Asymmetric decentralisation, economic cycle, regional and local government’s borrowing in Spain

2014 ◽  
Vol 64 (4) ◽  
pp. 441-461 ◽  
Author(s):  
Fernando Toboso
Keyword(s):  
Economic Growth ◽  
Public Policy ◽  
Local Governments ◽  
Central Government ◽  
Institutional Arrangements ◽  
Economic Cycle ◽  
The World ◽  
Fiscal Decentralisation ◽  
The Impact ◽  
Intense Process

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.

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
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Public Sector ◽  
Cross Section ◽  
Central Government ◽  
Empirical Test ◽  
Negative Relationship ◽  
The Public ◽  
Fiscal Decentralisation ◽  
The Impact

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.

scholarly journals The response of local governments in financing related to the COVID-19 pandemic: A literature review

2021 ◽  
Author(s):  
Vetty Yulianty Permanasari ◽  
Mardiati Nadjib ◽  
Amal Chalik Sjaaf ◽  
Besral Besral ◽  
Adinda Aulia Anjani
Keyword(s):  
Literature Review ◽  
Local Governments ◽  
Central Government ◽  
Cochrane Library ◽  
Exclusion Criteria ◽  
Effective Response ◽  
The World ◽  
Fiscal Transfer ◽  
The Right ◽  
The Impact

Not only the Central Government, local governments also have a role to shape, adapt and provide a holistic response to the COVID-19 pandemic. One of the most important actions taken by local governments during the COVID-19 pandemic is to make immediate, timely, and targeted decisions for the right institutions in order to give an effective response. Regarding financing, the main point is to focus on increasing support and accelerating fiscal transfer funds to local governments in an effort handle COVID-19. This paper wants to observe the empirical practice of local governments in various countries in responding to the COVID-19 pandemic, especially in terms of financing various programs and activities related to the COVID-19 response. Literature was obtained from several databases, namely PubMed, ScienceDirect, Cochrane Library and Google Scholar. Of the 783 articles obtained at the start of the search, in the end only 11 articles met the inclusion and exclusion criteria of this study. The impact of the COVID-19 pandemic is aparrent in all parts of the world, including in countries’ local governments, that forced them to carry out various efforts of mitigating the severity of the pandemic. Although the detailes of local governments budgeting were not found in most of the articles studied in this literature review, it is sufficient to provide a fairly significant picture of the function of local government in tackling the spread of COVID-19.

Asymmetrical Attribution of Performance in China

Asian Survey ◽  
2020 ◽  
Vol 60 (5) ◽  
pp. 978-1003
Author(s):  
Jacqueline Chen Chen ◽  
Jun Xiang
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
Central Government ◽  
Cultural Theory ◽  
Political Trust ◽  
Mediation Model ◽  
Multilevel Mediation ◽  
Dual Pathway ◽  
Underlying Mechanisms ◽  
The Impact

Existing studies of the impact of economic development on political trust in China have two major gaps: they fail to explain how economic development contributes to the hierarchical trust pattern, and they do not pay enough attention to the underlying mechanisms. In light of cultural theory and political control theory, we propose adapting performance theory into a theory of “asymmetrical attribution of performance” to better illuminate the case of China. This adapted theory leads to dual pathway theses: expectation fulfillment and local blaming. Using a multilevel mediation model, we show that expectation fulfillment mainly upholds trust in the central government, whereas local blaming undermines trust in local governments. We also uncover a rural–urban distinction in the dual pathway, revealing that both theses are more salient among rural Chinese.

Transfer-based decentralisation, economic growth and spatial inequality: Evidence from China’s 2002–2003 tax sharing reform

Urban Studies ◽  
2019 ◽  
Vol 57 (4) ◽  
pp. 806-826
Author(s):  
Fan Fan ◽  
Ming Li ◽  
Ran Tao ◽  
Dali Yang
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Central Government ◽  
Value Added ◽  
Spatial Inequality ◽  
Variable Approach ◽  
Interregional Inequality ◽  
Urban Rural ◽  
Per Capita ◽  
Tax Sharing

