The determinants of the distribution of the public investment budget between the decentralized territorial communities: evidence from cameroon

Simon Pierre Onana () and Tanguy Lomie Mamoho ()
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Simon Pierre Onana: University of Yaoundé 2
Tanguy Lomie Mamoho: University of Yaoundé 2

Economia Politica: Journal of Analytical and Institutional Economics, 2025, vol. 42, issue 1, No 12, 339-367

Abstract: Abstract The aim of this paper is to identify the determinants of the distribution of Public Investment Budget (PIB) between municipalities in Cameroon. Based on an original panel dataset of all the 360 municipalities found in Cameroon over the period 2013–2020, results reveals that efficiency is the most important determinant when distributing public investment budget in Cameroon, while equity is less consider when distributing public investment budget in Cameroon. On one hand, if the central government in Cameroon allocates the PIB as a priority in municipalities where there is a greater need for socio-economic development, on the other hand, it does not assist more the municipalities with a low tax base. The results further reveal that Cameroon’s PIB distribution system is also influenced by political and electoral considerations. In effect, the central government targets municipalities where the candidate of the aligned party collects more votes in the last presidential elections. Besides, municipalities with more uncertain voters in the last presidential elections receives more PIB, all other things being equal, while those headed by a mayor from the same political party as the President of the Republic do not seem to be a priority to targets. However, when the distribution of the PIB is guided more by political and electoral considerations, this can be the origin of an unequal allocation of the BIP and as well as the realization of public investment projects which do not fit with the real needs of populations. Consequently, the study recommends that public authorities in Cameroon should adopt best strategies when allocating PIB by taking into account, as a priority, the budget deficit and the socio-economic needs of the municipalities.

Keywords: Intergovernmental transfers; Public investment budget; Cameroon; Decentralization (search for similar items in EconPapers)
JEL-codes: H20 H77 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40888-025-00356-3

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