The impact of recentralization on public services: A difference-in-differences analysis of the abolition of elected councils in Vietnam

Type Journal Article - American Political Science Review
Title The impact of recentralization on public services: A difference-in-differences analysis of the abolition of elected councils in Vietnam
Author(s)
Volume 108
Issue 1
Publication (Day/Month/Year) 2014
Page numbers 144-168
URL https://mpra.ub.uni-muenchen.de/54187/1/MPRA_paper_54187.pdf
Abstract
Comparative political economy offers a wealth of hypotheses connecting decentralization to improved
public service delivery. In recent years, influential formal and experimental work has begun to question the
underlying theory and empirical analyses of previous findings. At the same time, many countries have grown
dissatisfied with the results of their decentralization efforts and have begun to reverse them. Vietnam is particularly
intriguing because of the unique way in which it designed its recentralization, piloting a removal of elected People’s
Councils in ninety-nine districts across the country and stratifying the selection by region, type of province, and
urban versus rural setting. We take advantage of the opportunity provided by this quasi-experiment to test the core
hypotheses regarding the decision to shift administrative and fiscal authority to local governments. We find that
recentralization significantly improved public service delivery in areas important to central policy-makers, especially
in transportation, healthcare, and communications.

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