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Determinants of the Distribution of the Central-Government Budgetary Grants in Turkey

Author

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  • Recep Tekeli

    (Faculty of Social Sciences and Administration, Department of Public Finance, University of Adnan Menderes, Nazilli, Turkey)

  • Muhittin Kaplan

    (Faculty of Social Sciences and Administration, Department of Economics, University of NiÄŸde, NiÄŸde, Turkey)

Abstract

Intergovernmental grants are the main revenue source of local governments. In the fiscal decentralization literature it has been argued that fiscal disparities across the regions are accounted for in the central-government grant distribution. However, some argue that grants are given to localities to increase the reelection chances of the incumbent or to increase the votes at election. To compete with the opposition parties the incumbent party may try to allocate the grants to aligned local governments. In this paper we analyze the grant allocation in Turkey. We test empirically whether central-government's budgetary transfers to the municipalities were made on the basis of economic criteria or in accordance with the political interest of politicians, and hence the coalition government. To test the hypothesis we followed the literature but we used additional variables. Using municipal data in sixty-one provinces, we find that the desire to secure reelection motivates politicians.

Suggested Citation

  • Recep Tekeli & Muhittin Kaplan, 2008. "Determinants of the Distribution of the Central-Government Budgetary Grants in Turkey," Environment and Planning C, , vol. 26(5), pages 954-967, October.
    • Handle: RePEc:sae:envirc:v:26:y:2008:i:5:p:954-967
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    Cited by:

    1. Rodríguez-Pose, Andrés & Luca, Davide, 2014. "Electoral politics and regional development: assessing the geographical allocation of public investment in Turkey," CEPR Discussion Papers 10043, C.E.P.R. Discussion Papers.
    2. Gül Berna Özcan & Umut Gündüz, 2015. "Energy privatisations, business-politics connections and governance under political Islam," Environment and Planning C, , vol. 33(6), pages 1714-1737, December.
    3. Yannis Psycharis & Stavroula Iliopoulou & Maria Zoi & Panagiotis Pantazis, 2021. "Beyond the socio‐economic use of fiscal transfers: The role of political factors in Greek intergovernmental grant allocations," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 982-1008, June.
    4. Davide Luca & Andr�s Rodr�guez-Pose, 2015. "Distributive Politics and Regional Development: Assessing the Territorial Distribution of Turkey's Public Investment," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1518-1540, November.
    5. Luca, Davide, 2016. "Votes and Regional Economic Growth: Evidence from Turkey," World Development, Elsevier, vol. 78(C), pages 477-495.
    6. Davide Luca, 2013. "Regional development goals and distributive politics in the allocation of Turkey's central investments: socioeconomic criteria, parties and legislators' personal networks," ERSA conference papers ersa13p981, European Regional Science Association.

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