Decentralization in Ethiopia--Who Benefits?
This paper shows that greater autonomy to cities in Ethiopia through a process of city proclamations, led to better economic outcomes at the city level, lowering regional spatial inequalities. In addition, the newly-empowered cities did not seem to misuse their new powers by favoring particular...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2015/12/25658151/decentralization-ethiopia-benefits http://hdl.handle.net/10986/23574 |
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okr-10986-235742021-04-23T14:04:15Z Decentralization in Ethiopia--Who Benefits? Chaurey, Ritam Mukim, Megha TAX INCENTIVES TARIFFS SUB-NATIONAL EQUITY TRANSACTION VALUE ADDED CITY ADMINISTRATION TAX RATE URBANIZATION WAGES ECONOMIC OUTCOMES CITY PUBLIC ECONOMICS BUSINESS COMMUNITY ADMINISTRATIVE REGION REGIONAL COUNCIL FUTURE INTEREST VALUE COMPETITIVENESS REGIONAL LEVEL BUDGETS SPATIAL INEQUALITY REMITTANCE LOCAL GOVERNMENTS SPATIAL EQUITY CITY MANAGER CENTRAL GOVERNMENT DOMESTIC MARKET DEVELOPING COUNTRIES EXPORTS URBAN GOVERNANCE URBAN AREAS EXPORTERS REVENUES GOVERNMENT REVENUE MAYORS INCENTIVES FIRM PERFORMANCE TAX RATES CAPACITY BUILDING VARIABLES CITY MANAGEMENT REGIONAL POLICIES MARKET TAX INPUTS CITIES TRADE LIBERALIZATION REGIONAL GOVERNMENTS URBAN DEVELOPMENT EXPORTER CITY GOVERNMENTS REVENUE SOURCES PROPRIETORSHIP DEVELOPING COUNTRY MUNICIPALITIES GOVERNANCE REGION TAXATION ECONOMIC DEVELOPMENT MACROECONOMIC SHOCKS TRADE LEGAL FRAMEWORKS GDP GOODS INFLUENCE FIXED ASSETS REGIONS STOCKS INVESTMENT REGIONAL REVENUE TARIFF SPATIAL INEQUALITIES METROPOLITAN AREAS DECENTRALIZATION URBAN MANAGEMENT REVENUE REGIONAL GOVERNMENT CHECK SERVICE CHARGES REGIONAL CITY MARKETS MAYOR LOCAL GOVERNMENT COMMUNITY TAX BASE SUB-NATIONAL REGIONS REGIONAL SCIENCE URBAN ECONOMICS LABOR MARKETS OUTCOMES AGRARIAN ECONOMY TOTAL EMPLOYMENT SERVICE DELIVERY POLICY CHANGES LEGAL FRAMEWORK FINANCE INFRASTRUCTURE TAXES FUTURE RESEARCH This paper shows that greater autonomy to cities in Ethiopia through a process of city proclamations, led to better economic outcomes at the city level, lowering regional spatial inequalities. In addition, the newly-empowered cities did not seem to misuse their new powers by favoring particular firms over others. We investigate the effect of a nation-wide introduction of VAT in Ethiopia – and show that the intended recipients of the reform, i.e. importing firms performed better (in terms of employment and sales) only after the VAT introduction in decentralized cities with greater autonomy than in non-decentralized cities. This is suggestive evidence that increasing administrative powers (or the mayor’s wedge) played an important role in making Ethiopian cities more competitive, and allowed mayor’s to transmit more efficiently the effect of national-level reforms. 2016-01-05T23:11:50Z 2016-01-05T23:11:50Z 2015-12-01 Working Paper http://documents.worldbank.org/curated/en/2015/12/25658151/decentralization-ethiopia-benefits http://hdl.handle.net/10986/23574 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Africa Ethiopia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
TAX INCENTIVES TARIFFS SUB-NATIONAL EQUITY TRANSACTION VALUE ADDED CITY ADMINISTRATION TAX RATE URBANIZATION WAGES ECONOMIC OUTCOMES CITY PUBLIC ECONOMICS BUSINESS COMMUNITY ADMINISTRATIVE REGION REGIONAL COUNCIL FUTURE INTEREST VALUE COMPETITIVENESS REGIONAL LEVEL BUDGETS SPATIAL INEQUALITY REMITTANCE LOCAL GOVERNMENTS SPATIAL EQUITY CITY MANAGER CENTRAL GOVERNMENT DOMESTIC MARKET DEVELOPING COUNTRIES EXPORTS URBAN GOVERNANCE URBAN AREAS EXPORTERS REVENUES GOVERNMENT REVENUE MAYORS INCENTIVES FIRM PERFORMANCE TAX RATES CAPACITY BUILDING VARIABLES CITY MANAGEMENT REGIONAL POLICIES MARKET TAX INPUTS