scholarly journals Fiscal Decentralisation, the Size of the Public Sector, and Economic Growth in Turkey

10.1068/c0421 ◽  
2005 ◽  
Vol 23 (1) ◽  
pp. 3-19 ◽  
Author(s):  
Isa Sagbas ◽  
Huseyin Sen ◽  
Muhsin Kar

The aim of this study is to examine the impact of fiscal decentralisation on the size of the public sector and economic growth in Turkey. An empirical test of the Leviathan hypothesis by using recently developed econometrical tools shows that fiscal decentralisation does not curb the growth of central government. The finding is not compatible with explanations of the efficiency benefits of greater decentralisation. An investigation of the impacts of fiscal decentralisation on economic growth by utilising time series in a framework of the production function for the period 1982–2000 and cross-section analyses on sixty-seven provinces indicates that there is a negative relationship between fiscal decentralisation and economic growth.

2007 ◽  
Vol 8 (1) ◽  
pp. 28-40 ◽  
Author(s):  
Michael Rauscher

Abstract The paper analyses the impact of tax competition on innovation in the public sector. It is shown that the effects of increased mobility of the tax base on innovation and growth are ambiguous. The negative relationship is more likely, however. Moreover, it is shown that a Leviathan government may be induced to spend a larger share of its budget on unproductive activities.


2018 ◽  
Vol 10 (3) ◽  
pp. 221-243
Author(s):  
Livio Di Matteo ◽  
Thomas Barbiero

There is considerable evidence that the size of the public sector can influence an economy’s rate of economic growth. We investigate public sector spending of central governments and economic performance in two G7 countries over the long-term, Canada and Italy. Their economic performance has diverged in the last 25 years and it is worth investigating whether the size of government was a contributing factor. We find that in both the case of Canada and Italy the size of central government spending directly affects the performance of their economies in an inverse U-shaped relationship known as a Scully/BARS Curve. These results suggest that along with modifying current central government size, other levels of governments may need to shrink their own spending. The fact that the amount spent by government on pensions as a percentage of GDP in Italy is nearly 4 times that in Canada may partly explain the higher level of Italy’s public debt as well as an indirect contributing factor to economic stagnation in the last 25 years.


2011 ◽  
Vol 7 (3) ◽  
pp. 229-234 ◽  
Author(s):  
Peter Scott

PurposeThe purpose of this paper is to consider whether recent changes in higher education – notably a tripling of student fees and the withdrawal of most direct public funding for teaching – pose fundamental challenges for the pattern of governance, leadership and management in colleges in universities. It considers the impact not only of these visible, politically‐driven changes but also of less visible and longer‐terms shifts in curriculum, teaching delivery, learning cultures and research organisation.Design/methodology/approachHigher education has changed more than most other publicly funded services. Within the space of two generations it has moved from being a collection of institutions catering for an academically (and socially) selected elite, to become a mass system enrolling almost half of young adults – and an increasing proportion of adult students. Yet its governance and management have been marked by continuity. This paper considers the challenges that this greatly extended role for higher education poses for leadership – but in the context of stable arrangements for governance and management. Higher education leadership is also compared, and contrasted with, leadership in other parts of the public sector.FindingsAlthough higher education has been influenced by the New Public Management, it has changed less than other publicly funded services. Although Vice‐chancellors have taken on many of the trappings of executive leaders, most continue to be drawn from traditional academic backgrounds. Few professional managers have broken through into top leadership roles. Governance arrangements, in particular, have changed little – posing issues of strategic oversight and management accountability. Nevertheless, universities have demonstrated remarkable resilience and adaptability, experiencing few of the crises (financial and otherwise) common in other parts of the public sector. This apparent paradox may indicate how effective university leadership may be in the context of managing more open and distributed “knowledge” organisations.Originality/valueConventional wisdom, within central government and elsewhere, suggests that higher education may be experiencing a “deficit” in relation to modern leadership cultures. This paper challenges that assumption, suggesting that other parts of the public sector, especially, those employing a large number of expert and autonomous professionals, could learn from the experience of universities.


