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Does the System of Allocation of Intergovernmental Transfers in Senegal Eliminate Politically Motivated Targeting?

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  • Emilie Caldeira

Abstract

While there is a large body of literature on the determinants of allocation of intergovernmental fiscal transfers in developed countries, this kind of study is still very limited for developing countries, especially Sub-Saharan countries. Using an original micro-level public finance panel data from Senegal, we address three issues: (1) Does the Senegalese allocation system of fiscal transfers conform to the guidance of normative theory, in particular, to the equity principle? (2) Does this allocation system eliminate politically motivated targeting of transfers? (3) If not, what kind of political factors explain the horizontal allocation of fiscal resources? By rigorously estimating panel data for 67 local governments (communes) from 1997 to 2009, our results tend to show that equity concerns do not affect the allocation of intergovernmental grants in Senegal, leading to the conclusion that the resources distribution system does not comply with the dictates of normative theory. Moreover, we find evidence that political considerations influence the horizontal allocation of transfers. In particular, our analysis suggests that the distribution of central resources follows pattern of tactical redistribution more than patronage, swing communes being targeted while partisan communes are not. Copyright 2012 , Oxford University Press.

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  • Emilie Caldeira, 2012. "Does the System of Allocation of Intergovernmental Transfers in Senegal Eliminate Politically Motivated Targeting?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(2), pages 167-191, March.
  • Handle: RePEc:oup:jafrec:v:21:y:2012:i:2:p:167-191
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    Cited by:

    1. International Monetary Fund, 2015. "Mali; Technical Assistance Report - Local Taxation and Decentralization," IMF Staff Country Reports 15/291, International Monetary Fund.
    2. Fjeldstad, Odd-Helge & Chambas, Gérard & Brun, Jean-Francois, 2014. "Local Government Taxation in Sub-Saharan Africa," Working Papers 13710, Institute of Development Studies, International Centre for Tax and Development.
    3. Grégoire ROTA-GRAZIOSI & Emilie CALDEIRA, 2014. "La décentralisation dans les pays en développement : une revue de la littérature - Decentralization in developing countries: A literature review," Working Papers 201411, CERDI.
    4. Ignacio Lago & André Blais, 2018. "Decentralization and electoral swings," Working Papers. Collection A: Public economics, governance and decentralization 1805, Universidade de Vigo, GEN - Governance and Economics research Network.
    5. Pierre Mandon & Clément Mathonnat, 2014. "Forms of Democracies and Financial Development," Working Papers halshs-01084679, HAL.
    6. Abel Fumey, 2018. "Intergovernmental fiscal transfers and tactical political maneuverings: Evidence from Ghana’s District Assemblies Common Fund," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).
    7. Sanoh, Aly, 2015. "Rainfall Shocks, Local Revenues, and Intergovernmental Transfer in Mali," World Development, Elsevier, vol. 66(C), pages 359-370.
    8. Pierre MANDON & Clément MATHONNAT, 2015. "Forms of Democracies and Financial Development," Working Papers 201523, CERDI.
    9. Maria El Khdari, 2016. "Déterminants des transferts intergouvernementaux : le cas des communes Marocaines," Working Papers halshs-01232558, HAL.
    10. Maria EL KHDARI, 2015. "Déterminants des transferts intergouvernementaux : le cas des communes Marocaines," Working Papers 201531, CERDI.
    11. Pierre Mandon & Clément Mathonnat, 2015. "Forms of Democracies and Financial Development," Working Papers halshs-01196108, HAL.
    12. Ignacio Lago & André Blais, 2017. "Decentralization and electoral swings," Working Papers. Collection B: Regional and sectoral economics 1702, Universidade de Vigo, GEN - Governance and Economics research Network.
    13. Fossati, Diego, 2016. "Beyond “Good Governance”: The Multi-level Politics of Health Insurance for the Poor in Indonesia," World Development, Elsevier, vol. 87(C), pages 291-306.

    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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