| By: |
Bargain, Olivier B. (Université de Bordeaux);
Vincent, Rose Camille (Utrecht School of Economics);
Caldeira, Emilie (CERDI, Université Clermont Auvergne) |
| Abstract: |
Decentralization, championed by international institutions, has been one of
the most prominent public sector reforms of the last decades, particularly in
sub-Saharan Africa. To date, few studies propose a quasi-experimental
evaluation of its capacity to contribute to local development. We exploit the
phase-in of decentralization at the commune level in Burkina Faso. We use
satellite information on night-time light density as a proxy for local
development levels, which has the advantage of being measured and comparable
over time and space. The communes that were decentralized first can be
compared to the others after the reform relative to the pre-reform situation.
The difference-in-difference approach includes commune fixed effects and
inverse propensity score reweighting to account for time-varying differences
across communes. We find a positive impact of decentralization on the
night-light intensity trends of the early-decentralized communes. This is
supported by alternative measures (remote sensing of built-up settlements and
a welfare index), which shows the possibly broader scope of decentralization
gains. We show that decentralization did not lift all boats: only the communes
with the ability to generate own-source revenues benefited from effective
decentralization. |
| Keywords: |
decentralization, economic development, local development, Africa, Burkina Faso |
| JEL: |
H00 H70 H71 H72 O10 |
| Date: |
2024–11 |
| URL: |
https://d.repec.org/n?u=RePEc:iza:izadps:dp17459 |