Shine a (Night)Light: Decentralization and Economic Development in Burkina Faso

Olivier B. Bargain (), Rose Vincent and Emilie Caldeira ()
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Olivier B. Bargain: Université de Bordeaux
Emilie Caldeira: CERDI, Université Clermont Auvergne

No 17459, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 (search for similar items in EconPapers)
JEL-codes: H00 H70 H71 H72 O10 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2024-11
New Economics Papers: this item is included in nep-afr, nep-big, nep-dev, nep-geo and nep-ure
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Working Paper: Shine a (night)light: decentralization and economic development in Burkina Faso (2025)
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