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All Journal JURNAL ECONOMIA Multidiciplinary Output Research for Actual and International Issue (Morfai Journal)
Edem Lekettey
Universitas Pendidikan Indonesia
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FISCAL AUTONOMY AND REVENUE GROWTH: THE IMPORTANCE OF SPATIAL CONTEXT IN LOCAL GOVERNMENT REFORM Edem Lekettey; Nugraha Nugraha; Maya Sari; Denny Andriana
Multidiciplinary Output Research For Actual and International Issue (MORFAI) Vol. 6 No. 2 (2026): Multidiciplinary Output Research For Actual and International Issue
Publisher : RADJA PUBLIKA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.18729038

Abstract

This study examines the revenue growth performance of Ghana's Metropolitan, Municipal, and District Assemblies (MMDAs) and explores the moderating influence of population density on the relationship between financial autonomy and revenue growth. This study analyzes the impact of institutional capability and spatial context on subnational fiscal performance in the context of Ghana's decentralization, based on fiscal federalism and institutional theory. Auditor-General's Reports and the Ghana Statistical Service provided data on 261 MMDAs from 2018 to 2023. Stata 18 and R 4.3 were used for fixed-effects estimation, the system generalized method of moments (GMM), robustness testing, and moderation analysis using Hayes' PROCESS Model 1. The results indicate that financial autonomy substantially improved subnational revenue growth (β = 0.0036, p < 0.001). Population density did not significantly reduce this association (β = -0.0031, p = 0.108). Further analysis indicates that the fiscal benefits of autonomy are more pronounced in low-density assemblies, suggesting that institutional and administrative efficiencies play a more critical role in fiscal performance than population size. The findings indicate that decentralization reforms should prioritize improving governance quality, institutional discipline, and fiscal accountability, rather than demographic or spatial considerations. This study represents the first application of moderated panel models to 261 Ghanaian MMDAs, demonstrating that institutional strength, rather than population density, serves as the principal determinant of fiscal benefits from autonomy in developing countries. This finding contributes to the discussion on fiscal federalism and institutional theories.
Fiscal Autonomy, Institutions, and Development in Africa: A Systematic Review of Decentralization Reforms Edem Lekettey; Nugraha Nugraha; Maya Sari; Denny Andriana
Jurnal Economia Vol. 22 No. 3 (2026): October 2026
Publisher : Faculty of Economics and Business, Universitas Negeri Yogyakarta in collaboration with the Institute for

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21831/economia.v22i3.89355

Abstract

Fiscal decentralization is often touted as a way to improve accountability and service delivery in Africa, but the results are varied. This systematic review assessed decentralization reforms across eight African countries from 2015 to 2025, examining 48 studies in accordance with the PRISMA 2020 guidelines. We found that 50% of the studies reported improvements in service delivery and revenue collection. Insufficient institutions facilitate elite capture, corruption and suboptimal resource allocation. Success depends on institutional quality, political commitment, and the order of reforms. Common challenges include difficulties in revenue retention, capacity constraints, political interference, and dependence on central transfers. Participatory budgeting, sequenced reforms, property taxation, and digital systems demonstrate enhanced effectiveness when they are supported by institutional safeguards. This review synthesizes fiscal federalism and institutional theory to elucidate varied outcomes and offers policymakers directions for formulating context-specific capacity-building reforms that are resilient to political capture.
Co-Authors Andriana, Denny Denny Andriana Maya Sari Maya Sari Nugraha Nugraha Nugraha Nugraha