2014 ◽  
Vol 64 (4) ◽  
pp. 441-461 ◽  
Author(s):  
Fernando Toboso

This paper investigates the evolution of sub-central government borrowing in Spain over the period 1996–2011. The arguments and figures provided show that the intense process of political and fiscal decentralisation that took place over the 1990s and 2000s did not lead to higher debt ratios in terms of GDP at these tiers of government until 2007. Although a kind of overspending bias was in effect until the late 2000s, the paper shows that the evolution of GDP and tax revenues provided regional and local governments with enough resources to vigorously pursue their devolved public policy responsibilities and still keep their debt ratios under control. However, since 2008, when the world financial crisis broke out, the situation has changed dramatically. Even though the crisis originated in the financial sector, the paper concludes by stressing the importance of creating incentives and setting controls through institutional arrangements characterising multilevel government for all tiers of government to save in periods of economic growth in order to confront the impact of recession once it comes.


2017 ◽  
Vol 40 (1-4) ◽  
pp. 67-75
Author(s):  
Ram Briksh Mandal

This study aims to examine the impact of corruption on economic growth in Nepal for the period 2004 - 2017. The result of the regression analysis shows that there is a negative relationship between the dependent variable (GDP) and corruption level in Nepal. This means that as the level of corruption activities increases, economic growth decreases significantly. Based on the findings, the study therefore recommend as follows: The activities of the anticorruption agencies in Nepal such as The Commission for the Investigation of Abuse of Authority (CIAA) should be strengthened; the public should be educated about the problems that corrupt practices create for the economy and the society at large, and be discouraged from participating incorrupt practices. Nepal should put in leadership positions honest individuals who would serve as role models to minimize the negative consequences of corruption with its negative impact on the development and growth of Nepal; corruption is easily growing in Nepal because government involvement in economic decision making is high.


Agriekonomika ◽  
2017 ◽  
Vol 6 (2) ◽  
pp. 164 ◽  
Author(s):  
Nor Qomariyah ◽  
Suharno Suharno ◽  
D. S. Priyarsono

<p><em>Kemiskinan menjadi permasalahan utama bangsa Indonesia, jumlah penduduk miskin sebesar 28.55 juta orang (11. 47%), sementara ketimpangan pendapatan meningkat hingga mencapai 0.41 (BPS, 2013). Penelitian ini bertujuan untuk mengevaluasi dampak Dana Alokasi Khusus (DAK) yang berupa conditional grant terhadap pembangunan pertanian, kemiskinan, dan ketimpangan pendapatan. Penelitian ini menggunakan model persamaan simultan dengan data time series tahun 2009-2013 dan data cross section pada 11 provinsi di Indonesia. Metode untuk estimasi parameter menggunakan 2SLS. Hasil simulasi menunjukkan bahwa peningkatan alokasi DAK jalan dan irigasi dapat meningkatkan kinerja fiskal, sektor PDRB pertanian, total PDRB, dan total penyerapan tenaga kerja, tetapi penyerapan tenaga kerja sektor pertanian menurun disebabkan adanya kenaikan upah, menurunkan ketimpangan pendapatan dan mengurangi kemiskinan baik di daerah pedesaan maupun perkotaan. Penelitian ini merekomendasikan bahwa pemerintah pusat hendaknya meningkatkan injeksi dana langsung ke daerah lewat dana alokasi khusus (DAK) bidang infrastruktur karena dampaknya efektif menurunkan kemiskinan.</em></p><p>THE IMPACT OF FISCAL TRANSFER (CONDITIONAL GRANT) ON AGRICULTURAL DEVELOPMENT, POVERTY AND INEQUALITY : PANEL ANALYSIS DATA</p><p>ABSTRACT</p><p><em>Poverty is the main problem in Indonesia, the number of the poor is 28.55 million people (11.47%), while income inequality increased until 0.41 (BPS, 2013). The main objective of this study was to evaluate the impact of Special Allocation Fund on agricultural development, poverty, and income inequality. This study uses simultaneous equation models with time series data of 2009-2013 and cross section data of 11 provinces in Indonesia. Method for parameter estimation is 2SLS. The simulation results show that the increased allocation of DAK road and irrigation can increase fiscal performance, the agricultural sector GRDP, total GRDP, but the labour force absorbtion of agricultural decreases because of the increasing of wages, the decreasing of income inequality and the reducing of poverty either in rural or urban areas. This study recomends that the central government should improve the injection of funds directly to the regions through a special allocation fund for rural infrastructure and agriculture because it gives an effective impact on poverty alleviation</em><strong><em>.</em></strong></p><p><em>Keywords : Special allocation fund, poverty, income inequality, fiscal transfer.</em></p>


