The relationship between decentralization and economic growth across regimes

Abstract Panel smooth transition regression (PSTR) is applied to obtain thresholds in certain variables classify the regions into regimes (high or low). Data for of Spain over period 1986–2010 are used. In general, results point a positive (negative) relationship between fiscal (administrative) decentralization and economic growth with low public infrastructure stock per efficient worker high human capital worker. addition, (high) total factor productivity, expenditure (revenue) positively (negatively) correlated growth. The fairly robust different specifications estimation methods.