China has adopted a transfer-based fiscal decentralisation scheme since the mid-1990s. In the 1994 tax sharing reform, the central government significantly raised its share of government revenue vis-à-vis local governments by taking most of the newly created value-added tax on manufacturing. One aim for the adoption of the transfer-based fiscal scheme was to channel more funds to less developed regions and rural areas, and to alleviate growing interregional inequality and urban–rural income disparity. In 2002 and 2003 the Chinese central government further grabbed 50% and 60%, respectively, of the income taxes previously assigned only to local governments while providing more fiscal transfers to the country’s poor regions and the countryside. Utilising the 2002–2003 change in China’s central–local tax sharing regime as an exogenous policy shock, we employ a Simulated Instrumental Variable approach to causally evaluate the effects of the policy shock on growth, interregional inequality and urban–rural disparity. We find the lower local tax share dis-incentivised local governments and led to lower growth. Although higher central transfers helped to reduce interregional inequalities in per capita GDP and per capita income, the equalising effects were only present for urban incomes. We argue that transfer-based decentralisation without bottom-up accountability was detrimental to economic growth and had limited impact on income redistribution.

Understanding the impact of mandatory accrual accounting on management practices: interpretation of Japanese local governments’ behavior

2021 ◽  
pp. 002085232198895
Author(s):  
Makoto Kuroki ◽  
Keiko Ishikawa ◽  
Kiyoshi Yamamoto
Keyword(s):  
Internal Control ◽  
Local Governments ◽  
Public Management ◽  
Management Practices ◽  
New Public Management ◽  
Central Government ◽  
Institutional Pressures ◽  
Accrual Accounting ◽  
Logistic Analysis ◽  
The Impact

Accompanying the spread of “new public management” since the 1980s, accrual accounting and results-based management has become a global standard. However, whether accrual accounting results in successful outcomes and which drivers lead to the intended impacts of the reform have been contested. Given the mixed arguments in the literature, we set out two research questions: (1) “Have public sector organizations realized any positive impacts on management practices by adopting mandatory accrual accounting?”; and (2) “What are the primary drivers of such impacts?” To answer these questions, we examine the impact on management practices by analyzing a survey to ascertain how financial department officers in Japanese local governments perceive the benefits of adopting mandatory accrual accounting on management practices. The results indicate that they have so far not recognized the intended benefits, though they had expected higher benefits in internal control. Then, we use technical-rational, socio-political, and institutional isomorphic perspectives in a comprehensive approach to understand the impacts on management practices. The logistic analysis shows that financial managers in local governments that do not have a majority party in the assembly, but consist of several parties in power, as well as in those with greater financial dependence on the central government, perceive higher benefits. Further, we find that financial managers that imitate other local governments as a form of mimetic pressure perceive fewer benefits. The results show that some technical-rational tools, socio-political conditions, and institutional pressures change the perceived benefits for public managers of adopting mandatory accrual accounting. Points for practitioners We find that some technical-rational, socio-political, and institutional factors explain the intended internal benefits of the mandatory adoption of accrual accounting. In practice, financial managers in local government feel the merits of accrual accounting in less autonomy in not only politics, but also finance, and few mimetic conditions. It might be understood that difficult situations would drive practitioners to use mandatory information.

scholarly journals Impact of foreign direct investment on economic growth in the world during 1975–2015

2018 ◽  
Vol 20 (91) ◽  
pp. 28-32
Author(s):  
B. B. Brychka
Keyword(s):  
Economic Growth ◽  
Literature Review ◽  
Regression Models ◽  
Trade Openness ◽  
Positive Influence ◽  
Linear Regression Models ◽  
Average Value ◽  
Gdp Growth Rate ◽  
The World ◽  
The Impact

The study is concentrated on examination the impact of FDI on economic growth in the World during 1975–2015. The study consists of four consecutive parts, including introduction, literature review, model and methodology, data, empirical results and conclusion. Each part of the study is focused on its own goals. According to the results of the literature review, there is positive influence of FDI on economic growth in various countries. Economic growth is one of the most important goals of any country. The country image on the international level is dependent on its economic power. Economic growth provides an opportunity to improve the living standards in the country. Most researchers conclude that there is a positive influence of FDI on the countries’ economic growth. However, the impact of FDI is strong in developing countries. Moreover, this relationship is stronger in countries with higher educational and technological level, trade openness and development of the countries’ stock markets. Economists often build regression models to estimate the relationship between the variables. In order to find the impact of FDI on economic growth, we are going to apply linear regression models. We take two variables as indicators of the countries’ economic growth, including current GDP expressed in U.S dollars, and annual GDP growth rate. Taking into account that the World’s GDP in current U.S dollar is a factor variable with the mentioned resulting variables, the regression equation looks as follows: The R-squared of the built model is 0.99, indicating that roughly 100% of changes in the World’s GDP is caused by the chosen factors. As it is seen from the SAS output, the residuals of dependent variable and factors variables are distributed normally among its average value. Thus, non-normality is not observed in the model. Taking into account the coefficients of the factor variables, the log GDP is most sensitive to the changes in trade as a percent of GDP. The log GDP is not quite sensitive to the changes in FDI, since the coefficient of 0.000128 means that increasing of FDI by one unit increase the logarithmic value of GDP by $ 0.000128.

