The role of transparency in influencing revenue generation, public participation, and allocation efficiency in Ghana

Authors

  • Ernest Oti-Akenteng Valley View University, Oyibi, Accra, Ghana
  • Evans O. N. D. Ocansey Valley View University, Oyibi, Accra, Ghana
  • Felix Oppong Asamoah Valley View University, Oyibi, Accra, Ghana

Keywords:

Transparency, Governance, Revenue Generation, Public Participation, Allocation Efficiency, Ghana, Institutional Quality, Economic Development, Political Stability

Abstract

Transparency in governance plays a crucial role in promoting accountability, efficiency, and citizen engagement. However, its impact on revenue generation, public participation, and allocation efficiency remains underexplored in the Ghanaian context. This study examines the mediating role of transparency in shaping these governance outcomes. The study aims to assess how transparency influences revenue generation, public participation, and allocation efficiency in Ghana. It also explores the extent to which institutional quality, economic development, and political stability interact with transparency to shape governance outcomes. The study employs quantitative secondary data analysis spanning from 2010 to 2022, sourced from the World Bank, the Bank of Ghana, and international governance indices. The data is analyzed using descriptive statistics, correlation analysis, stationarity tests, and multiple regression models to establish the relationship between transparency and governance performance. The results reveal that transparency significantly enhances public participation while showing a positive but marginally insignificant effect on revenue generation. However, transparency alone does not significantly influence allocation efficiency without strong institutional and political frameworks. Economic development negatively affects both revenue generation and allocation efficiency, highlighting governance challenges in growing economies. The study recommends strengthening digital transparency initiatives, enhancing institutional quality, and integrating emerging technologies like AI-driven audits and blockchain-based public finance tracking. Additionally, policies should promote participatory governance to enhance citizen engagement while ensuring that transparency reforms are embedded in broader governance structures.

References

Arkorful, V. E., Lugu, B. K., Hammond, A., & Basiru, I. (2021, May). Decentralization and citizens’ participation in local governance: Does trust and transparency matter?–An empirical study. In Forum for development studies (Vol. 48, No. 2, pp. 199-223). Routledge.

Aziz, S., & Wediyanto, E. (2024). The influence of transparency, accountability, human resource competence, technological innovation, and public participation on local government financial performance. Priviet Social Sciences Journal, 4(12), 1-11.

Bakhtiar, B. (2021). Accountability and Transparency in Financial Management of Village Fund Allocations in Achieving Good Governance. ATESTASI: Jurnal Ilmiah Akuntansi, 4(2), 230-245.

Barreiro, P. L., & Albandoz, J. P. (2001). Population and sample. Sampling techniques. Management mathematics for European schools, 1(1), 1-18.

Benito, B., Guillamón, M. D., & Ríos, A. M. (2021). Transparency and efficient management in local governments. Cities, 115, 103234.

Chaleunvong, K. (2009). Data collection techniques. Training Course in Reproductive Health Research Vientine.

Cifuentes-Faura, J., Benito, B., Guillamón, M. D., & Faura-Martínez, Ú. (2023). Relationship between transparency and efficiency in municipal governments: Several nonparametric approaches. Public Performance & Management Review, 46(1), 193-224.

De Simone, E., Bonasia, M., Gaeta, G. L., & Cicatiello, L. (2019). The effect of fiscal transparency on government spending efficiency. Journal of Economic Studies, 46(7), 1365-1379.

Enshassi, A. A., & Kullab, A. S. (2014). Community participation in local governments: public consulting and transparency in Gaza Strip, Palestine. International Journal of Sustainable Construction Engineering and Technology, 5(1), 9-21.

Firman, F., Sumatono, S., Muluk, M. K., Setyowati, E., & Rahmawati, R. (2024). Enhancing Citizen Participation: The Key To Public Service Transparency. Journal of Law and Sustainable Development, 12(1), e2937-e2937.

Harrison, T. M., & Sayogo, D. S. (2014). Transparency, participation, and accountability practices in open government: A comparative study. Government information quarterly, 31(4), 513-525.

Kim, S., & Lee, J. (2012). E‐participation, transparency, and trust in local government. Public administration review, 72(6), 819-828.

Kim, S., & Lee, J. (2017). Citizen participation and transparency in local government: do participation channels and policy making phases matter?.

Kim, S., & Lee, J. (2019). Citizen participation, process, and transparency in local government: An exploratory study. Policy Studies Journal, 47(4), 1026-1047.

Majid, U. (2018). Research fundamentals: Study design, population, and sample size. Undergraduate research in natural and clinical science and technology journal, 2, 1-7.

