Fiscal Decentralization and Economic Growth in Thailand: A Cross-Provincial Analysis
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Abstract
The purpose of this research was to study the impact of fiscal decentralization on economic growth. The unit of analysis was defined as the province. The study was conducted between the years 2010-2017 using a sample of 76 provinces nationwide (except Bueng Kan Province). This study is the first time in Thailand to use the province as a unit of analysis for testing. The correlation test with the economic growth model, it was found that the fiscal decentralization variables excluding grants (FD) considering from own-revenue comparing with the total revenue was correlated in the opposite direction to economic growth, but not statistically significant.Whereas the fiscal decentralization variables including grants (FDG) considering from own-revenue combining with grants from the central government comparing with the total revenue was correlated in the same direction with the economic growth with the statistical significance. For other variables that were in the same direction with the economic growth statistically significant were the amount of electricity sold and the number of tourists.
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