Do external grants to district governments discourage own-revenue generation?: A look at local public finance dynamics in Ghana
AbstractUsing rich panel data on all of Ghanaâs districtsâ local public finances over 11 years, this paper investigates the way that intergovernmental and other transfers to local governments affect local governmentsâ incentives to collect internally generated revenues and funds (IGF). We find that despite an incentive scheme built into one of the major intergovernmental grants, the flow of all grants taken together discourages, rather than encourages, IGF. This is reflected both in the depressing effect of transfers on IGF levels, as well as on IGF growth.
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Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 934.
Date of creation: 2009
Date of revision:
Decentralization; Inter-governmental transfers; Local government; Internally generated revenues; Development strategies;
Other versions of this item:
- Mogues, Tewodaj & Benin, Samuel, 2012. "Do External Grants to District Governments Discourage Own Revenue Generation? A Look at Local Public Finance Dynamics in Ghana," World Development, Elsevier, vol. 40(5), pages 1054-1067.
- NEP-ALL-2010-01-16 (All new papers)
- NEP-DEV-2010-01-16 (Development)
- NEP-PBE-2010-01-16 (Public Economics)
- NEP-URE-2010-01-16 (Urban & Real Estate Economics)
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