Main Results
The goal of this paper was to find out whether there is an association between government decentralization and transport infrastructure in the developing countries and whether this association is different when transport is compared to other kinds of infrastructure.
Due to very few research papers on this topic as well as limited data, it was not an easy task to perform an analysis that would yield unambiguous results. After controlling for financial, demographic, geographic, and political factors, both the cross-sectional analysis using the OLS model and the panel-data analysis using the fixed-effects model indicate that the association between decentralization and infrastructure provision across countries and years may be very weak or even nonexistent.
However, the non-transport-related services exhibit some correlation with decentralization in both specifications, which indicates that there may be a heterogeneity of results for transport- and non-transport-related services.
