Investigation the Effect of Fiscal Decentralization on Economic Growth in Provinces Iran Using Spatial Econometric

In the economic literature, theories of fiscal decentralization have been taken into consideration in order to increase efficiency and productivity of the public sector and regional balance. It is important to mention that without paying attention to dimensions, features and results of this policy, decentralization may cause harmful results as imbalance in country areas and intense political tension. Considering two main goals of growth and justice viewed by economists and planners, the quality effect of fiscal decentralization on these two variables is important. The main aim of this current research is to evaluate fiscal decentralization on economic growth in Iran provinces during 1385- 1393. In order to achieve this aim the spatial econometrics method in frame of tabular information was used to study the fiscal decentralization effects. The achieved results show that fiscal decentralization has positive effect on economic growth in terms of income index and negative effect on economic growth in terms of expenditure index in Iran provinces