The urban administration in Pakistan has transformed as a result of political and economic shifts. The urban government in Pakistan has been influenced by external financing, which is a reflection of institutional reforms, fiscal decentralization, and the priorities of global development. Over the course of the last three decades, Pakistan's urban management has transitioned from a centralized bureaucratic authority to fragmented local governance systems that are shaped by donor-driven projects and conditional cash inflows. An in-depth analysis of how multilateral development banks and bilateral aid influence urban policy, infrastructure, and service delivery is presented in this specific piece of writing. The evidence demonstrates that the use of external financing has hastened the process of urban modernization while simultaneously exacerbating governance problems such as policy incoherence, accountability deficiencies, and socio-spatial inequities. In this study, political economics research and urban planning perspectives are combined in order to investigate how external funding mechanisms influence the capacities of local governments and the transformation of urban infrastructure in Pakistan's fast-growing cities. The findings highlight the necessity of having governance structures that are adaptable and, in a position, to strike a balance between local interests and global urban finance strategy.
This paper examines human resource management (HRM) practices in Ghana's local government and advances a twofold argument. First, it shows that decentralization reforms introduced in the 1980s and 1990s locked the system into a path-dependent governance trajectory. This has narrowed the scope for alternative approaches to achieving an effective HRM system. Second, despite formal provisions establishing local governments as autonomous and non-partisan, the findings reveal that informal norms, political patronage, and asymmetric power relations remain central in shaping HRM decisions. These realities affect staff motivation, retention, and organizational performance, often impairing formal HR procedures and meritocratic intent. The paper challenges taken-for-granted assumptions that implementing cookbook governance and/or new public management prescriptions can automatically improve institutional effectiveness and service delivery in developing countries. Instead, it argues for greater attention to historical legacies and political contexts. The paper contributes to scholarly debates on public sector management and state capacity by highlighting the limits of technocratic and one-size-fits-all approaches to strengthening subnational governance
This thesis examines how the structure of municipal finance and budget governance affects the economic capacity of municipalities on the Faroe Islands. In recent decades, Faroese municipalities have been assigned increasing responsibility for welfare services, including elderly care, while substantial differences persist in municipal size, tax bases, and administrative capacity. These structural differences raise questions about whether the current decentralized governance system provides sustainable economic conditions for all municipalities. The study analyzes how the Faroese municipal financing and budgeting model is organized and explores the economic challenges municipalities face in practice. The analysis draws on qualitative interviews with Faroese mayors combined with document analysis of policy reports, legislation, and economic assessments. The empirical findings are interpreted through theoretical perspectives from fiscal federalism, incremental budgeting, soft budget constraint theory, and research on intermunicipal cooperation.The analysis shows that differences in population size, demographic composition, and tax bases create unequal economic conditions across municipalities. Smaller municipalities appear particularly vulnerable to economic shocks, demographic ageing, and large investments. While intermunicipal cooperation can enhance administrative capacity, it may also generate coordination challenges and common-pool dynamics. Furthermore, the financing model for elderly care contributes to uneven financial pressures between municipalities. The thesis concludes that the current institutional framework may create long-term challenges for the sustainability of municipal welfare provision. Possible policy responses include adjustments to the financing model, stronger equalization mechanisms, or structural reforms aimed at ensuring more economically robust local governments.
Cities are central to climate adaptation but face growing risks from flooding, heat, and water insecurity that disproportionately affect the urban poor (IPCC, 2022; Dodman et al., 2022). Although urban climate finance has increased, municipalities-especially in the Global South-often lack the fiscal autonomy and institutional capacity to access and deploy these resources effectively (Diezmartínez & Gianotti, 2024). Weak fiscal decentralization, fragmented intergovernmental transfers, and limited borrowing authority constrain local investment in climate-resilient WASH and infrastructure (Sow & Razafimahefa, 2015). In Bangladesh, climate-induced migration intensifies urban service deficits, reinforcing vulnerability among low-income and informal populations (Banks et al., 2011; Tanjeela, 2023).
