The way globalisation affects States (both in term of role and policies) is currently under debate. In particular, one of the most interesting aspects of this debate is how globalisation (usually in the sense of economic globalisation) shapes fiscal policies (both taxation and public expenditures). Rodrik(1997), in one of the most influential contributions in this area, shows that there is a robust positive relationship between the level of openness to international trade, and the level of government consumption expenditure. However, contrary to Rodrik, Garrett and Mitchell (2001) find a negative relationship between government spending and openness to trade in OECD countries.

 

In addition, In recent years, the vertical structure of governments has been rapidly changing. On one hand, many states have experimented with programs of fiscal decentralisation consisting primarily of devolving revenue sources and expenditure functions from the central government to sub-national jurisdictions (Ter-Miniassian (1997), Fukasaku and de Mello (1999)). But, on the other hand, and more surprisingly, a growing number of countries around the world have implemented fiscal centralisation programs (Garrett and Rodden (2000)). The common view is that both these phenomena are related to the increasing integration of the world economy.

 

The aim of these sessions is to contribute to the debate on this area, both theoretical and empirical contributions are welcome. In particular, there are going to be 2 sessions on this topic:

 

 

 Session 1 Measuring Globalisation

 Session 2 Globalisation and Public Finance

 

If you wish to participate in the conference and present a paper on this topic, please contact Michela Redoano at this address: michela.redoano@warwick.ac.uk.

Organisers: Michela Redoano