Published Papers and Book Chapters
Chachu, D et al. 2023. Subnational governance in Ghana: a comparative assessment of data and performance. In: Faguet J. & Pal S (eds.), Decentralised Governance. London: LSE Press. DOI: https://doi.org/10.31389/lsepress.dlg.j
In this book chapter, we conceptualize an ideal framework that captures three reinforcing levers for measuring local government performance in sub-Saharan Africa, specifically Ghana, namely policy pronouncement, political processes and internal operations, and policy implementation. Given data limitations we employ a ‘next best’ approach to apply this framework and measure local government performance by combining a weighted ‘quality of reporting’ measure with selected available measures on political processes and internal operations, and policy implementation, so as to construct a composite index for local government performance (LGI). We also look at the relationship between our performance indices and other indices of local government performance in Ghana, as well as poverty headcounts. We find that, on average, urban districts perform better than their rural counterparts, and districts located in the southern half of Ghana perform better. Our constructed composite index is positively correlated with indices from Ghana’s district league tables. It has a negative relationship with poverty headcount in districts, indicating that districts with lower poverty incidence are more effective and responsive to their citizens. The findings provide a snapshot of institutional performance across Ghana’s districts and offer a more comprehensive basis for considering variations in subnational institutional performance, including the effects of decentralization than previous studies of Ghana – or indeed African countries more broadly
Adhikari, B., King, J., Vadlamannati, K. C., & Chachu, D. O. (2023). Why do some natural resource-rich countries adopt prudent fiscal rules? An empirical analysis. The Extractive Industries and Society, 14, 101234.
What is the relationship between natural resource wealth and the adoption of fiscal rules that may help resource-rich states mitigate the effects of a so-called resource curse? We argue that the adoption of fiscal rules by resource-rich countries is conditional on a number of previously unconnected factors, including whether states receive large amounts of rent from natural resources, have high levels of domestic institutional quality, or face external pressure to adopt such rules. Using panel data on 166 countries during the 1985–2015 period and accounting for current levels of democracy and the quality of domestic institutions, we find that countries deriving rents from natural resources are less likely to adopt prudent fiscal rules in general. However, the negative effect of natural resource wealth on the likelihood of states adopting fiscal rules is largely concentrated in countries with low institutional quality. Furthermore, we find that external pressure in the form of fiscal conditionality from the IMF increases the likelihood of states implementing fiscal rules, suggesting that there are ways that states can mitigate the ‘resource curse.’ These findings are robust to alternative data, model specifications, and estimation strategies, including the instrumental variable approach.
Chachu, D. O., & Nketiah-Amponsah, E. (2022). The Fiscal resource curse: What’s China’s natural resource appetite got to do with it? International Review of Applied Economics, 1-18.
Discovering non-renewable natural resources should be good news. However, the notion of a natural resource curse suggests otherwise. A related term, fiscal resource curse, has emerged. It generally refers to the inability of countries to raise taxes from a broad base in the presence of natural resources. We examine the validity of a fiscal resource curse in developing countries using a more comprehensive dataset and a novel instrumental variable strategy. Following her accession to the World Trade Organization in 2001, China’s engagement in the non-renewable resource trade has increased severalfold, driving up commodity prices and raising resource revenues among exporting countries. We employ this so-called ‘China-shock’ to estimate the causal effect of resource revenues on non-resource tax revenues. Once we account for the ‘China shock’, we do not find consistent evidence of a fiscal resource curse. For some specifications, a percentage point increase in resource revenues as a percentage of GDP leads to about a 0.3 percentage point increase in non-resource taxes as a percentage of GDP. Our results suggest that policymakers in resource-rich countries have an opportunity to maximize returns from the resource sector while diversifying their domestic revenue base.
Chachu, D. O., (2020). Domestic Revenue Displacement in Resource-Rich Countries: What’s Oil Money got to do with it? Resources Policy 66(2020) 101656. Elsevier.
Cross-country studies on the effect of hydrocarbon revenues and non-hydrocarbon tax effort are only now emerging. Using an expanded global dataset in a two-stage least squares framework, we confirm a displacement effect. A percentage point increase in hydrocarbon revenues displaces non-hydrocarbon revenues by 0.2 to 0.3 percentage points. With low levels of domestic revenue and a debt crisis looming for many developing countries, resource-rich countries need to leverage on their resource wealth to invigorate the non-resource sectors of their economies. This should widen the tax base and optimize the tax take for oil-rich countries over the long haul.
Working Papers, Technical Notes and Other Publications
1. Chachu, D.O., Danquah M., & Gisselquist R. (2023). Subnational Governance in Ghana: A Comparative Assessment of Data and Performance. Working Paper
2. Oppel, A., McNabb K. & Chachu, D. O. (2022). The Dynamics of Domestic Revenue Mobilization Across Four Decades. UNU-WIDER Working Paper 2022/1. Helsinki. Finland
3. Gafa D., & Chachu D. O. (2021). Explaining Food Insecurity in Sub-Saharan Africa. The role of Governance and Institutions. 55th Biannual Research Workshop. Working Paper. African Economic Research Consortium. Nairobi, Kenya.
4. McNabb K., Oppel, A., & Chachu, D. O. (2021). Government Revenue Database (2021). Source Selection. WIDER Technical Note 2021/11. UNU-WIDER. Helsinki. Finland.
5. Chachu D. O (2021). Tax Revenue Outcomes in Resource-Rich Countries. Which Institutions Matter? UNU-WIDER Working Paper Series. Helsinki Finland.
