Decentralisation and inter-municipal competition: evidence from Serbia

A process of administrative and fiscal decentralisation has been followed in virtually all Southeast European countries since their transition from communism. In Serbia this process, as with the process of transition itself, took off with some notable delay; but it has progressed rather fast since. Decentralisation is said to serve a multitude of objectives, from enhancing demographic representation and empowering local constituencies to raising the growth potential nationally and attaining higher levels of economic efficiency in the delivery of public policies...