Intergovernmental Transfers and Own Revenues of Subnational Governments in Nigeria

Kayode Taiwo

Hacienda Pública Española / Review of Public Economics, 2022, vol. 240, issue 1, 31-59

Abstract: The paper explores the effect of intergovernmental transfers on the own revenues of subnational governments in Nigeria. This study employs the instrumental variables (IV) model to establish the impact of annual variation in intergovernmental transfers on the own revenues of subnational governments. The study reveals that states depend mainly on transfers from the federal government to run their operations; and transfers to second-level administrative units, states in Nigeria crowd out own revenues. A 1 percent rise in transfers leads to about 0.65 percent reduction in own revenues per capita. Also, the drive for own revenues goes down in the election year.

Keywords: Federalism; Intergovernmental transfer; Revenue; Subnational government; Instrumental variables (search for similar items in EconPapers)
JEL-codes: H29 H71 H77 (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)

Downloads: (external link)
https://hpe-rpe.org/wp-admin/admin-ajax.php?juwpfi ... 38246686ff&preview=1 (application/pdf)

Related works:
Working Paper: Intergovernmental Transfers and Own Revenues of Subnational Governments in Nigeria (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hpe:journl:y:2022:v:240:i:1:p:31-59

Access Statistics for this article

More articles in Hacienda Pública Española / Review of Public Economics from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().