Examining the Implication of Politics of Local Government Financial Autonomy on Developmental Outcomes in Nigeria: Evidence From Error Correction Model (ECM)

Hammed Adetola Adefeso

Abstract


This study evaluates the impact of politics of local government financial autonomy on the developmental outcomes in Nigeria. The study relies on secondary data gathered from Statistical Bulletin and World Development Indicator (WDI) from 1991 to 2021. The study finds that, variables employed are not stationary at level and there is evidence of long run convergence in the model. Using the error correction model (ECM), the study finds that, given the politics that revolves around local government financial autonomy, it would have had insignificant positive impact on development even if the state Governors have not encroached into local governments’ financial allocation in Nigeria. Also, the study reveals that fiscal decentralization has insignificant positive impact on development in Nigeria. Therefore, to have an effective governance at lower tiers of government, the study concurrently recommends both local government financial autonomy and extension of control of corruption at lower tiers of government in Nigeria.


Keywords


Local government; financial autonomy; ECM; Nigeria

Full Text:

PDF

References


Adeyeye, M. (2005). The dynamics of administration reform: An analysis of Nigerian local government. Being Paper Presented at the Mid. Term International Conference organised by IPSA Rc 4 in Association with the Nnamdi Azikiwe University, Awka, Anambra State, Nigeria and Centre for Democratic Governance (AFRIGOV) Abuja.

Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98, 103-125.

Blair, G. (1977). Government at the grassroots. California: Palisades Publishers

Davey, K. J. (1991). Local autonomy and independent revenue. Journal of Public Administration, 49(45).

Davoodi, H., & Zou, H. (1998). Fiscal decentralization and economic growth: A cross-country study. Journal of Urban Economics, 43, 244-257

Dickey, D. A. and Fuller W. A. (1981). The likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072.

Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of America Statistical Association, 74(366).

Johansen, S. and Juselius, K. (1992). Identification of the long run and short run structure: An Application of the IS-LM model, Discussion Paper.

Mawhood, P. (1983). Local government in the third world: The experience of tropical Africa, London: JohnWiley and Sons.

Ntiwunka, G, (2011). Comparative study of Autonomy and Democratic Status of Local Government in France and Nigeria. In I. Olojede, B. Fajonyomi, & J. Fatile (Eds.), Contemporary Issues in Local Government Administration in Nigeria. Lagos: Rakson Nigeria Ltd.

Nwabueze, B. O. (1983). Federalism in Nigeria. London: Sweet and Maxwell.

Ogunna, A. (1996). A hand book on local government in Nigeria. Owerri: Versatilers Publishers Ltd.

Okafor, J. (2010). Local government financial autonomy in Nigeria: The state joint local government account. Commonwealth Journal of Local Governance (CJLG July), 6, 127-131.

Okechukwu, E., & Edwin, I. (2013). Local government and fiscal autonomy for local government in Nigeria, Review of Public Administration and Management, 01, 03.

Olowu, D. (1988). African local government as instrument of economic and social development. Hague: Netherlands. The International Union of Local Authorities.

Oni, E. O. (1999). An introduction to local government administration in Nigeria. Ibadan Ejon Publisher

Rondinelli, D., Nellis and Cheema (1983). Decentralisation in developing countries: A review of recent experience. World Bank Staff Working Papers Number 581.

Seers, D. (1972). What are we trying to measure?. In N. Baster (Ed.), Measuring development: The role and adequacy of development indicators. London: Frank Cass.

Singer, H. W., & Ansari, J. A. (1977). Rich and poor countries, London: Allen & Unwin

Todaro, M. P. (1977). Economic development in the third world. Longman.

Xie, D., Zou, H., & Davoodi, H. (1999). Fiscal decentralisation and economic growth in the United State, Journal of Urban Economics, 45, 228-239.




DOI: http://dx.doi.org/10.3968/12638

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Author(s)

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

Submission Guidelines for Canadian Social Science

We are currently accepting submissions via email only. The registration and online submission functions have been disabled.

Please send your manuscripts to css@cscanada.net，or css@cscanada.org for consideration. We look forward to receiving your work.

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture