Measuring and explaining fiscal de/centralization: Empirical evidence from Ethiopia, 1995–2020

This article provides an in-depth analysis of fiscal decentralization in Ethiopia from 1994/95 to 2019/20, focusing on five categories: regional own-source revenues, tax autonomy, borrowing, federal grants, and conditional grants. To measure de/centralization, the study constructs original data sets based reports various organizations over multiple years. The results demonstrate that de/centralization varies temporally spatially. While improved capacity is associated with enhanced revenue, desire improve management often centralization. Further, although Ethiopian regions have constitutional powers determine bases rates taxes, central government has significant influence such matters, manipulating affairs disregard constitution. reveals substantial variations revenues across attributed differences capacity, development, location, investment distribution. highlights importance a systematic understanding region-specific challenges accurately assess effectiveness policies global South. Insights are great policymakers looking embrace developing countries.