Shine a (night)light: Decentralization and economic development in Burkina Faso
研究布基纳法索1995-2005年间分阶段实施的公共部门权力下放改革对地方经济的影响，发现早期权力下放的公社经济活动显著增长14%-18%，但只有能自主创收的公社受益。
• We study the causal impact of the phased-in public-sector decentralization reform in Burkina Faso between 1995 and 2005. • We employ a difference-in-difference method applied to night-time light intensity as proxy for local economic activity. • Findings indicate a significant increase—14% to 18%—in economic activity in early decentralized communes. • Decentralization did not lift all boats; suggestive evidence points to own-source revenue potential as key to success. • Results are robust to various checks, including placebo tests and alternative measurements of local development. Decentralization, championed by international institutions, has been one of the most prominent public sector reforms of the last decades, particularly in sub-Saharan Africa. To date, few studies propose a quasi-experimental evaluation of its capacity to contribute to local development. We exploit the phase-in of decentralization at the commune level in Burkina Faso. We use satellite information on night-time light density as a proxy for local development levels, which has the advantage of being measured and comparable over time and space. The communes that were decentralized first can be compared to the others after the reform relative to the pre-reform situation. The difference-in-difference approach includes commune fixed effects and inverse propensity score reweighting to account for time-varying differences across communes. We find a positive impact of decentralization on the night-light intensity trends of the early-decentralized communes. This is supported by alternative measures (remote sensing of built-up settlements and a welfare index), which shows the possibly broader scope of decentralization gains. We show that decentralization did not lift all boats: only the communes with the ability to generate own-source revenues benefited from effective decentralization.