DECENTRALIZATION EFFECT ON LOCAL INVESTMENT IN BENIN

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Through the local investment, local development constitutes one of the major objective of decentralization (Lemieux, 2001). Different papers (Besson, 2002 ; Tsobzé et al, 2007) share the consideration that local collectivities’ investments raise with the decentralization process. This assertion reinforce the prediction of fiscal federalism that decentralization leads to the supply by local collectivities of a diversity of public goods, in order to satisfy local citizens (Tiebout, 1956). From this analysis, it is necessary to ask the question of decentralization effect on local collectivities investments. From the case study of a panel of 36 Benin districts, it is analyzed in this paper, how decentralization and other control variables like the level of subsidy (transfer), explain the local investment. Econometric analysis reveal that local investment is positively explained by the own revenue (local resources) and the central government and the partners ’subsidies.

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Decentralization , local investment , finance autonomous , subsidy , districts

Revue Des Études Multidisciplinaires En Sciences Économiques Et Sociales

140

Revue Des Études Multidisciplinaires En Sciences Économiques Et Sociales