Decentralisation and territorial amalgamations: the effect on public expenditures and incomes in Ukraine

49 Pages Posted: 26 Jun 2024

See all articles by Oleg Nivievskyi

Oleg Nivievskyi

Kyiv School of Economics; Free University Berlin; University of Queensland - School of Economics

Anna Harus

Kyiv School of Economics

Daniel Ayalew Ali

World Bank - Development Research Group (DECRG)

Klaus Deininger

World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Olha Halytsia

Technische Universität München (TUM)

Date Written: July 01, 2021

Abstract

In this paper we study the effect of decentralisation and voluntary territorial communities' amalgamations in Ukraine, which started in 2014. We use an extensive panel of a very detailed local budget data over 2012-2018. Employing dynamic treatment effects (TE) model, we estimated cohort-specific average treatment effects on the amalgamated territorial communities (ATCs) as well as the interaction-weighted average effect. Our findings show that both ATCs' local revenues and expenditures have systematically increased due to the reform over time. We have also compared our results with the static fixed effects model and concluded that it produces imprecise estimates compared to the dynamic TE models.

Keywords: decentralisation, amalgamations, territorial communities, local budget, dynamic treatment effects, local revenues, public expenditures, Ukraine, hromadas

Suggested Citation

Nivievskyi, Oleg and Harus, Anna and Ali, Daniel Ayalew and Deininger, Klaus and Halytsia, Olha, Decentralisation and territorial amalgamations: the effect on public expenditures and incomes in Ukraine (July 01, 2021). Available at SSRN: https://ssrn.com/abstract=4870479 or http://dx.doi.org/10.2139/ssrn.4870479

Oleg Nivievskyi (Contact Author)

Kyiv School of Economics ( email )

vul. Mykoly Shpaka 3
Kyiv, 04119
Ukraine

Free University Berlin ( email )

Germany

University of Queensland - School of Economics ( email )

Anna Harus

Kyiv School of Economics ( email )

Daniel Ayalew Ali

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Klaus Deininger

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/kdeininger

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Olha Halytsia

Technische Universität München (TUM) ( email )

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