The empirical studies on the direct impact of FD on economic growth during the last decade have not only provided the first corresponding empirical examinations, but have also elaborated meaningful insights into various aspects of this relationship. This paper reviews these studies, summarises their major findings, examines the covered time horizon and region, compares the applied theoretical framework and the chosen empirical methodology, evaluates the chosen indicators for fiscal decentralisation and the specification of the dependent growth variable.
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