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Winning Competitive Grants For Regional Development in Albania: The Role of Local Leaders

Listed author(s):
  • Elvina Merkaj

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Riccardo Lucchetti

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Fabio Fiorillo

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

In post-socialist countries, regional development and decentralization has been a fast process accompanied by strong deregulation and significant institutional changes. Despite the reforms in Albania, local government units (LGUs) are often significantly underfunded, understaffed and depend heavily on grants from the central government. The focus of this study is the Regional Development Fund (RDF), a competitive investment fund which finances LGUs investments. We aim to analyze the factors influencing the LGU access to RDF funds, based on a survey with LGU leaders. Political affiliation of the LGU leader, networking and the knowledge the LGU leader about the RDF procedure are important factors affecting access to RDF funds. Interestingly, however, the factors that correlate with the number of applications are different from those that explain the success rate of those applications. Our findings call for a further institutionalization of the process in order to reduce the (informal) personal and political affiliation based influences in the RDF competition.

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File URL: http://docs.dises.univpm.it/web/quaderni/pdf/422.pdf
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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 422.

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Length: 27
Date of creation: Jul 2017
Handle: RePEc:anc:wpaper:422
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  1. Grossman, Philip J, 1994. "A Political Theory of Intergovernmental Grants," Public Choice, Springer, vol. 78(3-4), pages 295-303, March.
  2. Case, Anne, 2001. "Election goals and income redistribution: Recent evidence from Albania," European Economic Review, Elsevier, vol. 45(3), pages 405-423, March.
  3. Jameson Boex & Jorge Martinez-Vazquez, 2005. "The Determinants of the Incidence of Intergovernmental Grants: A Survey of the International Experience (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0509, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  4. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
  5. Lars Feld & Christoph Schaltegger, 2005. "Voters AS A Hard Budget Constraint: On the Determination of Intergovernmental Grants," Public Choice, Springer, vol. 123(1), pages 147-169, April.
  6. Alberto Porto & Pablo Sanguinetti, 2001. "Political Determinants of Intergovernmental Grants: Evidence From Argentina," Economics and Politics, Wiley Blackwell, vol. 13(3), pages 237-256, November.
  7. Nye, John V.C. & Vasilyeva, Olga, 2015. "When does local political competition lead to more public goods?: Evidence from Russian regions," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 650-676.
  8. Xin Wan & Yuanyuan Ma & Kezhong Zhang, 2015. "Political determinants of intergovernmental transfers in a regionally decentralized authoritarian regime: evidence from China," Applied Economics, Taylor & Francis Journals, vol. 47(27), pages 2803-2820, June.
  9. Klarita Gërxhani & Arthur Schram, 2009. "Clientelism and polarized voting: empirical evidence," Public Choice, Springer, vol. 141(3), pages 305-317, December.
  10. Rozevitch, Shimon & Weiss, Avi, 1993. "Beneficiaries from Federal Transfers to Municipalities: The Case of Israel," Public Choice, Springer, vol. 76(4), pages 335-346, August.
  11. Borck, Rainald & Owings, Stephanie, 2003. "The political economy of intergovernmental grants," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 139-156, March.
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