2007 ◽  
Vol 8 (1) ◽  
pp. 125-142
Author(s):  
George Sfakianakis

The Greek economy was growing at high rates during the post-war period and up until the middle of the 1970s, while afterwards real GDP growth rates fell significantly and remained on average very low during the 1980s. Using a generalised production function approach, this paper aims at assessing the importance of various factors in explaining this slowdown, in an attempt to isolate factors that could still be at play during the current cycle. More specifically, emphasis is placed on the share of the public sector, capital accumulation, education, the impact of international developments in productivity growth, and the ability of the Greek economy to exploit technology transfer. Main findings include the negative relationship between the size of the public sector and growth and the fact that during that period Greece seemed unable to take advantage of accumulated knowledge and R&D capital in other parts of the world. Causality tests are performed in order to verify the robustness of these findings. Also, a potentially appropriate economic policy mix is evaluated accordingly.


2019 ◽  
Vol 16 (1) ◽  
pp. 189-202
Author(s):  
Ola Honningdal Grytten

The size of the public sector is an important tool in public governance. Public sector size may fuel both economic growth and political influence over the economy. By compiling and processing data from different sources of public accounts the paper aims at mapping the development of key financial indicators for the Norwegian central government sector during the transition period from the mid 19th to the mid 20th century. The data enable us to give measures of the size of the public sector alone and compared to the overall economy. It is found that the sector started its continuous growth before politicians deliberately started to increase the sector’s size of the total economy. The paper also finds that an increase of the public sector often, but not always, reflects political economy regimes. Persistent growth in public finances as a tool for economic policy making did not take place before the introduction of the social-democratic regime in 1935. The paper also concludes that economic growth started before the growth in the public sector, suggesting that public sector growth might as well be a result of economic growth or vice versa.


2016 ◽  
Vol 1 ◽  
pp. 24-35
Author(s):  
Saefudin A Safi'i

The downfall of the New Order Regime in 1998 brought about significant change to Indonesia’s public sector.  Law number 22 of 1999, further refined by Law 32 of 2004, provide legal bases for district governments to administer the public sector. The central government also introduces the notion of good governance through the promulgation of various regulations. For Madrasah however, decentralization policy failed to provide clear legal bases as to how it relates to district government. Law 32 of 2004 verse 10 article 3 retains the centralized management by the Ministry of Religious Affairs. This however does not exclude Madrasah from public demand of implementing the principle of good governance. This study analyses the dynamics of principal-ship both in the Sekolah and the Madrasah in the era of decentralization. By comparing two research sites, this study sought to create better understanding about the context by which the organization climate of two different schools are shaped, and how principals and teachers perceives the notion of school leadership in the light of most recent policy development. To do this, interviews were undertaken and questionnaire-based data collection was also conducted. The study found that in the ground level implementation of decentralization policy, Sekolah developed more rigorous leadership compared to that in the Madrasah. This research recommends the adoption of stronger regulation regarding principal-ship of Madrasahs in order to create an environment that is more in tune with the spirit of public service reforms.


2020 ◽  
Vol 39 (1) ◽  
Author(s):  
Adiqa Kiani ◽  
Ejaz Ullah ◽  
Khair Muhammad

The main objective of this study is to investigate the impact of poverty, globalization, and environmental degradation on economic growth in the selected SAARC countries. This study is employed panel Autoregressive Distributive Lag (ARDL) technique for empirical analysis using selected SAARC regions including India, Pakistan, Bangladesh, Nepal and Sri Lanka over the period of 1980 to 2018. Globalization impacts economic growth positively and significantly.  In addition to this the significant negative relationship is found between population and economic growth. The results show that poverty is positively related with environmental degradation. Furthermore, the results indicate that globalization is positively and significantly associated with environmental degradation in the SAARC region. Finally, the results show that urbanization is positive and significantly associated with environmental degradation, which could be the serious concerns for the policy makers to control.


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