Ethics in Government Finance

The Fiscal Effects of Economic Immigration on Subnational Government Finance in Poland

e-Finanse ◽

10.2478/fiqf-2019-0005 ◽

2019 ◽

Vol 15 (1) ◽

pp. 45-58

Author(s):

Marzanna Poniatowicz ◽

Agnieszka Piekutowska

Keyword(s):

Social Policy ◽

Income Tax ◽

Research Question ◽

Personal Income Tax ◽

Government Finance ◽

Subnational Government ◽

Migration Research ◽

The Impact ◽

High Share

AbstractThe aim of the paper is to analyse the effects of economic immigration on subnational government finance (SNG) in Poland. The goal to achieve is to answer the following research question: what are the fiscal effects of immigration on SNG budget revenues and expenditures. To answer this question, logarithmic models were developed. The analysis refers to the years 2007-2016. In this respect, data from Statistics Poland - referring to budget revenues and expenditures of communes, cities of district status, districts and voivodeships - were used. As far as immigration statistics are concerned, data from the Ministry of Family, Labour and Social Policy were used. The results indicate an increase in both revenues and expenditures of SNG as a result of immigration. Such results can be explained inter alia by the nature of migration - research were focused on economic immigration. Results confirm that the level of employment of foreigners is one of the determinants shaping the fiscal effect of immigration. Moreover, the impact of economic immigration on SNG budget revenues and expenditures depends on the structure of this budget. This explains the differentiated results of the analysis of the impact of immigration on SNG in different countries. The positive correlation between immigration and SNG revenues in Poland can be associated with a high share of subnational governments in personal income tax revenues as this tax is one of the main categories of SNG revenues. Furthermore, results show that the impact of immigration on local government budgets in Poland is modest. This confirms the conclusions drawn by other authors (e.g. Auerbach and Oreopoulos), that in the long term, immigration cannot be considered as a potential instrument for resolving fiscal imbalances.

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Linking Public Finance to Local Government Finance: Some Critical Revelations

SSRN Electronic Journal ◽

10.2139/ssrn.2183878 ◽

2012 ◽

Author(s):

Wellington Jonga

Keyword(s):

Public Finance ◽

Local Government ◽

Government Finance ◽

Local Government Finance

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Five European Systems of Local Government Finance

SSRN Electronic Journal ◽

10.2139/ssrn.3382179 ◽

2018 ◽

Author(s):

Jan Herczynski

Keyword(s):

Local Government ◽

Government Finance ◽

Local Government Finance

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Liberal development, 1925–46

10.1093/oso/9780198723349.003.0005 ◽

2017 ◽

Author(s):

John Toye

Keyword(s):

Developing Countries ◽

Economic Development ◽

Exchange Rate ◽

Developing Country ◽

Trade Protection ◽

Communist Country ◽

Economic Policies ◽

Government Finance ◽

Soviet Government ◽

Experimental Economic

Keynes’s writings are often disregarded in the context of economic development, overlooking that Russia was a developing country in his lifetime. He wrote about the experimental economic techniques that the Soviet government employed. He visited Russia three times and wrote A Short View of Russia in which he explained and criticized Bolsheviks’ policy of export and import monopolies, an overvalued exchange rate, inflationary government finance, and the subsidization of industry. These were policies that many developing countries adopted after decolonization. Keynes’s conclusion was that they were inefficient and that ‘bourgeois economics was valid in a communist country’. Did Keynes change his mind in the 1930s? If anything, he grew more harshly critical of Soviet economic policies and carefully distinguished them from his own endorsement of moderate trade protection and government supplementary investment in times of depression.

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