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Voznyak Halyna

Doctor of  Economics, Senior Research Fellow,

Leading Researcher of

Department of  Regional Financial Policy

SI “Institute of Regional Research

named after M.I. Dolishniy of the NAS of Ukraine”

4, Kozelnytska St., Lviv, 7906, Ukraine




Abstract: The paper provides the peculiarities of financial decentralization. Its effects in the context of economic growth of territories are systematized. Positive and negative consequences of financial decentralization from the viewpoint of macroeconomic regulation of socio-economic processes are outlined.

The research provides suggestions regarding the conducting of local governance and authorities’ territorial organization reform in terms of expansion of local governments’ competences in forming and use of financial resources based on positive/negative effects of financial decentralization and regarding the defining of the necessary and sufficient level of its implementation and level of central authorities’ and society’s readiness for changes. The paper proves that there isn’t an optimal level of financial decentralization same as there aren’t any ideal solutions in the process of implementation of financial decentralization reform. What spheres should be more or less centralized depends on the capacity of local authorities.

Keywords: financial decentralization, economic growth, territories, effects.

JEL classification: Н77, 043 


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