Spillover effects of fiscal decentralization on access to basic social services in Burkina Faso

This paper delves into the spillover effects of fiscal decentralization on access to essential social services within communes in Burkina Faso. It employs a Dynamic Spatial Durbin Model that comprehensively incorporates temporal dynamics, spatial interdependence concerning the dependent variable, an...

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Bibliographic Details
Published inGrowth and change Vol. 55; no. 1
Main Authors Zallé, Oumarou, Bakouan, Pousseni
Format Journal Article
LanguageEnglish
Published Lexington Blackwell Publishing Ltd 01.03.2024
Subjects
Access
Burkina Faso
Capital expenditures
Communes
Cooperation
Councils
Decentralization
Drinking water
dynamic spatial Durbin model
Effects
fiscal decentralization
Interdependence
local public services
Public goods
Resource mobilization
Social services
Spillover effect
spillover effects
Taxation
Water
Burkina Faso
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Summary:This paper delves into the spillover effects of fiscal decentralization on access to essential social services within communes in Burkina Faso. It employs a Dynamic Spatial Durbin Model that comprehensively incorporates temporal dynamics, spatial interdependence concerning the dependent variable, and spatial interdependence concerning exogenous variables. The analysis covers 280 municipalities, which represents 80% of the municipalities in Burkina Faso, over the period 2011–2020. The findings substantiate the presence of spillover effects stemming from fiscal decentralization on the availability of fundamental social services. However, the nature of these spatial effects hinges on the particular type of fiscal resources and local public goods under consideration. Notably, both capital expenditures and decentralized cooperation resources yield short‐term and long‐term direct as well as indirect enhancements to the quality of education and accessibility to potable water. On the other hand, self‐generated revenue and operational grants augment water accessibility but bear no impact on educational quality. The outcomes put forth imply that municipal councils should concurrently bolster resource mobilization by fortifying decentralized cooperation and widening the tax base. Simultaneously, the introduction of flexible tax payment mechanisms is advisable.
ISSN:0017-4815
1468-2257
DOI:10.1111/grow.12714