Spatial interdependence and spillovers of fiscal grants in Benin: Static and dynamic diffusions
| Autor: | Rose Camille Vincent, VICTOR OSEI KWADWO |
|---|---|
| Přispěvatelé: | Maastricht Graduate School of Governance, RS: GSBE MGSoG |
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
COUNTRIES
AFRICA Single Equation Models Single Variables: Models with Panel Data Longitudinal Data Spatial Time Series Economics and Econometrics Sociology and Political Science Geography Planning and Development Local government expenditure TAX Single Variables: Cross-Sectional Models Spatial Models Treatment Effect Models State and Local Taxation h72 - State and Local Budget and Expenditures DETERMINANTS Development Economywide Country Studies: Africa Spatial interactions o55 - Economywide Country Studies: Africa Regional Government Analysis: General Benin and Revenue Intergovernmental grants Spillover effects Africa Subsidies h71 - State and Local Taxation Subsidies and Revenue YARDSTICK COMPETITION h71 - State and Local Taxation Building and Construction r50 - Regional Government Analysis: General LOCAL-GOVERNMENTS DECENTRALIZATION MODEL CROSS-SECTIONAL DEPENDENCE Quantile Regressions State and Local Budget and Expenditures PANEL-DATA |
| Zdroj: | World Development, 158 World Development, 158:106006. Elsevier Science |
| ISSN: | 0305-750X |
| DOI: | 10.1016/j.worlddev.2022.106006 |
| Popis: | This paper investigates the spatial diffusion of an intergovernmental grant in Benin. Using static and dynamic spatial models, we estimate the spillover effects of the Fonds d'Appui au Développement des Communes (FADeC) on per capita local government expenditure in the 77 municipalities from 2008 to 2015. Neighborliness – a measure of interdependence – is captured through geographic and distance-based spatial weighting schemes. In addition, we constructed a measurement of ethnic affinity as an alternative spatial weighting scheme to test for the existence of an ethno-spatial interdependence in local public finance in Benin. The empirical results suggest that a statistically significant share of the total effects of the FADeC stems from indirect elasticities or the diffusion process of grants received by neighboring jurisdictions, regardless of how we measure neighborliness. The results also confirm the existence of a robust ethno-spatial interdependence and complementarity in local government expenditure in Benin. The spillovers across ethnic neighbors are estimated to be 13.9% of the total effects in the short-run and 15.5% in the long-run. Put differently, the effects of the FADeC in a given municipality are influenced by the transfers received by its ethnic (and linguistic) neighbors. The findings point to the appeal of inter-governmental transfers for the decentralized financing of public services, especially in low-income countries where local bureaucratic capacity in raising own-source revenues might be limited. Supporting local governments with well-structured grants can not only be a channel to foster local public provision but also contribute to pushing geographic or ethnic neighboring localities to increase their own spending and generate positive spillovers that are crucial for wholistic regional development. World Development, 158 ISSN:0305-750X |
| Databáze: | OpenAIRE |
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