scholarly journals The relationship between fiscal decentralization and trust in government: evidence from the South Korean case

2020 ◽  
pp. 002085232093332
Author(s):  
Soojin Kim ◽  
Yunsoo Lee ◽  
Taehee Kim
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Public Trust ◽  
Government Policies ◽  
Trust In Government ◽  
South Korean ◽  
Revenue Sources ◽  
Long Run ◽  
Decentralized Governance

To date, many developing countries have continued to implement fiscally decentralized governance systems to respond to the diversified needs of local residents more effectively and to better act in line with the public interest. However, little is known about the fiscal decentralization–trust link. Focusing empirically on the South Korean case, this study examines how financially decentralized governance might increase government trustworthiness not just at the national level, but also at the local level. The results of multilevel regression and panel data analyses partly confirm the results of pro-fiscal decentralization studies in that the growth of local fiscal autonomy is positively and significantly related to public trust in government. Specifically, we find that as fiscal decentralization improves, levels of trust in local government also rise. In addition, our findings show that in terms of having higher levels of public trust in government, the impact of revenue decentralization tends to be greater than that of expenditure decentralization. This evidence implies that allowing local governments to have their own revenue sources rather than expenditure autonomy can be a way to better respond to people’s needs in the long run. Points for practitioners First, as fiscal decentralization improves, levels of trust in local government also rise. Second, allowing local governments to have their own revenue sources rather than expenditure autonomy can be a way to better respond to people’s needs in the long run. Third, government policies should aim to provide benefits to citizens for their own sake, such as by exercising effective delivery or improving the quality of public services and programs that are likely to be viewed positively by constituents. This could encourage citizens to engage with the current public-sector spheres in ways that affect their confidence and expectations of government policies and bureaucrats in a positive manner.

scholarly journals Game Theory-Based Analysis of Local Governments’ Behavioral Dissimilation in the Third-Party Soil Pollution Control under Chinese-Style Fiscal Decentralization

Land ◽  
2021 ◽  
Vol 10 (4) ◽  
pp. 389
Author(s):  
Caihua Zhou
Keyword(s):  
Local Government ◽  
Soil Pollution ◽  
Pollution Control ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Third Party ◽  
The Third ◽  
Party Control ◽  
The Third Party

The participation of a third party of the environmental service enterprise theoretically increases the level and efficiency of soil pollution control in China. However, Chinese-style fiscal decentralization may have a negative impact on the behaviors of participants, especially the local government. First, this paper conducts a positioning analysis on participants of the third-party soil pollution control in China and discusses the behavioral dissimilation of the local government under fiscal decentralization. Second, taking the government’s third-party soil pollution control as a case, a two-party game model of the central government and the local government is established around the principal-agent relationship, and a tripartite game model of the central government, the local government, and the third-party enterprise is designed around the collusion between the local government and the third-party enterprise. The results show that Chinese-style fiscal decentralization may lead to the behavioral dissimilation of local governments, that is, they may choose not to implement or passively implement the third-party control, and choose to conspire with third-party enterprises. Improving the benefits from implementing the third-party control of local governments and third-party enterprises, enhancing the central government’s supervision probability and capacity, and strengthening the central government’s punishment for behavioral dissimilation are conducive to the implementation of the third-party soil pollution control. Finally, this study puts forward policy suggestions on dividing the administrative powers between the central and local government in third-party control, building appraisal systems for the local government’s environmental protection performance, constructing environmental regulation mechanisms involving the government, market and society, and formulating the incentive and restraint policies for the participants in the third-party soil pollution control.

scholarly journals The Green Innovation Effect on Heavy-Polluting Enterprises Under the Environmental Protection Law

2021 ◽  
Vol 9 ◽  
Author(s):  
Leqian Ouyang ◽  
Daming You
Keyword(s):  
Environmental Protection ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Negative Impact ◽  
National Level ◽  
Green Innovation ◽  
Eastern Area ◽  
Long Run ◽  
The Difference ◽  
Financial Power

One of the main purposes of the 2015 Environmental Protection Law (EPL) of the People's Republic of China is to boost the green innovation of the enterprises. Using heavy-polluting enterprises as examples, this paper uses the Difference-in-difference analysis (DDD) technique to analyze the influence of EPL on the green innovation of enterprises under fiscal decentralization and enterprise heterogeneity. Results show that EPL exerts a negative impact on the green innovation of heavy-polluting enterprises at the national level, as well as those in the central and western areas specifically. The only presence of positive motivation for green innovation is being found in the eastern area, although, the motivation seems to be insignificant. The negative impacts have been lasting in the long run, especially for the low-performance enterprises in the central areas. As for the targeted implementation of EPL in China, local governments should make the best use of financial power under fiscal decentralization. This balanced approach is designed to motivate enterprises in different regions with various performance levels to develop green innovation based on their different weaknesses and strengths.

