
(3.234)
|
(3.115)
|
(3.133)
|
|
Democracy
|
-2.677***
|
1.250*
|
0.979
|
0.815
|
|
(0.615)
|
(0.731)
|
(0.651)
|
(0.639)
|
|
No. of observations
|
288
|
288
|
288
|
288
|
|
Countries
|
27
|
27
|
27
|
27
|
|
Country fixed effects
|
Y
|
Y
|
Y
|
Y
|
|
Year effects
|
Y
|
Y
|
Y
|
Y
|
|
KP (F-stat)
|
10.323
|
10.363
|
12.100
|
18.61
|
|
P-value (J-Stat)
|
0.919
|
0.342
|
0.295
|
0.440
|
Note: P-values (clustered by country) appear in parentheses below estimates; * p<0.10,
** p<0.05, *** p<0.01. Instruments used for the decentralization measure are population (in logs)
and government effectiveness in column 5; population density (in logs) and government effectiveness
in column 6; population (in logs), area (in logs), and government effectiveness in column 7;
population (in logs) and area (in logs) in column 8. The KP (F-stat) refers to the Kleibergen Paap
rk Wald F-statistic; the J-stat refers to Hansen’s overidentification test. Source: Author’s calculations.
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June, 2024
II/2024
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