Efficiency of local public spending in Cameroon: Does population size matter?

Promoting decentralization is currently high on the global agenda. To date, the existing literature in the African context, and more specifically in Cameroon, has not established a link between the size of local authorities and the efficiency of their infrastructure spending. This study therefore at...

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Bibliographic Details
Published in:African development review 2024-06, Vol.36 (2), p.362-376
Main Authors: Ongo Nkoa, Bruno Emmanuel, Wangbara, Djondandi, Tchoffo Tameko, Gautier
Format: Article
Language:English
Subjects:
Cameroon
commune
Communes
Data envelopment analysis
Decentralization
Density
Economies of scale
Efficiency
Government spending
Infrastructure
Local authorities
Population
public spending
Spillover effect
Subsidies
Tobit censored
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Summary:Promoting decentralization is currently high on the global agenda. To date, the existing literature in the African context, and more specifically in Cameroon, has not established a link between the size of local authorities and the efficiency of their infrastructure spending. This study therefore attempts to fill this gap in the literature by empirically examining the effect of population size on the efficiency of local public spending in Cameroon. Using the two‐stage Data Envelopment Analysis model on a sample of 100 communes for the period 2017–2020 to estimate composite efficiency scores and the censored Tobit model to determine the effect of population size on the efficiency of local public spending, the results show that population size and density positively and very significantly affect the efficiency of local public spending. In light of these results, we recommend that the state make population size the main allocation key for transfers and subsidies to local authorities and that communes organize themselves into inter‐municipalities to benefit from economies of scale and curb spillover effects.
ISSN:1017-6772
1467-8268
DOI:10.1111/1467-8268.12764