This paper contributes to the recent literature on the FDI--growth nexus by investigating whether fiscal decentralization moderates the growth effects of foreign direct investment (FDI). Using a panel of 69 countries over 1996--2020 with fixed-effects and system-GMM estimations, we show that while FDI generally promotes economic growth, its positive effect is significantly attenuated in countries with higher levels of fiscal decentralization, on both the revenue and expenditure sides. We further identify infrastructure quality as a transmission channel through which expenditure decentralization dampens the FDI--growth nexus, suggesting a reduced capacity to finance national public goods in highly decentralized settings. These findings highlight the importance of intergovernmental coordination in preserving the growth effectiveness of foreign investment, and open new avenues for research on the institutional determinants of the FDI--growth nexus.
Most decentralized autonomous organizations (DAOs) use a 1-Token-1-Vote rule, allowing capital ownership to translate directly into governance power. This paper evaluates how a Quadratic Voting (QV)-inspired square-root reweighting counterfactual would affect voting outcomes in the Arbitrum DAO. For this, a time-paginated pipeline was developed to retrieve approximately 850,000 off-chain Snapshot vote records across fifteen of the DAO's highest-turnout proposals where each participating wallet's token-weighted voting power was replaced with its square root, and the proposal outcomes were recalculated. The results reveal extreme concentration of voting power, with a mean Gini coefficient of approximately 0.9950 among active participating wallets. In some proposals, the ten largest participating wallets or delegates collectively controlled as much as 86.87% of the total voting weight. Consequently, square-root reweighting changed the winning outcome in four of the fifteen proposals (26.7% of this purposively-selected, high-turnout sample), demonstrating that these outcomes were sensitive to the distribution of voting power across wallets. Its effect on victory margins was heterogeneous: margins widened in six proposals and narrowed in nine, with changes ranging from a 55.90-percentage-point expansion to a 37.76-percentage-point contraction. Notably, all four outcome reversals involved funding, grants, security expenditure, coalition financing, or related resource-allocation decisions. These findings suggest that square-root reweighting can alter both the magnitude and direction of token-weighted governance outcomes by reducing the relative influence of highly concentrated token holdings.
Decentralized Autonomous Organizations (DAOs) aim to foster decentralization but often exhibit "shadow-centralization" (i.e., a small group essentially exercises their governance power in voting, despite the wide distribution of voting rights). While prior literature has noted the potential for centralization in DAOs, it has not adequately distinguished between the centralization of governance power (i.e., tokens) holding and the centralization of power exercise through voting, nor has it examined the transition from the former to the latter. Furthermore, the literature has underexplored the consequences of this power transition for governance outcomes and the related contingent factors. Our study fills this gap by explicitly examining how centralization shifts from holding to voting and how this transition impacts the performance of DAO-governed decentralized applications (DApps). We also examine how these effects are contingent on the capability of voters and the nature of the governance issues. Focusing on both on-chain and off-chain DAOs, we find that an increase in centralization from holding to voting negatively affects DApp performance, confirming that concerns about "shadow-centralization" are warranted. We also find that this negative impact is mitigated when voters possess greater experience and connectivity than the broader group of token holders. Also, the adverse effect is more salient for proposals requiring higher deliberation and is less salient for novel proposals. Our study advances the understanding of DAO governance by highlighting the source of shadow centralization and reveals that it implications depend on who votes and what they vote on.
