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Journal of Empirical Studies

June 2020, Volume 7, 1, pp 52-60

The Financial Decentralization Policy for Local Development in Cameroon: An Econometric Analysis

Gerard TCHOUASSI

,

Pierre Patrick DZOU

Gerard TCHOUASSI 1
Pierre Patrick DZOU 2


  1. Faculty of Economics and Management, University of Yaounde II – Soa, Cameroon. 1

  2. Faculty of Economics and Management, University of Dschang, Cameroon. 2

Pages: 52-60

DOI: 10.18488/journal.66.2020.71.52.60

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Article History:

Received: 21 September, 2020
Revised: 12 October, 2020
Accepted: 05 November, 2020
Published: 23 November, 2020


Abstract:

The objective of this article is to show the effectiveness of financial decentralization policy in the process of local development. In order to do so, we analyze the financial decentralization as a determinant of the effectiveness of local development in Cameroon. To achieve the main objective, we have used the data grouped together after the exploitation of the communal development plans. Using the Data Environment Analysis (DEA) model, we have obtained interesting results: When the budget allocated to decentralized territorial collectivities (DTC) is increased by 1%, this makes possible an increase of 13 points of the achievement of non-revenue generating projects and by11 points, those of income-generating projects at the level of DTC. When the budget increases by 10 points, there is an increase of 130 points of the achievements of non-revenue generating projects and 110 points of those of income-generating projects. The increase of financial resources at the level of DTCs would create a reasonable increase of investments in socio collective projects and in basic infrastructures. This leads to a drastic reduction in the unemployment rate. We can recommend to the Government to implement strategies that can reinforce the practice of financial decentralization and ensure decentralized governance. The financial decentralization is an economic indicator that can bring growth and development.
Contribution/ Originality
This study contributes to econometrically analyzing the effectiveness of financial decentralization policy in the process of local development.

Keywords:

Financial decentralization, Local development, Decentralized territorial collectivities, Overall technical efficiency, Pure technical efficiency, Data envelopment analysis.

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Statistics:

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Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

Both authors contributed equally to the conception and design of the study.

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