CITIES TRADE LIBERALIZATION REGIONAL GOVERNMENTS URBAN DEVELOPMENT EXPORTER CITY GOVERNMENTS REVENUE SOURCES PROPRIETORSHIP DEVELOPING COUNTRY MUNICIPALITIES GOVERNANCE REGION TAXATION ECONOMIC DEVELOPMENT MACROECONOMIC SHOCKS TRADE LEGAL FRAMEWORKS GDP GOODS INFLUENCE FIXED ASSETS REGIONS STOCKS INVESTMENT REGIONAL REVENUE TARIFF SPATIAL INEQUALITIES METROPOLITAN AREAS DECENTRALIZATION URBAN MANAGEMENT REVENUE REGIONAL GOVERNMENT CHECK SERVICE CHARGES REGIONAL CITY MARKETS MAYOR LOCAL GOVERNMENT COMMUNITY TAX BASE SUB-NATIONAL REGIONS REGIONAL SCIENCE URBAN ECONOMICS LABOR MARKETS OUTCOMES AGRARIAN ECONOMY TOTAL EMPLOYMENT SERVICE DELIVERY POLICY CHANGES LEGAL FRAMEWORK FINANCE INFRASTRUCTURE TAXES FUTURE RESEARCH |
| spellingShingle |
TAX INCENTIVES TARIFFS SUB-NATIONAL EQUITY TRANSACTION VALUE ADDED CITY ADMINISTRATION TAX RATE URBANIZATION WAGES ECONOMIC OUTCOMES CITY PUBLIC ECONOMICS BUSINESS COMMUNITY ADMINISTRATIVE REGION REGIONAL COUNCIL FUTURE INTEREST VALUE COMPETITIVENESS REGIONAL LEVEL BUDGETS SPATIAL INEQUALITY REMITTANCE LOCAL GOVERNMENTS SPATIAL EQUITY CITY MANAGER CENTRAL GOVERNMENT DOMESTIC MARKET DEVELOPING COUNTRIES EXPORTS URBAN GOVERNANCE URBAN AREAS EXPORTERS REVENUES GOVERNMENT REVENUE MAYORS INCENTIVES FIRM PERFORMANCE TAX RATES CAPACITY BUILDING VARIABLES CITY MANAGEMENT REGIONAL POLICIES MARKET TAX INPUTS CITIES TRADE LIBERALIZATION REGIONAL GOVERNMENTS URBAN DEVELOPMENT EXPORTER CITY GOVERNMENTS REVENUE SOURCES PROPRIETORSHIP DEVELOPING COUNTRY MUNICIPALITIES GOVERNANCE REGION TAXATION ECONOMIC DEVELOPMENT MACROECONOMIC SHOCKS TRADE LEGAL FRAMEWORKS GDP GOODS INFLUENCE FIXED ASSETS REGIONS STOCKS INVESTMENT REGIONAL REVENUE TARIFF SPATIAL INEQUALITIES METROPOLITAN AREAS DECENTRALIZATION URBAN MANAGEMENT REVENUE REGIONAL GOVERNMENT CHECK SERVICE CHARGES REGIONAL CITY MARKETS MAYOR LOCAL GOVERNMENT COMMUNITY TAX BASE SUB-NATIONAL REGIONS REGIONAL SCIENCE URBAN ECONOMICS LABOR MARKETS OUTCOMES AGRARIAN ECONOMY TOTAL EMPLOYMENT SERVICE DELIVERY POLICY CHANGES LEGAL FRAMEWORK FINANCE INFRASTRUCTURE TAXES FUTURE RESEARCH Chaurey, Ritam Mukim, Megha Decentralization in Ethiopia--Who Benefits? |
| geographic_facet |
Africa Ethiopia |
| description |
This paper shows that greater autonomy to cities in Ethiopia through a
process of city proclamations, led to better economic outcomes at the city
level, lowering regional spatial inequalities. In addition, the newly-empowered
cities did not seem to misuse their new powers by favoring
particular firms over others. We investigate the effect of a nation-wide
introduction of VAT in Ethiopia – and show that the intended recipients of
the reform, i.e. importing firms performed better (in terms of employment and
sales) only after the VAT introduction in decentralized cities with greater
autonomy than in non-decentralized cities. This is suggestive evidence that
increasing administrative powers (or the mayor’s wedge) played an important
role in making Ethiopian cities more competitive, and allowed mayor’s to
transmit more efficiently the effect of national-level reforms. |
| format |
Working Paper |
| author |
Chaurey, Ritam Mukim, Megha |
| author_facet |
Chaurey, Ritam Mukim, Megha |
| author_sort |
Chaurey, Ritam |
| title |
Decentralization in Ethiopia--Who Benefits? |
| title_short |
Decentralization in Ethiopia--Who Benefits? |
| title_full |
Decentralization in Ethiopia--Who Benefits? |
| title_fullStr |
Decentralization in Ethiopia--Who Benefits? |
| title_full_unstemmed |
Decentralization in Ethiopia--Who Benefits? |
| title_sort |
decentralization in ethiopia--who benefits? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2015/12/25658151/decentralization-ethiopia-benefits http://hdl.handle.net/10986/23574 |
| _version_ |
1764454182859833344 |