Decentralization is widely promoted as a governance reform to improve efficiency, accountability, and responsiveness in public service delivery, particularly in the health sector. In Pakistan, the 18th Constitutional Amendment of 2010 marked a significant shift in governance by devolving health sector responsibilities from the federal government to provincial governments. This reform substantially transformed Public Financial Management (PFM) arrangements in the health sector, affecting budgeting, expenditure control, and accountability mechanisms. This paper examines the impact of decentralization on health sector PFM in Pakistan by situating the reform within broader theoretical and empirical literature. It analyzes changes in health financing, governance, and service delivery outcomes while identifying persistent institutional and fiscal challenges. The study argues that although decentralization has enhanced provincial autonomy and policy responsiveness, weaknesses in public financial management capacity, coordination, and equity continue to limit its effectiveness. Strengthening PFM systems is therefore essential for translating decentralized governance into improved health outcomes in Pakistan.
Type of the article: Research ArticleAbstractThe Russian invasion of Ukraine has reshaped the functioning of local budgets, creating fiscal challenges for municipalities while simultaneously testing the resilience of the decentralization reform launched in the pre-war period. This study examines the dynamics of local public finance in Ukraine during wartime (2022–2024), focusing on revenue fluctuations, expenditure restructuring, and the emerging role of participatory budgeting as an adaptive tool for community engagement. Using official data from the Ministry of Finance, the State Statistics Service, and the Open Budget Portal, the analysis compares fiscal indicators before and during the full-scale war. Case studies of selected municipalities highlight divergent strategies between frontline and rear communities in balancing defense-related needs, social support for internally displaced persons, and development priorities. Despite reduced revenues and rising security expenditures, local budgets remained stable, largely due to the decentralization framework. In addition to domestic revenues, local budgets increasingly relied on external inflows: international grants, loans, and non-repayable donor assistance. These instruments served as a critical buffer that compensated for the wartime decline in municipal revenues and stabilized key public services. We further examined how these external resources shaped the fiscal resilience of Ukrainian municipalities under wartime conditions. Moreover, participatory budgeting, though often suspended, proved to be a potential mechanism for maintaining public trust and civic involvement under crisis conditions. The study argues that “wartime participatory budgeting” represents a novel phenomenon with implications for both crisis governance and post-war reconstruction.
This paper analyzes the role, structure, and challenges of central budget transfers namely block grants and earmarked transfers in financing primary and secondary education at the municipal level in the Republic of North Macedonia. In light of the country's ongoing fiscal decentralization, municipalities have assumed core responsibilities for delivering public education services. To fulfill these obligations, the central government supports local budgets primarily through block grants, which offer limited flexibility, and earmarked transfers designated for specific projects. Through a mixed-method approach combining legal analysis, comparative municipal data, and case-based evidence, the study evaluates the effectiveness, equity, and efficiency of the current intergovernmental transfer mechanisms. Special attention is given to disparities in per-student funding, differences in administrative capacity, and the extent to which formula-based allocations reflect local socio-economic conditions. Findings reveal substantial variation in municipalities’ capacity to ensure quality education, driven in part by weaknesses in funding formulas, late disbursements, and institutional constraints. The paper concludes with policy recommendations aimed at improving allocation methods, enhancing transparency, and building local administrative capacity to ensure fair, efficient, and sustainable education financing under a decentralized governance framework.
Inter-local cooperation (ILC) has long served as a pragmatic governance response in the Philippines, enabling local government units (LGUs) to address policy challenges that transcend administrative boundaries. Yet national experience under Section 33 of the 1991 Local Government Code shows that cooperation has often remained voluntary, procedurally thin, and dependent on Memoranda of Agreement rather than on institutionalized legal personality, pooled fiscal authority, and durable governance systems (Republic of the Philippines 1991; DILG, NEDA, and GIZ 2010; Miels and Mayer 2025). This article examines the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as a case of subnational legal innovation following the enactment of the Bangsamoro Local Governance Code (BLGC) in 2023 (BAA 49, 2023). Drawing on documentary analysis and national ILC experience, the study analyzes how the BLGC reconfigures statutory authority for inter‑LGU cooperation and why BLGC‑aligned institutions have not yet consolidated in routine practice. The findings show that the BLGC provides one of the most explicit statutory foundations to date for horizontal cooperation – authorizing joint organizations, shared authority, and multi‑stakeholder participation – yet inter‑local cooperation in BARMM remains largely MOA‑based at present, reflecting an early, pre‑institutionalization stage (BAA 49, 2023; Miels and Mayer 2025). Interpreting this as reform sequencing rather than policy failure, the article demonstrates that rules‑in‑form are in place while the rules‑in‑use required for implementation – procedural clarity, pooled fiscal systems, organizational capacity, and integration into regional governance – are still being developed (Ostrom 1990; Pierson 2000; Mahoney and Thelen 2010). In doing so, the study reframes early implementation gaps as expected features of institutional transition and highlights the BLGC’s broader contribution to modernizing the legal foundations of inter‑local cooperation beyond Section 33, offering insights relevant to decentralization reform and intergovernmental governance in the Philippines.
