The study provides an understanding of the impacts of fiscal decentralization and local governance on government size and spending composition. We use a balanced panel data set of 63 provinces of Vietnam over the 2006–2015 period. By estimating the spatial Durbin model, we find that local public spending and government size grow over time and have spatial spillovers. Fiscal decentralization significantly reduces public spending and government size, which supports the Leviathan hypothesis. More interestingly, combining local governance, the marginal spatial spillover effects of the fiscal decentralization on public spending and government size are intensified. Our findings imply that local governments should enhance interregional collaboration in fiscal management to limit duplicate public spending and promote regional sustainable development.

中文翻译：

---

地方治理：越南财政分权对政府规模和支出构成的影响*

该研究提供了对财政分权和地方治理对政府规模和支出构成的影响的理解。我们使用2006-2015年期间越南63个省的平衡面板数据集。通过估算空间杜宾模型，我们发现地方公共支出和政府规模会随着时间的推移而增长，并且存在空间溢出效应。财政分权大大减少了公共支出和政府规模，这支持了利维坦假说。更有趣的是，结合地方治理，财政分权对公共支出和政府规模的边际空间溢出效应得到加强。我们的发现表明，地方政府应在财政管理方面加强区域间合作，以限制重复的公共支出并促进区域可持续发展。