Déterminants des transferts intergouvernementaux: le cas du Maroc

Maria Elkhdari

Revue économique, 2019, vol. 70, issue 1, 67-96

Abstract: The Moroccan central government follows a formula-based approach when it redistributes the Value Added Tax (VAT) revenues to local municipalities. Using a unique panel dataset on Moroccan municipalities from 2005 to 2009, this paper investigates the determinants of unconditional transfers. The results suggest that socio-economic variables are significant, implying that there is an underlying system of equalization with an important bias toward urban municipalities. Political factors do also play an important role in this redistribution process, and this supports the hypothesis of a tactical redistribution rather than a targeted redistribution. Besides, ?swing municipalities? receive more transfers than others, and being a municipality ruled by supporters of the central government does not seem to determine the amount of transfers to be received. Further quantile analysis points to the existence of a real heterogeneity in the conditional redistribution of the VAT and the impact of socio-economic characteristics depends on the amount of VAT transferred.

Keywords: intergovernmental transfers; political economy; formula based transfers; fixed effect vector decomposition; quantile regression (search for similar items in EconPapers)
Date: 2019
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