scholarly journals The Legacy of the Reformasi: The Role of Local Government Spending on Industrial Development in a Decentralized Indonesia

2021 ◽  
Author(s):  
Bangkit A. Wiryawan ◽  
Christian Otchia
Keyword(s):  
Industrial Development ◽  
Oil And Gas ◽  
Central Government ◽  
Capital Expenditure ◽  
Local Level ◽  
Industrial Growth ◽  
Moderation Effect ◽  
Long Run ◽  
Capital Spending ◽  
The Government

Abstract Starting in 2001 the government of Indonesia employed Regional Autonomy law, providing larger fiscal role to the province and district governments. However, our understanding of its impacts on economic development of Indonesia is still limited. This paper seeks to find the relationship between increasing local government’s capital expenditure on industrial development with focus in the non-oil and gas sector. Capital spending is thought to have moderation effect on investment, the main channel for industrialization, that should contribute to industrial growth. Our System GMM result suggests that there is significant correlation between capital spending and industrial growth. However, we fail to find significance moderation effect between local spending and investment towards the industry. Decentralization progress in Indonesia has been institutionally anchored by the central government particularly with the introduction of concurrent affairs in 2004, allowing central government to take a major developmental role at the local level. In the long run this contributes to the weakening capacity building at the local level, resulting in our non-positive findings. We propose a new institutional model that promote better central-local collaboration.

PENGARUH DANA ALOKASI KHUSUS (DAK) DAN PENDAPATAN ASLI DAERAH (PAD) TERHADAP BELANJA MODAL PADA PEMERINTAH KABUPATEN NAGAN RAYA TAHUN 2009-2013

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Surna Lastri
Keyword(s):  
Central Government ◽  
Capital Expenditure ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Test Results ◽  
Positive Direction ◽  
Local Revenue ◽  
Capital Spending ◽  
The Government

This research was conducted at the Government Nagan Raya years 2009-2013 in order to test the effect of Special Allocation Funds and local revenues for capital expenditures. This study uses data obtained based on the financial statements of the Government of Nagan highway. Testing technique used is multiple linear regression analysis using the program Statistical Product and Service Solutions (SPSS) version 18. The test results showed that capital spending simultaneously influenced by the Special allocation funds and revenue. Special allocation of funds partially affect capital spending by demonstrating the positive direction, the higher allocation of Special Allocation Funds from the central government, the greater the capital expenditure spent. Similarly, the results of testing on revenue partially affecting the capital expenditure with the positive direction, the greater the local revenues realized Nagan Raya District Government, the greater the capital expenditure spent by the regional government.Keywords: Special Allocation Fund, Local Revenue and Capital Expenditure

Private Enterprise Development in a One-Party Autocratic State: The Case of Alibaba Group in China’s E-Commerce

2018 ◽  
Vol 54 (01) ◽  
pp. 1850001
Author(s):  
FU LAI TONY YU
Keyword(s):  
Financial Stability ◽  
Industrial Development ◽  
Private Enterprise ◽  
Strong Support ◽  
Chinese Government ◽  
Industrial Growth ◽  
Party Members ◽  
Private Entrepreneurs ◽  
The Government ◽  
The One

This study attempts to explain China’s industrial development with special reference to e-commerce. It argues that in a one-party autocratic regime such as China, the collaboration between government officials and private entrepreneurs in strategic industries can promote industrial growth. Since Internet can jeopardize communist party’s goal of maintaining cohesiveness and absolute political power, the Chinese government has imposed surveillance on private operation in all IT operations. Specifically, in e-commerce industry, through collaborations with private enterprises, the communist party can “kill two birds in one arrow.” On the one hand, party members are able to preserve national security and maintain social and financial stability by closely monitoring the private enterprise operation. Moreover, party members can seize tangible and non-tangible benefits from the growth in e-commerce firms. On the other hand, private e-commerce enterprises, by building close connection with public officials and senior party members, can obtain strong support from the government, and thus boosting its business growth. This argument is applied to explain the miraculous growth of Alibaba Group, a private e-commerce enterprise in China. In particular, the paper attempts to show the relationship between the Chinese government and the private entrepreneur in the e-business development and how their collaboration enhances growth in the Internet market.

