"How Does Fiscal Decentralization Shape Corruption?" by Sharandy G. Appiah

Date of Award

5-2025

Degree Type

Creative Project

Degree Name

Master of Science (MS)

Department

Political Science

Committee Chair(s)

Anna Pechenkina (Committee Chair)

Committee

Anna Pechenkina

Committee

Diego Romero

Committee

Jia Li

Abstract

In this paper, I offer a comprehensive review of the impact of fiscal decentralization on corruption. Corruption has been a big hindrance to development, it undermines the inflow of foreign direct investment and even affects education. The literature on fiscal decentralization and corruption has conventionally argued that fiscal autonomy for local officials lowers corruption whereas most recent papers have found that fiscal decentralization increases corruption. I identify four possible pathways through which fiscal decentralization affects corruption and address possible reasons for the difference in findings in the literature. Understanding the mechanisms through which fiscal decentralization shapes corruption at the national and local levels may help policy makers design governance structures that enhance accountability and improve public service delivery, reducing corruption’s harmful impacts on investment and development.

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