Mazhar, S. A., Anjum, R., Anwar, A. I., & Khan, A. A. (2021). Methods of data collection: A fundamental tool of research. Journal of Integrated Community Health, 10(1), 6-10.

Morgan, G. A., & Harmon, R. J. (2001). Data collection techniques. Journal-American Academy Of Child And Adolescent Psychiatry, 40(8), 973-976.

Muthomi, F., & Thurmaier, K. (2021). Participatory transparency in Kenya: Toward an engaged budgeting model of local governance. Public administration review, 81(3), 519-531.

Nagriwum, T. M., Richard, W., Gbolo, S. S., Kuunyig, M., Seth, D., & Amokase, M. A. (2023). Transparency and Accountability in Local Government Financial Management in Ghana: A Case of Sunyani West Municipal Assembly. International Journal of Research and Innovation in Social Science, 7(9), 689-710.

Rebolledo, M., Medina, R. Z., & Rodríguez-Virgili, J. (2016). Transparency, accountability and participation in local governments: a comparative study of Spanish Council Websites. Media studies, 7(14).

Ríos, A. M., Guillamón, M. D., & Benito, B. (2024). The influence of local government transparency on the implementation of the sustainable development goals in municipalities. Journal of Public Budgeting, Accounting & Financial Management, 36(4), 417-444.

Ríos, A. M., Guillamón, M. D., & Benito, B. (2024). The influence of local government transparency on the implementation of the sustainable development goals in municipalities. Journal of Public Budgeting, Accounting & Financial Management, 36(4), 417-444.

Rocha Valencia, L. A., Queiruga, D., & González-Benito, J. (2015). Relationship between transparency and efficiency in the allocation of funds in nongovernmental development organizations. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 26, 2517-2535.

Røge, K. M., & Lennon, N. J. (2018). A study on the criteria of internal transparency, efficiency and effectiveness in measuring local government performance. Financial Accountability & Management, 34(4), 392-409.

Rotimi, O., & Abdul-Azeez, A. A. (2013). Revenue generation and transparency in Nigeria oil and gas industry: Position of Nigeria Extractive Industries Transparency Initiative (NEITI). Research Journal of Finance and Accounting, 4(6), 99-114.

Saadu, Y., Yerima, H., & Jamo, I. A. (2023). Effect of Transparency on Revenue Generation Capacity of Federal Inland Revenue Service. FUGUS Journal of Public Administration and Management | Vol. 2, No. 1; 2811-1699

Salman, R. T., Sanni, P., Olaniyi, T. A., & Yahaya, K. A. (2022). Governance transparency of tax revenue performance in West Africa.

Seetharam Sridhar, K., Gadgil, R., Dhingra, C., Seetharam Sridhar, K., Gadgil, R., & Dhingra, C. (2020). Good governance in the transparency, accountability, public participation and capacity (TAP-C) framework. Paving the Way for Better Governance in Urban Transport: the Transport Governance Initiative, 1-18.

Stratton, S. J. (2021). Population research: convenience sampling strategies. Prehospital and disaster Medicine, 36(4), 373-374.

Suwanda, D., & Suryana, D. (2020). Human resource development in local governments: Increased transparency and public accountability. Journal of Asian Finance, Economics and Business, 8(1).

Talib, N. F. M., Ismail, R. A. M., & Adelabu, S. A. (2017). Transparency in Malaysian local government administration. The overview of Internally Generated Revenue (IGR). International Journal of Business Management, 1(1), 22-27.

Touchton, M., Wampler, B., & Peixoto, T. (2021). Of democratic governance and revenue: Participatory institutions and tax generation in Brazil. Governance, 34(4), 1193-1212.

Tran, T. B., & La, H. A. (2022). Participation, transparency and trust in local governance in transitional countries: the case of Vietnam. Post-Communist Economies, 34(4), 478-498.

Willson, S., & Miller, K. (2014). Data collection. Cognitive interviewing methodology, 15-33.

Yuniarta, G. A., & Purnamawati, I. G. A. (2020). Key elements of local government transparency in new public governance. Problems and Perspectives in Management, 18(4), 96-106.

Published

2025-05-23

How to Cite

Oti-Akenteng, E., Ocansey, E. O. N. D., & Asamoah, F. O. (2025). The role of transparency in influencing revenue generation, public participation, and allocation efficiency in Ghana. International Journal of Economic Perspectives, 19(5), 2394–2423. Retrieved from http://ijeponline.org/index.php/journal/article/view/1010

Issue

Section

Peer Review Articles