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Are Strategic Interactions between Moroccan Local Governments Geographical or Political?

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  • Maria Elkhdari (a), Samira Oukarfi (b), Samir Zine El Alaoui (b) and Youness Sahibi (c)

    ((a) World Bank Group; (b) Hassan II University, Morocco; (c) Abdelmalek Essaâdi University, Morocco)

Abstract

This article aims to demonstrate empirically the existence of strategic interactions between the decisions of local governments in Morocco. The main objective is to know whether the interactions between Moroccan municipalities are geographical or political. In order to do this analysis, we use a detailed panel data on 1280 Moroccan municipalities from 2005 to 2009. Our results highlighted that expenditure choices of municipalities are influenced by choices taken in neighboring municipalities. These interactions exist not only among neighboring municipalities but also among municipalities whose Municipal Council have the same partisan affiliation. The analysis of neighboring interactions versus political interactions reveals the intensification of strategic behaviors between neighboring municipalities than municipalities that have the same political party at the top of Municipal Council. Therefore, decentralization induces strategic interactions between municipalities belonging to the same range in developing countries as well as in developed countries.

Suggested Citation

  • Maria Elkhdari (a), Samira Oukarfi (b), Samir Zine El Alaoui (b) and Youness Sahibi (c), 2021. "Are Strategic Interactions between Moroccan Local Governments Geographical or Political?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 46(1), pages 33-52, March.
    • Handle: RePEc:jed:journl:v:46:y:2021:i:1:p:33-52
    DOI: 10.35866/caujed.2021.46.1.002
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    More about this item

    Keywords

    Horizontal Competition; Spatial and Political Interaction; Decentralization; Local Expenditures; Morocco;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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