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Fiscal transfers and gerrymandering under decentralization in the Philippines

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  • Joseph J. Capuno

    (School of Economics, University of the Philippines Diliman)

Abstract

While gerrymandering in developing countries is often pushed by local authorities to secure political advantages, fiscal grants systems under decentralization may also have result in the same. We investigate this issue to identify the correlates of the growth in the number of cities in the Philippines in 2001-2010. Using a panel of municipal-level data, incremental fiscal transfers are found to drive cityhood. Also, political payoffs -- like the incumbent mayor's re-election or having another member of the same political clan elected to the same position -- motivate the creation of new cities. Reforms in the country's fiscal transfer program are suggested.

Suggested Citation

  • Joseph J. Capuno, 2013. "Fiscal transfers and gerrymandering under decentralization in the Philippines," UP School of Economics Discussion Papers 201304, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:201304
    as

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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/708
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    References listed on IDEAS

    as
    1. Jan Werner, 2012. "International perspective for a sound intergovernmental finance system in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 49(1), pages 149-178, June.
    2. Paul D. Hutchcroft, 2012. "Re-slicing the pie of patronage: the politics of the internal revenue allotment in the Philippines, 1991-2010," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 49(1), pages 109-134, June.
    3. Benjamin E. Diokno, 2012. "Fiscal decentralization after 20 years: What have we learned? Where do we go from here?," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 49(1), pages 9-26, June.
    4. Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, March.
    5. Orville Jose C. Solon & Raul V. Fabella & Joseph J. Capuno, 2001. "Is Local Development Good Politics? Local Development Expenditures and the Re-election of Governors in the Philippines for 1992, 1995 and 1998," UP School of Economics Discussion Papers 200104, University of the Philippines School of Economics.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Gerrymandering; fiscal grants; decentralization;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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