6. Chachu D. O (2021). Review of Sub-National Institutional Performance in Ghana. UNU-WIDER Background Note. Helsinki Finland.
7. Krishna C. Vadlamannati, Chachu D. and Tamazian A., 2020. Do Natural Resource Wealth Countries Adopt Fiscal Policy Rules? An Empirical Analysis. Working Paper
8. Peter Quartey, Turkson F., Abbey E., Chachu D., and Butu M. 2020. Cost-Benefit Analysis of Interventions in the Industrial Sector of Ghana. Published Report. Ghana Priorities Project. Copenhagen Consensus Centre.
9. Peter Quartey, Chachu D. and Abbey E, 2019. Technological Innovation, Firm Value-Added and Employment in Ghana. Conference Paper. Second African Research Universities Alliance Conference, November 18th -20th, Nairobi, Kenya.
10. Daniel Chachu, 2019. Implementation of a project-based comprehensive monitoring and evaluation strategy in Ghana and Cote D’Ivoire: Key lessons. African Evaluation Journal. 7(1)
11. International Labour Organization/UCW, 2016: Child Labour and Youth Decent Work Deficit in Ghana. http://www.ucw-project.org/attachment/13052016890Ghan_child_labour_youth_employment_report.pdf [Chapter Contribution].
12. Daniel Chachu and Ricardo Furman, 2014: Strengthening the third leg of the tripod: Initial lessons for improving knowledge management in the implementation of a Comprehensive Monitoring and Evaluation Strategy, 7th African Evaluation Conference, March 3rd - 7th, Yaoundé, Cameroun. Poster Presentation Grant Award.
13. Ricardo Furman and Daniel Chachu, 2013: Lessons on initial implementation of an Integrated M&E Strategy in child labour projects in Ghana and El Salvador. American Evaluation Association Annual Conference, October 14th – 19th, Washington DC, USA.
Other Research and Field Experience
· Cost Effectiveness Analysis of selected programmes in the Education Sector of Ghana. 2011. ISODEC/Global Development Network collaboration. Researcher/Policy Analyst
· Do oil revenues crowd out non-oil revenues? Re-examining the evidence and lessons for Ghana. Masters’ Thesis submission to the Centre for Development Economics, Williams College, MA, USA 2011.
· HIV and AIDS financing and spending in Sub-Saharan Africa: A Local Government Perspective. 2010. ISODEC/IDASA, South Africa. Researcher/Policy Officer
· Programme Budgeting and Benefit Incidence Analysis in the education, water and health sectors. 2010. ISODEC/Global Development Network. Researcher/Policy Officer
· Analysis of the 2009 Budget Statement and Economic Policy of Government of Ghana: Gender and children’s perspective, UNICEF 2009. Researcher/Policy Analyst
· Pre-testing of instruments for monitoring state obligations to education rights under the economic, social and cultural rights framework of the United Nations, May 2009, ISODEC. Policy Officer
· Analysis of the 2008 Budget Statement and Economic Policy of Government of Ghana: Gender and children’s perspective, UNICEF 2008. Policy Analyst
· Needs assessment of stakeholders in the extractive sector in Ghana, Open Society Initiative for West Africa/ISODEC 2008. Policy Officer.
· Gender and Aid effectiveness study in Ghana, Ghana Civil Society Aid Effectiveness Forum, 2008
· A comparative study of use of debt relief and poverty reduction resources: Ghana and Zambia, February 2007, Alliance for Poverty Eradication: Research Assistant.
· An assessment of the Ghana School Feeding Programme, March 2007, Oxfam GB/ISODEC study: Research Assistant.
· Socio-cultural barriers to girl child education (documentary): The case of Sayoo in the West Mamprusi district. Jan-Aug 2007. World University Services of Canada/ISODEC: Supervisor.
· The effectiveness of Aid, Bole district. 2007, ISODEC/African Monitor. Research Assistant
· Financing of Water and Sanitation, Water Aid-funded, pilot - Bongo district, June-July 2007. Research Assistant
· Transparency and Accountability study: Tracking of education and health expenditure at the regional and local levels, Aug/Sept 2007, Brookings Institution/ISODEC. Research Assistant
· “Dossier on teachers” - Assessing teacher situation in Lamashegu “B” Circuit, Tamale. Member of the team of Research Assistants, NNED, February 2006.
· Pilot tracking of government of Ghana projects and programmes. Member of the team of Research Assistants, ISODEC, 2005.
· A Community Score Card: West Gonja (Damongo) District. Member of the team of Research Assistants, ISODEC/Institute for Policy Alternatives, 2005.
· Survey on cost of basic education: Tracking of capitation grants in Tolon-Kumbungu district. Team Leader, Northern Network for Education Development (NNED) 2005.
· Pilot study in five districts on assessing Ghana’s commitment to the Convention on the rights of the child, June-July 2006, ISODEC/Save the Children UK: Research Assistant.
· The Cost-Benefit Analysis of the Rehabilitation of the Tema International Trade Fair Centre, Department of Economics, University of Ghana, Legon, May 2004.
· Presidential poll on 2004 Presidential elections: Research Assistant (Ashaiman/Middle East): Institute for Economic Affairs (IEA).
· Tracking of District Assemblies’ Common Fund in selected districts. Member of the team of Research Assistants, ISODEC, 2004.
· Tracking of education budget in selected districts. Member of the team of Research Assistants, ISODEC, 2004.
· Assessing the impact of Economic Partnership Agreements on domestic industries: Case study of the poultry and tomato industries. Member of the team of Research Assistants, ISODEC, 2004/2005.