Analisis Retribusi dan Pengaruhnya Terhadap Kemandirian Pembangunan Daerah

2021 ◽  
Vol 21 (02) ◽  
Author(s):  
Dadang Sudirno ◽  
Hani Sri Mulyani2
Keyword(s):  
Economic Growth ◽  
Regional Development ◽  
Local Governments ◽  
Central Government ◽  
Descriptive Analysis ◽  
Linear Regression Analysis ◽  
Sample Selection ◽  
Local Taxes ◽  
Directorate General ◽  
Financial Balance

Independence of Regional Development in regional autonomy is the ability of local governments to self-finance government activities, development, services to the community and manage regional finances, especially Regional Original Income (PAD) and Economic Growth Levels without relying mostly on assistance from the central government. This study aims to determine the effect of local taxes, levies and the level of economic growth on the independence of regional development in CIAYUMAJAKUNING regencies / cities for the 2011-2018 period, either partially or simultaneously. The variables used in this study are Local Taxes, Retribution, Economic Growth Rate and Regional Development Independent Ratio obtained from the website of the Directorate General of Financial Balance (DJPK) and the website of the Regency / City Central Statistics Agency (BPS) in West Java. The analytical method used is descriptive analysis method and verification. The sample selection in this study used the saturated sample method, and the samples from this study were 5 districts / cities, namely Cirebon City, Cirebon Regency, Majalengka Regency, Indramayu Regency and Kuningan Regency in the 2011-2018 period so that 40 sample data were obtained. The analytical tool used in this research is simple linear regression analysis. The results of this study indicate that Retribution has a significant effect on the Independence of Regional Development.

Constructing the Knowledge Society

2014 ◽  
pp. 253-266
Author(s):  
Li Wengang ◽  
Chen Yulai ◽  
Guo Jia
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Knowledge Society ◽  
African Countries ◽  
The Past ◽  
The World ◽  
National Congress ◽  
Fresh Impetus ◽  
Reform And Opening Up ◽  
Opening Up

Since the Reform and Opening up in the late 1970s, China has been seeking an innovation-driven knowledge society. In the past decade, the central government and local governments took effective measures to quicken China's steps towards a knowledge society. In the recent 18th National Congress of the CPC, reform and innovation was highly emphasized to give fresh impetus to knowledge society building. Within the context of increasing globalization and Africa-China long-lasting friendship and cooperation, China and African countries can learn from each other in knowledge society construction. As the second largest economy in the world, China is playing an increasing role in knowledge society construction in Africa. Can Africa learn from China's experiences? This chapter provides some answers to this query.

scholarly journals The Impact of Social Accountability Mechanisms on Fiscal Management Challenges Facing Goromonzi Rural District Council, Zimbabwe

2020 ◽  
Vol 10 (2) ◽  
pp. 141
Author(s):  
Trust Madhovi
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Central Government ◽  
Monitoring And Evaluation ◽  
Social Accountability ◽  
Rural District ◽  
Government Officials ◽  
Fiscal Management ◽  
District Council ◽  
The Impact

This paper examines the impact of social accountability mechanisms on the fiscal management challenges facing local government bodies in Zimbabwe. The paper hypothesises that there is a positive relationship between the use of social accountability mechanisms or tools by local authorities and the effectiveness of their fiscal management policies to mobilize more revenue for service delivery. In this study, both quantitative and qualitative methods are adopted in gathering and analysing data from central government officials, Goromonzi Rural District Council employees and members of the public. The results of the study reveal that the local government body faces a number of fiscal management challenges that include a shrinking tax base, non-payment of taxes, resistance to successive budgets; lack of implementation; lack of monitoring and evaluation. Council has implemented participatory budgeting to deal with some of these challenges. While results show a significant improvement in tax collection, some of the challenges have persisted. The paper proposes some recommendations useful to central government, policy makers, civil society organisations, local government officials and the general public. The paper manages to demonstrate that the implementation of social accountability tools can have positive impacts on the fiscal management challenges facing local governments. 

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