Quality of sub-national government and regional development in Africa

Rodríguez-Pose, Andrés, Yohan Iddawela and Neil Lee
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

No 15651, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Despite widespread interest in government quality and economic development, the role of sub-national government has been largely overlooked. This represents an omission in Africa, given ongoing processes of devolution in much of the continent. In this article, we consider the impact of sub-national government institutions on economic development in 356 regions across 22 African countries. We create a novel index of sub-national government quality based on large-scale survey data and assess its impact on regional economies using satellite data on night light luminosity. To address causality concerns, we instrument sub-national government quality with data from pre-colonial societies. Our results show a positive and significant relationship between sub-national government quality and regional economic development, even when controlling for the quality of national level institutions. Better sub-national governments are a powerful but often overlooked determinant of development in Africa.

Keywords: Institutions; Quality of government; Regions; Africa; Decentralisation (search for similar items in EconPapers)
JEL-codes: E02 N97 O43 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-afr, nep-geo and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Quality of sub-national government and regional development in Africa (2021)
Working Paper: Quality of sub-national government and regional development in Africa (2021)
Working Paper: Quality of sub-national government and regional development in Africa (2021)
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