Intergovernmental fiscal transfers and tactical political maneuverings: Evidence from Ghana's District Assemblies Common Fund

Abel Fumey

No wp-2018-31, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the influence of political considerations on intergovernmental fiscal transfers in Ghana. The two-step system GMM approach was used to estimate transfers and elections data for 167 districts from 1994 to 2014. The analysis was country-wide and covers swing districts as well as aligned districts, while the democracy transitions from 'new' to 'mature'. The results show that each district received on average GhȻ6.28 million per year and the amount generally increased by 8.4 per cent in election years.

Keywords: Political economy; Fiscal transfers; Allocation formula; Redistributive politics (search for similar items in EconPapers)
Date: 2018
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