There is a long debate among scholars about whether fiscal decentralisation increases or reduces national income inequality. Most of the existing empirical studies are based on a sample of medium- and high-income OECD countries. Results suggest that areas with a high standard of living are more likely to experience the eciency-boosting impacts of fiscal decentralisation to lessen income inequality since they have strong institutions and high fiscal capacities. However, there are a rare number of studies that examine this impact in low-income countries. Latin American countries can be a case-study example of low-income countries that are implementing fiscal decentralisation but have a high level of income inequality. Accordingly, the present research contributes to our understanding of the link between various forms of fiscal decentralisation, income inequality, and governance quality and seeks to analyse Latin American countries throughout the time period (1995–2021) using PMG-ARDL analysis on panel data. Egypt can learn from the experience of Latin American countries as a cautionary tale before implementing fiscal decentralisation. The empirical results confirmed the hypothesis of the study, that expenditure decentralisation increases income inequality, but the results changed after mediating quality of governance and income inequality decreased. However, estimating both averages measures of fiscal decentralisation (expenditure and revenue) with quality of governance mediator, result in increasing income inequality. The failure of eciency advantage of fiscal decentralisation can be due to an inadequate decentralisation system framework that depend on intergovernmental transfers and high vertical fiscal imbalance.

The overall research goal is to clarify the importance of creating (FEZs) globally, it gives a theoretical background about the Evolution of the (FEZs) and some important concepts and types related to the (FEZs), clarifying the general goals from creating (FEZs) from country and investor perspective. This paper has four main Economic objectives firstly, is to provide a scheme about the Evolution of the (FEZs) and the four different types of the (FEZs) in Egypt which are (Public (FEZs) - Private (FEZS) - Special Economic zones (SEZs) -Investment zones (IZs)) and then evaluate the Egyptian (FEZs) from attracting foreign capital fund, increasing Exports, employment generation and generating technology transfer. Secondly, how the institutional tools and (regulatory, infrastructure, location and tax) incentives are supporting the (FEZs) in Egypt to achieve the previous goals. Thirdly, to analyze a successful case study in regional Arabic country in Jebel Ali Free Economic Zone in Dubai (Trade-oriented). Where Egyptian (FEZs) and Jebel Ali in Dubai have common goals, as the major reason to establish (FEZs) in both countries is to attract FDI and boost exports, that it is believed that only the massive inflow of foreign capital and foreign earnings can guarantee the rapid economic development of such zones. Fourthly, the conclusion showing how wide or narrow is the gap between the theory and the Egyptian zones entailed, and whether the Egyptian (FEZs) enhances the backward linkage with the domestic market. Finally, the paper outlines some basic recommendations for future better work of the business investment climate of the Egyptian (FEZs).