scholarly journals THE ROLE OF LOCAL GOVERNMENTS IN REGIONAL FINANCIAL MANAGEMENT FOR THE HANDLING OF THE COVID-19 PANDEMIC

Yurispruden ◽  
2021 ◽  
Vol 4 (2) ◽  
pp. 208
Author(s):  
Fahrul Abrori
Keyword(s):  
Local Government ◽  
Research Methods ◽  
Financial Management ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
The Government ◽  
The Stability ◽  
The Relationship

 ABSTRAKPandemi Covid-19 yang terjadi di Indonesia membuat pemerintah membuat kebijakan-kebijakan sebagai stimulus untuk menjaga kestabilan masyarakat dan perekonomian. Pemerintah pusat memberikan kewenangan kepada pemerintah daerah untuk mengelola keuangan daerah untuk menangani covid-19 di daerah masing-masing. Hal ini disebabkan karena pemerintah daerah lebih memahami kebutuhan daerahnya. Permasalahan yang diangkat Pertama, bagaimana hubungan Pemerintah Pusat dan Pemerintah Daerah dalam pengelolaan keuangan untuk penanganan pandemi Covid-19? Kedua, Apa peran Pemerintah Daerah dalam pengelolaan keuangan daerah untuk penanganan pandemi Covid-19? Menggunakan metode penelitian yuridis normatif dengan pendekatan perundang-undangan dan pendekatan konsep. Hubungan Pemerintah Pusat dan Pemerintah Daerah dalam Pengelolaan Keuangan untuk Penanganan Pandemi Covid-19 yaitu desentralisasi fiskal yang mana. Peran Pemerintah Daerah dalam Pengelolaan Keuangan Daerah untuk Penanganan Pandemi Covid-19 yaitu dengan melakukan refocusing kegiatan, realokasi anggaran, dan Penggunaan Anggaran Pendapatan dan Belanja Daerah.Kata kunci: Pemerintah Daerah, Pengelolaan Keuangan Daerah, Pandemi Covid-19 ABSTRACTThe Covid-19 pandemic in Indonesia led the government to make policies as a stimulus to maintain the stability of society and the economy. The central government authorizes local governments to manage local finances to deal with covid-19 in their respective regions. This is because the local government better understands the needs of the region. The issue raised first, how is the relationship between the Central Government and Local Government in financial management for the handling of the Covid-19 pandemic? Second, What is the role of local governments in regional financial management for the handling of the Covid-19 pandemic? Using normative juridical research methods with statutory approaches and concept approaches. The relationship between the Central Government and Local Government in Financial Management for the Handling of the Covid-19 Pandemic is fiscal decentralization. The role of local governments in regional financial management for the handling of the Covid-19 pandemic is by refocusing activities, reallocating budgets, and using regional budgets.Keywords: Local Government, Regional Financial Management, Covid-19 Pandemic

Fiscal Decentralization and Local Borrowing in Turkish Provinces

2016 ◽  
pp. 505-519
Author(s):  
Mehmet Serkan Tosun ◽  
Dilek Uz ◽  
Serdar Yılmaz
Keyword(s):  
Local Government ◽  
Spatial Econometrics ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Cross Sectional ◽  
Turkish Republic ◽  
Government Structure ◽  
History Of ◽  
The Government ◽  
Government Reforms

There have been important developments in the decentralization of the government structure in Turkey since the early 1980s. This paper examines the link between fiscal decentralization and local borrowing within Turkish provinces. It first discusses local government reforms throughout the history of the Turkish Republic with the focus on recent reform efforts and current local government structure. It then provides an empirical analysis of the effects of decentralization in Turkish provinces using cross-sectional and panel data approaches, and spatial econometrics. The dataset consists of 67 provinces from 1980 to 2000, and separately cross-sectional data on all 81 provinces for the year 2000. Using decentralization measures such as number of local governments per capita and ratio of own-source municipal revenue to total provincial tax revenue, and specific characteristics of the municipalities the analysis examines whether variations in local decentralization across these provinces and across time have had a significant impact municipal borrowing in those provinces.

scholarly journals Dampak Desentralisasi Fiskal terhadap Volatilitas Belanja Pemerintah Kabupaten/Kota di Indonesia

2019 ◽  
Vol 19 (1) ◽  
pp. 118-138
Author(s):  
Benedictus Raksaka Mahi ◽  
Syarah Siti Supriyanti
Keyword(s):  
Local Government ◽  
Government Spending ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Transparency ◽  
Before And After

