Replication Data for: Vertical Competition as a Mechanism of Local Public Goods Provision: Evidence from India

Party system is a fundamental foundation for efficient decentralization, which facilitates the provision of local public goods. However, party competition often impedes this process due to collusion among parties. In addressing this issue, in this paper, we argue that the type of party competition is important. Vertical competition, referring to the competition between national and regional parties, facilitates the provision of local public goods, whereas other types of competition do not. The party system should be designed to prevent collusion among parties, ensuring that decentralization functions effectively under this condition. Our analysis of Indian states from 2004 to 2021 supports this hypothesis.