Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Impact of own resources on municipalities’ investments expenditures in Benin

Impact of own resources on municipalities’ investments expenditures in Benin This paper aims to study the impact of municipalities’ own resources on their investments‘ expenditure.Design/methodology/approachPanel data analysis. A sample of 34 municipalities in Benin. Econometrics tests for the panel data models – estimation of the fixed-effect and random-effect models. Hausman test to identify the best model to explain the impact of the explanatory variables on local investments’ expenditures. Heteroskedasticity, normality and autocorrelation tests.FindingsThe results establish a positive and significant impact of own resources, state transfers and demographic variables on local investments’ expenses.Research limitations/implicationsAs an implication, the results show the importance of local resources’ mobilization for the municipalities’ investment capacity building. They also show that the central government transfers continue to play a major place in local investments’ finance, even in a decentralization context. Limitation: Available data do not allow to well evaluate the impact of the electoral variable on municipalities’ investments’ expenditure. This situation does not allow to well analyze the public choice considerations in local authorities’ behaviors.Practical implicationsLocal mobilization of financial resources must be encouraged to raise municipalities’ investments’ capacities. Strategies must be developed to reinforce local capacities in local resources mobilization.Social implicationsThe results show the importance of local resources in local investments. They show the importance of citizens’ participation in their well-being construction, through local resource mobilization (ex: local fiscality).Originality/valueMany authors assert in the literature that financial autonomy has a real impact on local development. However, empirically, it was not demonstrated. This paper contributes to correct this lack. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Development Issues Emerald Publishing

Impact of own resources on municipalities’ investments expenditures in Benin

Loading next page...
 
/lp/emerald-publishing/impact-of-own-resources-on-municipalities-investments-expenditures-in-guhEgW0vf0
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1446-8956
DOI
10.1108/ijdi-04-2021-0070
Publisher site
See Article on Publisher Site

Abstract

This paper aims to study the impact of municipalities’ own resources on their investments‘ expenditure.Design/methodology/approachPanel data analysis. A sample of 34 municipalities in Benin. Econometrics tests for the panel data models – estimation of the fixed-effect and random-effect models. Hausman test to identify the best model to explain the impact of the explanatory variables on local investments’ expenditures. Heteroskedasticity, normality and autocorrelation tests.FindingsThe results establish a positive and significant impact of own resources, state transfers and demographic variables on local investments’ expenses.Research limitations/implicationsAs an implication, the results show the importance of local resources’ mobilization for the municipalities’ investment capacity building. They also show that the central government transfers continue to play a major place in local investments’ finance, even in a decentralization context. Limitation: Available data do not allow to well evaluate the impact of the electoral variable on municipalities’ investments’ expenditure. This situation does not allow to well analyze the public choice considerations in local authorities’ behaviors.Practical implicationsLocal mobilization of financial resources must be encouraged to raise municipalities’ investments’ capacities. Strategies must be developed to reinforce local capacities in local resources mobilization.Social implicationsThe results show the importance of local resources in local investments. They show the importance of citizens’ participation in their well-being construction, through local resource mobilization (ex: local fiscality).Originality/valueMany authors assert in the literature that financial autonomy has a real impact on local development. However, empirically, it was not demonstrated. This paper contributes to correct this lack.

Journal

International Journal of Development IssuesEmerald Publishing

Published: Aug 25, 2021

Keywords: Decentralization; Municipality; Transfer; Local investment; Own resources; H41; H54; H72; R53

References