Martin Christy ABIAYA'A, Tati Gaelle TIMBA, Jean Hugues NLOM, Marcellin NDONG NTAH
Abstract The objective of this article is to analyze the effect of fiscal decentralization on early childhood education in Cameroon. Using a methodological framework based on econometric modeling by ordinary least squares (OLS), generalized least squares (GLS), and the generalized method of moments (GMM), it emerges that fiscal decentralization positively and significantly affects early childhood education in Cameroon. The results obtained by OLS and GLS reveal that Fiscal decentralization has a significant and positive effect on the number of desks per student. The Global Monitoring Mechanisms (GMM) demonstrate that fiscal decentralization leads to a significant and positive increase in both the number of classrooms per student and the number of desks per student. The investigations revealed that fiscal decentralization has a positive effect on early childhood education in Cameroon.These results suggest implementing financing mechanisms for local authorities to stimulate local development through the provision of sustainable socioeconomic infrastructure that can ensure equal and equitable access to education for children. Keywords: Cameroon, schooling, early childhood, fiscal decentralization
Decentralization of fiscal policy is a key factor in the formation of financial independence of local governments and strengthening the economic stability of regions in modern democratic states. Its relevance for Ukraine is determined by the need to strengthen the financial basis of territorial communities in the process of implementing administrative-territorial reform. The purpose of the study is to determine the decentralization of fiscal policy as a mandatory condition for obtaining an independent status of local communities; the object is the system of intergovernmental relations in democratic states. The methodological basis is comparative-legal and quantitative-analytical approaches, based on official statistical data Open Budget, World Bank Boost Data, the Ministry of Finance of Ukraine and the State Statistics Service. The results of the study showed that in 2018–2024 the share of income without transfers, tax revenues and own resources of communities increased, which confirms the increase in the level of fiscal autonomy. Legislative amendments to the Budget Code ensured the expansion of local revenue sources, the introduction of basic and reverse subsidy mechanisms and the strengthening of horizontal equalization. It was found that the Ukrainian model of fiscal decentralization is gradually approaching European practices, forming institutional prerequisites for the sustainable development of communities and strengthening their financial independence.
