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Does the system of allocation of intergovernmental transfers in Senegal eliminate politically motivated targeting?

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  • Emilie CALDEIRA

    (Université d'Auvergne(UdA))

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 Subsaharan countries. Using an original micro-level public fi?nance panel data from Senegal, we address three issues: (1) Does the Senegalese allocation system of ?fiscal transfers conform to the guidance of the normative theory, in particular, to the equity principle? (2) Does this allocation system eliminate the politically motivated targeting of transfers? (3) If not, what kind of political factors explain the horizontal allocation of resources? By estimating a panel data for 67 local gov- ernments ("communes"), from 1997 to 2009, we fi?nd that equity concerns do not affect the allocation of intergovernmental transfers 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 ?fiscal transfers. In particular, our analysis suggests that transfers allocation follows a pattern of tactical redistribution more than patronage, swing communes being targeted while partisan communes are not.

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  • Emilie CALDEIRA, 2011. "Does the system of allocation of intergovernmental transfers in Senegal eliminate politically motivated targeting?," Working Papers 201105, CERDI.
  • Handle: RePEc:cdi:wpaper:1244
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    Cited by:

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    2. 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.
    3. Pierre Mandon & Clément Mathonnat, 2014. "Forms of Democracies and Financial Development," CERDI Working papers halshs-01084679, HAL.
    4. Fabio Fiorillo & Elvina Merkaj, 2021. "A comprehensive approach to intergovernmental grants’ tactical allocation. Theory and estimation guidelines," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(4), pages 995-1013, August.
    5. Maria El Khdari, 2019. "Déterminants des transferts intergouvernementaux : le cas du Maroc," Post-Print hal-02137651, HAL.
    6. Pierre MANDON & Clément MATHONNAT, 2014. "Forms of Democracies and Financial Development," Working Papers 201421, CERDI.
    7. Pierre Mandon & Clément Mathonnat, 2014. "Forms of Democracies and Financial Development," Working Papers halshs-01084679, HAL.
    8. 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).
    9. Maria EL KHDARI, 2015. "Déterminants des transferts intergouvernementaux : le cas des communes Marocaines," Working Papers 201531, CERDI.
    10. Kayode Taiwo & Linda G. Veiga, 2020. "Is there an “invisible hand” in the formula-based intergovernmental transfers in Nigeria?," NIPE Working Papers 02/2020, NIPE - Universidade do Minho.
    11. Pierre Mandon & Clément Mathonnat, 2015. "Forms of Democracies and Financial Development," CERDI Working papers halshs-01196108, HAL.
    12. Wahman, Michael, 2015. "Nationalized Incumbents and Regional Challengers: Opposition- and Incumbent-Party Nationalization in Africa," GIGA Working Papers 270, GIGA German Institute of Global and Area Studies.
    13. Jorge L D. Ferreira & Alexandre F. Alves & Emilie Caldeira, 2021. "Grants for Whom and Why? The Politics of Allocation of Transfers in Brazil," The Developing Economies, Institute of Developing Economies, vol. 59(1), pages 39-63, March.
    14. 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.
    15. Emilie Caldeira & Grégoire Rota-Graziosi, 2015. "La décentralisation dans les pays en développement : une revue de la littérature - Decentralization in developing countries: A literature review," CERDI Working papers halshs-01005204, HAL.
    16. 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.
    17. Ignacio Lago & André Blais, 2018. "Decentralization And Electoral Swings," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1804, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    18. International Monetary Fund, 2015. "Mali: Technical Assistance Report - Local Taxation and Decentralization," IMF Staff Country Reports 2015/291, International Monetary Fund.
    19. Sanoh, Aly, 2015. "Rainfall Shocks, Local Revenues, and Intergovernmental Transfer in Mali," World Development, Elsevier, vol. 66(C), pages 359-370.
    20. Pierre MANDON & Clément MATHONNAT, 2015. "Forms of Democracies and Financial Development," Working Papers 201523, CERDI.
    21. Pierre Mandon & Clément Mathonnat, 2015. "Forms of Democracies and Financial Development," Working Papers halshs-01196108, HAL.
    22. Abel Fumey, 2018. "Intergovernmental fiscal transfers and tactical political maneuverings: Evidence from Ghana's District Assemblies Common Fund," WIDER Working Paper Series wp-2018-31, World Institute for Development Economic Research (UNU-WIDER).
    23. 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.
    24. Abel Fumey & Festus O. Egwaikhide, 2018. "Political Economy of Intergovernmental Fiscal Transfers: The Rural‐Urban Dynamics in Ghana," African Development Review, African Development Bank, vol. 30(1), pages 33-44, March.

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    More about this item

    Keywords

    Intergovernmental transfers; Political economy; Decentralization; Senegal;
    All these keywords.

    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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