Intermunicipal cooperation, integration forms, and vertical and horizontal effects in Japan

Abstract

Abstract This article identifies the effects of intergovernmental relations, particularly vertical relations between municipalities and higher levels of government where Institutional Collective Action has traditionally been under‐discussed, on types of collaborative benefits and different integration forms. The analysis was conducted using data from municipalities on the capital‐intensive service of waste management. The findings reveal that favorable horizontal relationships between municipalities enhance their capacity to solve both municipal and regional issues. The study also found that a high level of benefits emerged in contracted services when the horizontal relationship was highly favorable. In addition, vertical relationships with higher‐level governments contributed to improving fiscal efficiency, with greater perceived benefits of collaboration in the case of special district governments. The results suggest that while autonomous horizontal collaboration increases municipal capacity to solve issues, establishing collaborative relations with organizations from outside the municipality has the potential to generate an efficient integration system.

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