Uhryn A.P. FINANCIAL SUPPORT FOR THE DEVELOPMENT OF LOCAL COMMUNITIES IN DEVELOPED COUNTRIES: IMPLEMENTATION IN DOMESTIC PRACTICE Purpose. The aim of the article is to summarise and systematise international experience in financial support for the development of local communities in developed countries and to substantiate the directions for its implementation in domestic practice, taking into account the tasks of strengthening the revenue base of local budgets in Ukraine, increasing the institutional stability of communities and ensuring their sustainable development in the context of post-war recovery and budget decentralization. Methodology of research. The methodological basis of the study is the systemic and institutional approaches, which made it possible to consider local finances as a complex multi-level system in which budgetary, tax, and transfer mechanisms interact within the current institutional environment. In the process of research, comparative analysis methods were used to compare models of local finance organization and mechanisms of fiscal decentralization in different countries, logical generalization to form theoretical conclusions and conceptual provisions, as well as structural and functional analysis to identify the role of individual elements of the budget system in ensuring the financial autonomy of local self-government. Thus, the research methodology is based on a comprehensive combination of modern theoretical and methodological approaches to analysing the functioning of the public finance system in decentralized conditions. The theoretical basis of the work is formed by the provisions of the theory of fiscal federalism, which reveal the patterns of distribution of revenue and expenditure powers between levels of government, the concept of tax autonomy of territorial communities, as well as scientific approaches to inter-budgetary equalization as a tool for ensuring financial capacity and balanced regional development. Findings. It has been established that the effectiveness of financial support for local communities is determined by a balanced combination of tax autonomy, stable own and fixed revenues, as well as effective mechanisms of vertical and horizontal financial equalisation. The institutional features of decentralised, cooperative and centralised models of local finance, their impact on the financial stability of communities and the quality of public services are revealed. It is substantiated that Ukraine's priorities are: strengthening the role of personal income tax and property tax in local budget revenues, improving formula equalisation based on European models, developing municipal investment and project financing instruments, and integrating international aid into the local finance system while maintaining budgetary discipline. The obtained results correspond to the tasks of improving the effectiveness of community’s information and communication resources and strengthening the financial capacity of territories. Originality. International models of financial support for territorial communities have been systematised through the prism of combining tax autonomy and solidarity mechanisms; adaptation guidelines for Ukraine have been substantiated, combining the expansion of communities' own revenue base with the improvement of inter-budgetary relations and the strengthening of the financial responsibility of local self-government bodies. Practical value. The proposed approaches can be used by public authorities and territorial communities of Ukraine to form a sustainable revenue policy, optimise the financial equalisation system, plan development investments and improve the quality of budget management. The research results are relevant to scientific and practical tasks of improving local budget revenue management and introducing strategic risk management into community activities. Key words: financial support for local communities, fiscal decentralization, local budgets, tax autonomy, inter-budgetary relations, financial equalisation, post-war recovery.
Volodymyr Valihura, Oleksandr Odaiskyi, Ivan Vakulich, Mykhailo Soroka
Valihura V.A., Odaiskyi O.B., Vakulich I.P., Soroka M.V. PRAGMATICS OF FISCAL DECENTRALIZATION IN THE CONTEXT OF FORMING LOCAL BUDGET REVENUES IN UKRAINE Purpose. The aim of the article is to identify the prerequisites for the reform of fiscal decentralization in Ukraine, highlight individual stages of its implementation and assess the impact on the formation of local budget revenues. Methodology of research. The research process involved the use of general scientific and special methods of cognition, in particular analysis and synthesis, induction and deduction, systemic, structural and functional approaches. To assess the fiscal effects of the reform, comparative and dynamic analysis methods were used, as well as statistical methods for processing official data from the Ministry of Finance of Ukraine and the state budget web portal for citizens. The phasing of fiscal decentralization was substantiate using an institutional approach and elements of the concept of fiscal federalism. Findings. The article proves that fiscal decentralization reform in Ukraine had an uneven fiscal effect in the short term, but in the long term contributed to the growth of financial independence of local budgets. It has been established that in 2011–2014, the revenue base of local budgets was characterized by high dependence on interbudgetary transfers and the limited role of local taxes. The introduction of the reform in 2015 was accompanied by a temporary decrease in the share of own revenues due to the revision of personal income tax (PIT) crediting standards, but in 2016–2019, there was a gradual strengthening of the tax capacity of communities. It has been substantiated that the sharp reduction in official transfers in 2020 and 2022 was due to the completion of the administrative and territorial reform, the COVID-19 pandemic and the transition of the budget system to functioning under martial law. Originality. A comprehensive analysis of fiscal decentralization was conducted from the perspective of its pragmatic impact on the formation of local budget revenues in the long term. The author proposes an approach to the periodization of fiscal decentralization reform in Ukraine, taking into account institutional changes and crisis factors, and substantiates the relationship between the transformation of interbudgetary relations and the dynamics of tax revenues at the subnational level. Practical value. The obtained results can be used by state authorities and local self-government bodies in the formation of tax and budget policy, the improvement of interbudgetary equalization mechanisms and the development of a post-war strategy for the development of fiscal decentralization. Key words: fiscal decentralization, fiscal federalism, fiscal policy, local budgets, taxes, tax revenues, interbudgetary transfers, territorial communities, personal income tax.
