The Impact of Fiscal Decentralisation on Local Economic Development in Montenegro

Authors

  • Jadranka Kaludjerovic University Donja Gorica
  • Milika Mirković University Donja Gorica
  • Mijat Jocović The Faculty of Economics, University of Montenegro

DOI:

https://doi.org/10.4335/15.3.685-703(2017)

Keywords:

fiscal decentralisation, local economic development, Montenegro, local government

Abstract

The goal of the paper is to determine the extent to which local governments in Montenegro have managed to direct their increasing fiscal autonomy towards supporting local economic development. Our analysis of local business support programmes has shown that local governments have space to improve their business environments and business support programmes. Econometric analysis of data for 21 municipalities for 2007-2014 period, showed that the increase of own-source and shared revenues has a positive impact on local economic development. However, these findings are insufficient to conclude the extent to which decentralisation influences economic development and identify channels whereby it exerts this influence.

Author Biographies

  • Assistant Professor

  • Assistant Professor

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Published

2017-06-28

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