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Partisan alignment and political corruption: Evidence from a new democracy

Alexander Stoecker

World Development, 2022, vol. 152, issue C

Abstract: I analyze the link between partisan alignment of local politicians and the incidence of political corruption, using novel hand-collected data on local political corruption in Ghana. The empirical analysis, based on 205 districts observed over the period 2013–2018, suggests significantly lower levels of political corruption in aligned districts. Partisan alignment reduces corruption by 1.9 percentage points, equivalent to about half of the mean-level in non-aligned districts. In line with political ambition theory, I attribute this result to local politicians aligned with the national government having incentives to control fiscal irregularities within their localities in order to appease their national party leaders and preserve their party’s reputation. Alternative explanations are considered through empirical means and can be excluded. The estimated effect is more pronounced in districts that (i) are party strongholds, (ii) have better financial endowments, and (iii) have female local parliamentarians. It appears that political centralization and a politicized bureaucracy, as observed in Ghana, are important explanations for this finding.

Keywords: Political alignment; Local public finance; Intergovernmental transfers; Political career concerns; Africa; Ghana (search for similar items in EconPapers)
JEL-codes: D73 H77 H83 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:152:y:2022:i:c:s0305750x21004204

DOI: 10.1016/j.worlddev.2021.105805

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