RETRACTED: Assessing the Influence of Fiscal Decentralization on the Structure of Public Spending of Local Governments: Evidence From Cameroon

Justin Romuald Manga Amougou and Constant Djiogap Fouopi

Review of Development Economics, 2026, vol. 30, issue 3, E15-E32

Abstract: This paper aims to analyze the effect of fiscal decentralization on the structure of public spending in Cameroonian municipalities. The study covers 213 regional and local authorities for 11 years from 2010 to 2020. After briefly reviewing the literature, we used different estimation techniques to get our results. The results show that revenue decentralization positively and significantly affects overall municipal spending. We further disaggregate public spending into investment and operating spending. We find that expenditure decentralization positively and significantly affects operating and capital spending. However, the effect is more pronounced on capital spending. By changing the measure of decentralization, we also find that revenue decentralization positively and significantly affects local public spending. We therefore encourage policymakers to transfer more responsibilities and resources to local authorities.

Date: 2026
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