Preprint Article Version 1 This version is not peer-reviewed

The Temporal Dynamics of Corruption in Decentralised Water Utilities: A Longitudinal Study

Version 1 : Received: 23 October 2024 / Approved: 24 October 2024 / Online: 25 October 2024 (07:40:30 CEST)

How to cite: Horesh, E. The Temporal Dynamics of Corruption in Decentralised Water Utilities: A Longitudinal Study. Preprints 2024, 2024101960. https://doi.org/10.20944/preprints202410.1960.v1 Horesh, E. The Temporal Dynamics of Corruption in Decentralised Water Utilities: A Longitudinal Study. Preprints 2024, 2024101960. https://doi.org/10.20944/preprints202410.1960.v1

Abstract

This study examines the temporal relationship between decentralisation and corruption in water supply schemes across two large Indian states. Utilising a difference-in-differences approach and experiential corruption measures, we analyse the impact of decentralising water utilities from state to local government control. Our findings challenge the prevailing assumption that decentralisation inherently reduces corruption. Instead, we observe a significant increase in corruption immediately following decentralisation. However, this surge diminishes substantially over time, though a residual rise continues in the medium term. These results suggest a nuanced connection between decentralisation and corruption, characterised by an initial learning curve for local governments. Our research contributes to the limited literature on sub-national decentralisation and corruption, offering insights into the dynamic nature of this relationship. The findings have important implications for policymakers and development practitioners, highlighting the need for targeted support during the transition to decentralised governance.

Keywords

Water supply; local governance; decentralisation; corruption

Subject

Business, Economics and Management, Business and Management

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