The volatility of expenditures sub-local derived from central government transparency in transfers to local governments may aggravate sublocal economy. This study aims to analyze the eect of fiscal decentralization to the level of volatility of local government spending in 230 sub-local in Indonesia. We use two periods, before and after the implementation of Law No. 28 Year 2009. The regression results indicate that the volatility of local government spending may decrease if the degree of fiscal decentralization increases, especially at the time when districts implement that law. As responsive taxation can provide incentives for smooth spending for sub-local government. ================================= Volatilitas belanja pemerintah kabupaten/kota yang berasal dari ketidakpastian transfer pemerintah pusat kepada pemerintah daerah dapat memperburuk perekonomian kabupaten/kota. Penelitian ini bertujuan menganalisis pengaruh desentralisasi fiskal terhadap tingkat volatilitas belanja riil pemerintah pada 230 kabupaten/kota di Indonesia serta membandingkan data sebelum dan sesudah implementasi UU No. 28 Tahun 2009. Hasil menunjukkan semakin tinggi derajat desentralisasi fiskal, cenderung menurunkan volatilitas belanja riil pemerintah kabupaten/kota karena kemampuan fiskal kabupaten/kota cenderung meningkat setelah implementasi UU tersebut. Pajak properti merupakan sumber penerimaan daerah yang dapat diprediksi sehingga pemerintah kabupaten/kota dapat mengelola belanja daerahnya dengan lebih pasti dan terukur.

scholarly journals New mobile realities in mature staples-dependent resource regions: Local governments and work camps

2016 ◽  
Vol 35 (3) ◽  
pp. 500-517 ◽  
Author(s):  
Laura M Ryser ◽  
Greg Halseth ◽  
Sean Markey ◽  
Marleen Morris
Keyword(s):  
United States ◽  
Land Use ◽  
Local Government ◽  
Local Governments ◽  
The United States ◽  
Government Policies ◽  
Quality And Safety ◽  
Retention Strategies ◽  
Work Camps ◽  
Municipal Boundaries

In resource-dependent regions, work camps have reshaped workforce recruitment and retention strategies and relationships with communities as they are increasingly deployed within municipal boundaries. This has prompted important, but controversial, questions about local government policies and regulations guiding workforce accommodations to support rapid growth in resource regions. Even as mobile workforces become more prevalent, however, few researchers have examined the development, operations, and decommissioning of these work camps. Drawing upon the experiences of local governments in Australia, Canada, Scotland, and the United States, this research examines how mobile workforces are shaping the opportunities and challenges of planning and local government operations through work camps integrated in mature staples-dependent resource regions. Our findings reveal that while some industries have taken the initiative to implement new protocols and operating procedures to improve the quality and safety of work camp environments, local governments have underdeveloped policy tools and capacities to guide the development, operations, and decommissioning of work camps. Failure to purposefully address work camps as a land-use issue, however, is significant for mature staples-dependent towns that ultimately fail to capture taxation revenues while incurring the accelerating costs for infrastructure and services associated with large mobile workforces.

scholarly journals KEBIJAKAN PERIZINAN LINGKUNGAN HIDUP DI DAERAH ISTIMEWA YOGYAKARTA

2016 ◽  
Vol 28 (2) ◽  
pp. 263
Author(s):  
H. Rhiti ◽  
Y. Sri Pudyatmoko
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Environmental Problems ◽  
Government Policies ◽  
Economic Interests ◽  
Building Permit

AbstractIn DIY the environmental permit is recognized as an istrument for preventing the environmental problems. Local Government policies related to environmental permits are: the harmonization of economic interests with local wisdom and the environment; the interconnection between environmental permits and spatialplanning; the environmental permit as a requirement for the nuisance permit and building permit; the application of SPPL (statement letter to manage the environment) for small lactivities. According to local governments, the policies are appropriate to protect the environment.IntisariDi DIY perizinan lingkungan diakui sebagai instrumen untuk mencegah timbulnya masalah lingkungan hidup. Kebijakan Pemerintah Daerah terkait perizinan lingkungan dilakukan dengan: harmonisasi kepentingan ekonomi, muatan lokal dan lingkungan; mengaitkan perizinan lingkungan dan RTRW; menjadikan Izin Lingkungan sebagai syarat bagi Izin Gangguan dan IMB; dan penerapan SPPL bagi kegiatan mikro dan kecil. Kebijakan-kebijakan tesebut dianggap oleh Pemerintah Daerah sebagai cukup tepat bagi pelestarian fungsi lingkungan hidup di daerah.

