Research output: Working paper
Research output: Working paper
}
TY - UNPB
T1 - National or political cake?
T2 - the political economy of intergovernmental transfers in Nigeria
AU - Maystadt, Jean-Francois
AU - Salihu, Muhammad Kabir
PY - 2015/12
Y1 - 2015/12
N2 - Analysing the effect of opportunistic fiscal transfers on the electoral fortune of incumbent politicians can be very difficult due to problems of endogeneity. In this paper, we use oil windfalls as an exogenous variation in the political discretion an incumbent government can exert in rule-based transfers. Exploiting within-state variation between 2007 and 2015 in Nigeria, an increase in VAT transfers induced by higher oil windfalls is found to improve the electoral fortune of an incumbent government. Our results question the role of rule-based transfers as an efficient institutional arrangement in resource-abundant countries.
AB - Analysing the effect of opportunistic fiscal transfers on the electoral fortune of incumbent politicians can be very difficult due to problems of endogeneity. In this paper, we use oil windfalls as an exogenous variation in the political discretion an incumbent government can exert in rule-based transfers. Exploiting within-state variation between 2007 and 2015 in Nigeria, an increase in VAT transfers induced by higher oil windfalls is found to improve the electoral fortune of an incumbent government. Our results question the role of rule-based transfers as an efficient institutional arrangement in resource-abundant countries.
KW - Intergovernmental transfers
KW - ruled-based transfers
KW - political manipulation
KW - fiscal federalism
KW - Nigeria
M3 - Working paper
T3 - Economics working paper series
BT - National or political cake?
PB - Lancaster University, Department of Economics
CY - Lancaster
ER -