This paper reviews the literature on the connection between fiscal descentralization and economic growth and then assesses the strength of such connection in the case of Colombia with the aid of an empirical estimation. To that end, the paper constructs indicators of fiscal descentralization via expenditures and tax levy. It is found that the sign of the coefficient of fiscal descentralization, as measured through public spending, is negative and not always statistically significant in the

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... s of Barro and Makiw, Romer and Weil (MRW). In Barro's model, such result is due to the size of the government. In the model of MRW, it may be due to several reasons, especially the weaknesses inherent in measuring with simple indicators such a complex process as fiscal descentralization and the misuses of delegation that it implies. The coefficient of fiscal descentralization, as measured through the tax levy, is negative and not statistically significant. JEL Classification: E62, H77. Comentarios: Fabio Sánchez. Se agradece la amable invitación cursada por el Banco de la República, a través de Olga Lucía Acosta y Hernán Rincón. De igual forma, los valiosos comentarios de los dos jurados anónimos y de Fabio Sánchez, así como de los asistentes al seminario "Diferentes aspectos del problema fiscal estructural del país", los cuales permitieron mejorar el trabajo. Sin embargo, los errores y omisiones son propios del autor. El autor en la actualidad trabaja para la Contraloría General de la República. Las opiniones que aquí se expresan no comprometen a la entidad para la cual trabaja. *