Abstract Taxation justice and fiscal federalism are foundational pillars for building an inclusive, democratic, and sustainable nation. As countries diversify economically and socially, the role of equitable taxation becomes central to financing public goods, reducing inequality, and strengthening socio-political cohesion. Fiscal federalism, which concerns the distribution of financial powers and resources across central, state, and local governments, further reinforces the principles of subsidiarity, autonomy, and accountability required in a modern democratic state. This research paper analyses how taxation justice and fiscal federalism contribute to nation-building, examines structural gaps in existing fiscal arrangements, and highlights the need for transparent resource allocation, participatory governance, and decentralized fiscal empowerment. Using qualitative secondary data and descriptive analysis, the study demonstrates that taxation systems that are equitable, efficient, and progressive combined with a well-designed fiscal federalism framework help strengthen democratic participation, reduce regional disparities, support sustainable development, and stabilize public finance. The paper concludes by offering policy recommendations to enhance the equity and efficiency of taxation systems, thereby improving fiscal governance and promoting inclusive nation-building.
Abstract This chapter discusses the Albanian model for the equalization of financial disparities between urban and rural municipalities, especially after the 2014 Territorial and Administrative Reform (TAR). This reform reduced the number of local governments, merging 373 rural and urban entities into 61 larger municipalities. It aimed to streamline and harmonize service provision across regions and municipalities, but challenges persist due to the limited financial resources of local governments. The chapter explores the country’s intergovernmental financial framework, including recent reforms, which enhanced municipal responsibilities and financing. Despite reforms Albanian municipalities are heavily reliant on intergovernmental transfers, with unconditional grants playing a crucial role in equalizing financial resources. While the stability and allocation of the unconditional grants has improved since 2017, rural municipalities still struggle due to higher service costs and lower fiscal capacity compared to urban centers. There are also major differences between larger urban areas and the capital, Tirana. The chapter concludes that while Albania has made strides in decentralization, further reforms are necessary to address the ongoing fiscal inequalities between urban and rural local governments, underscoring the need for more robust equalization and financing mechanisms to bridge the gap between urban and rural municipalities.
Abstract Although decentralization is frequently used to improve service delivery and development, the impact of symmetrical fiscal decentralization on local government authorities ( lga s) and fair development has not been thoroughly investigated. Whilst symmetrical decentralization allows lga s to collect revenue and finance development projects, there are disparities among lga s in their ability to collect sufficient revenue and implement development projects. This study goes beyond prior research by investigating the way differences in the financial capacity of lga s affect development in various regions of Tanzania using a review of recent audit reports and studies. Results indicate that while certain lga s have shown a strong ability to collect revenue, others struggle considerably, due to factors such as historical background, revenue sources, population variations, urban-rural divides, and citizen awareness. Furthermore, the intergovernmental transfers, intended as an equalization strategy, have led to lga s remaining highly dependent on the central government and subject to the central government’s financial capacity. This study concludes that symmetrical fiscal decentralization in Tanzania has not achieved its intended goals. Despite some lga s over-collecting revenue, most remain heavily dependent on intergovernmental transfers, which are inconsistently distributed and often politically influenced, thus intensifying uneven development trends. The study recommends updating the 1998 policy to integrate asymmetrical decentralization, amending the Local Government Acts of 1982, building capacity to lga s, and shifting the central government’s role from controller to supporter.
