Dynamics of Regional Governance and Economic Resource Allocation
Khatira HUSEYNOVA
https://doi.org/10.18267/pr.2026.vol.2587.13
Abstract: This study examines the relationship between regional governance structures and the allocation of economic resources in the context of globalization, decentralization reforms, and digital transformation. The main objective of the research is to identify how different institutional governance models influence allocational efficiency, regional disparities, and long-term development outcomes. The study applies a mixed-method research design combining quantitative analysis of fiscal and regional economic indicators with qualitative institutional analysis of governance structures and coordination mechanisms. Comparative evidence from federal, centralized, and hybrid governance systems—including Brazil, Mexico, China, the United States, and selected East Asian economies—is used to evaluate differences in allocation performance. The results indicate that fiscal decentralization enhances allocative responsiveness and policy flexibility but may intensify regional disparities when equalization mechanisms are weak. Conversely, centralized coordination strengthens macro-fiscal stability and strategic policy alignment but does not automatically ensure spatial convergence. The findings suggest that allocation efficiency depends primarily on institutional alignment between fiscal architecture, administrative capacity, and governance coordination. The study concludes that integrated governance frameworks combining strategic central coordination with strong regional institutional capacity provide more sustainable and balanced development outcomes. Azerbaijan’s governance model illustrates how centralized coordination, digital transformation, and strategic infrastructure investments can support regional reconstruction and long-term economic resilience.
Keywords: Azerbaijan, regional government, public management models, economic resources
JEL Classification codes: O1, A5, P0
Fulltext: PDF
Published by: Prague University of Economics and Business, Oeconomica Publishing House
Year of publication: 2026
Online publication date: 20 May 2026
Copyright: Authors of the papers
ISBN 978-80-245-2587-7
ISSN 2453-6113
Pages 154-161