scholarly journals Adapting Public Sector Services to Local Delivery

2012 ◽  
Vol 17 (Special Edition) ◽  
pp. 359-385 ◽  
Author(s):  
Ishrat Husain
Keyword(s):  
Local Government ◽  
Service Delivery ◽  
Public Service ◽  
Local Governments ◽  
Business Processes ◽  
Civil Service ◽  
Fiscal Decentralization ◽  
Education And Health ◽  
Number Of Factors ◽  
Management Policies

This article describes the local government system established in the 2001 Devolution Plan and its evolution over the period 2002-07, with a focus on two essential public services, education and health. We believe that the devolution of service delivery functions, delegation of financial powers, decentralization of authority, and deconcentration of executive powers, can, together, lead to better accountability of results and, hence, to improved public service delivery to the poor and marginalized. The Devolution Plan made inroads toward these goals, particularly in education, but their achievement was incomplete due to a number of factors, among those incomplete fiscal decentralization, limited targeting of backward areas, and centralizing tendencies of the provincial departments and civil service. Recommendations are offered on how to further develop the local government system more generally, with an eye towards increasing accountability and improving coordination both across local governments and between tiers. For this, complementary reforms to simplify business processes and revamp human resource management policies are needed; introducing a district level civil service is among the suggested changes. The article concludes with detailed recommendations on improving the decentralized delivery of education and health services.

scholarly journals FEATURES OF INTERGOVERNMENTAL RELATIONS IN THE CONTEXT OF ACHIEVING FINANCIAL VIABILITY OF LOCAL COMMUNITIES

2017 ◽  
pp. 17-28
Author(s):  
Halyna VOZNIAK
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Intergovernmental Relations ◽  
Fiscal Decentralization ◽  
Local Communities ◽  
Voluntary Association ◽  
Financial Viability ◽  
Financial Capacity ◽  
Human Resource Capacity ◽  
Budgetary Decisions

Introduction. In the conditions of the implementation of the government’s decentralization reform, local communities received the real opportunities for increasing the resources which can be used for development. One of the conditions, which provides their economic development, is to create an effective system of intergovernmental relations, aimed to optimizing fiscal decentralization and clear definition of the powers of local government. The increasing interest to the problem of expanding of local communities financial capacity caused by the necessity to find improved mechanisms for incomes separation between the elements of the budget system and types of budgets. Purpose. The purpose of this article is to study of intergovernmental relations in the context of achieving financial viability of local communities and to summarize the preliminary results of the reform. Results. The features of intergovernmental relations in local government reform in Ukraine are highlighted. The fiscal innovations, which extends the autonomy principles of local budgets, reallocates expenditure responsibilities between levels of government and creates conditions for intensification of the process of voluntary association of municipalities, have been analyzed. The first phase of fiscal decentralization in Ukraine has been estimated. It has been shown that despite the strengthening of the solvency of local budgets, the negative trends is intensified: excessive centralization of budgetary decisions; imperfect distribution of functional responsibilities and rights between the central and local governments; low human resource capacity of the community; low financial autonomy of local government and so on. The risks of the further deepening the fiscal decentralization have been justified. Conclusions. It was suggested the directions for increasing financial capacity of local communities in the introduction of industry standards of public services, which should increase the efficiency of planning and using of public funds at all levels; in the improving the basic and reverse subsidies calculations and in the estimation the risks of the fiscal decentralization.

scholarly journals The Effect of Fiscal Decentralization on the Accountability of City / District Government Financial Reporting in Indonesia and the Regional Government's Financial Performance as a Moderation Variable

2020 ◽  
Vol 5 (7) ◽  
pp. 370-376
Author(s):  
Wahida Nurmuthmainnah ◽  
Syarifuddin . ◽  
Mediaty .
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Financial Reporting ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Financial Statements ◽  
Series Data ◽  
Financial Reports ◽  
Regional Governments

This study aims to provide an overview of the effects of fiscal decentralization in proxies with regional independence and regional dependence on the central government regarding accountability of regional financial reporting and financial performance of Local Governments as moderating variables. The type of data used in this study is secondary data, panel data in the form of time series data from 2015 to 2017 and cross section data from 509 districts / cities in Indonesia. The sample selection in this study was purposive sampling by creating a cluster of western, central and eastern regions, so that 135 samples were obtained. The results showed that: (1) Regional independence had a positive effect on the accountability of local government financial reports. (2) Regional Dependence has a negative effect on the Accountability of Regional Government Financial Statements. (3) The financial performance of regional governments can moderate the influence of regional independence on the accountability of local government financial reports. (4) The financial performance of regional governments can moderate the effect of regional dependence on the accountability of local government financial statements.

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