This paper examines the concepts of federalism, fiscal federalism, and fiscal decentralization, with a focus on the Indian context. It outlines the constitutional and institutional foundations of India’s federal structure, tracing the historical evolution of fiscal decentralization from the colonial period to the post-independence era including pre- reform era. The study analyses revenue-sharing mechanisms, taxation policies, and grants-in-aid, alongside the roles of key institutions such as the Finance Commission, GST Council, and NITI Aayog. Findings highlight persistent vertical and horizontal imbalances, the positive impact of GST on state fiscal autonomy, and the continuing need for equitable and efficient fiscal arrangements. The paper concludes with policy recommendations aimed at strengthening cooperative federalism, enhancing state-level fiscal flexibility, and improving transparency in intergovernmental transfers.
The Buru Regency Government, as the party tasked with administering government, development, and public services, is required to report on regional financial accountability as the basis for assessing its financial performance. The purpose of this study is to assess regional financial performance using ratios from 2020 to 2024, consisting of: Regional Fiscal Independence; Effectiveness of PAD Management; Effectiveness of Regional Taxes; Degree of Fiscal Decentralization; Fiscal Dependency; and Growth of Regional Government Finance in Buru Regency. Using secondary data sourced from the Ministry of Finance website, this study concludes that the financial performance of the Buru Regency Government consists of: 1) the regional fiscal autonomy ratio is still very low with an instructive relationship pattern, indicating that the local government is not yet capable of financing its own government activities, development, and services to the community, and the local government still needs intervention from the central government; 2) the fiscal decentralization ratio indicates that the local government's ability to increase its own revenue (PAD) to finance its own development is still very limited; 3) the local tax effectiveness ratio and local revenue (PAD) indicate that the local government is less effective in realizing tax revenue and local revenue (PAD) from the set targets and real potential; 4) The fiscal dependency ratio shows that the Buru Regency local government is still highly dependent on assistance from the central and provincial governments compared to its own regional revenue; 5) The PAD growth ratio shows that the local government is poor/negative in maintaining and increasing PAD.
Danqi Chen, Yicheng Wang, Ahmed Muneeb Mehta, Muhammad Asif · 6 authors
Decentralization has become a central theme in debates on economic growth, governance effectiveness, and sustainable development. This study undertakes a bibliometric analysis of 1,322 articles published between 2005 and 2024, retrieved from the Web of Science (WoS) and Scopus databases. Using VOSviewer and Bibliometrix (R-package), the analysis maps research productivity, collaboration networks, and thematic clusters. The results reveal two dominant clusters: fiscal decentralization and its socio-economic and environmental impacts and determinants of decentralization and economic growth . High-ranked journals such as Sustainability and Environmental Science and Pollution Research emerge as leading outlets, while the most productive countries include the China and United States . The findings highlight underexplored areas such as decentralization’s role in renewable energy transitions and green finance. Framed within fiscal federalism and endogenous growth theory, this study contributes by identifying emerging trends, regional gaps, and policy implications for designing decentralization strategies that foster inclusive and sustainable economic growth. However, as a bibliometric study, it is limited in capturing case-specific or contextual details, which could be addressed in future qualitative or mixed-method research.
Abstract The global financial markets are being changed by DeFi's ability to remove central actors to facilitate peer-to-peer transactions. DeFi promotes efficiency, globalization, and economic inclusion, and at the same time, it has raised tax compliance. This study attempts to bridge the gaps by analyzing available scholarly and policy-oriented research, along with recent regulatory initiatives. The study concludes that the tax compliance challenges posed by DeFi's Decentralization, Shrouded Identity, and Composability Features are serious and can overcome the traditional tax reporting mechanisms. The study also suggests the broad directions of gaps in the literature to be addressed in policy-driven and empirical studies in the future. Keywords: DeFi, Blockchain, Tax Compliance, Fintech