FISCAL FEDERALISM AND GOVERNMENT IN TRANSITION ECONOMIES: THE CASE OF MOLDOVA

This paper examines the relationship between fiscal decentralization - the assignment of revenue sources and expenditure functions across government levels - and government size in Moldova. The empirical results - based on data for a cross-section of Moldovan sub-national government in 1998 - suggest that fiscal decentralization is associated with larger sub-national governments and that the countryʹs revenue-sharing system imposes a constraint on sub-national revenue mobilization capacity. Copyright © 2001 John Wiley & Sons, Ltd.