scholarly journals ANALISIS EFEKTIVITAS REALISASI ANGGARAN BELANJA MODAL DINAS PERDAGANGAN DAN PERINDUSTRIAN KABUPATEN MUSI BANYUASIN

2019 ◽  
Vol 2 (2) ◽  
pp. 76
Author(s):  
Rano Asoka
Keyword(s):  
Data Analysis ◽  
Data Collection ◽  
Capital Expenditure ◽  
Descriptive Analysis ◽  
Interview Research ◽  
Positive Growth ◽  
Capital Spending ◽  
Library Studies ◽  
Qualitative Descriptive ◽  
The Government

This research aims to determine the effectiveness of the realization of capital expenditure budget in the Trade and Industry Board of Musi Banyuasin. It has been reached the goal budget target in the government of Musi Banyuasin Regency. The methods of research used are qualitative methods. The data collection techniques used are interview research, documentation, and library studies. Data analysis was conducted using qualitative descriptive analysis methods and the use of capital expenditure budget data and the realization of capital spending in 2016 to 2018. The results showed that The Trade and Industry Board of Musi Banyuasin Regency in realization of the capital expenditure budget in the year 2016 to 2018 can be said to be effective and in positive growth. In 2016 to the year of 2018, The Trade and Industry Board of Musi Banyuasin Regency is still dependent on local government so that the implementation decentralization of capital expenditure budget can be said to be effective.

Capital Budgeting and Public Investment Projects in Ukraine

2019 ◽  
pp. 93-112
Author(s):  
Olha Krupa
Keyword(s):  
Capital Investment ◽  
Capital Expenditure ◽  
Public Capital ◽  
Capital Budgeting ◽  
Budget Process ◽  
Capital Investments ◽  
Public Projects ◽  
Capital Spending ◽  
The Government ◽  
And Performance

This chapter discusses the budget process for public capital investments in Ukraine, presents controversies in the current process, and offers several avenues for improvement. In doing so, the author provides a description of the country's normative capital public budgeting framework, presents the institutional setup, and tracks Ukraine's public capital expenditure trends for nearly three decades (1991-2016). The study then discusses implementation, audit, and performance issues in Ukraine's public capital expenditure management and provides recommendations. Because of the country's limited fiscal capacity as compared to its massive infrastructure needs, the author posits that Ukraine can no longer afford to delay or ignore its most pressing public capital investment needs. Because the current list of capital investment proposals is underfunded and too long, the author suggests that the government focuses on finishing strategic, high-priority public projects, while other capital spending proposals target private sector financing once it becomes more readily available.

scholarly journals Agro-industrialisation and financial intermediation in Nigeria

2020 ◽  
Vol 11 (3) ◽  
pp. 443-456 ◽  
Author(s):  
Ngozi Adeleye ◽  
Evans Osabuohien ◽  
Simplice Asongu
Keyword(s):  
Agricultural Sector ◽  
Explanatory Power ◽  
Value Added ◽  
Annual Data ◽  
Industrial Output ◽  
Industrial Growth ◽  
Content Type ◽  
Long Run ◽  
The Government

PurposeThe study aims to analyse the role of finance in the agro-industrialisation nexus in Nigeria using annual data on manufacturing value added, agricultural value added and volume of finance availed to the agricultural sector from 1981 to 2015.Design/methodology/approachTo establish the presence of a long-run relationship, the error correction model and bounds cointegration techniques are employed. Likewise, the model is augmented to test whether the associated relationship between industrial output and agricultural output depends on access to finance by farmers with the inclusion of an interaction term.FindingsSome salient contributions to the literature are as follows: agriculture and finance are strong and positive predictors of industrialisation in the long run; in the short run, past realisations of industrial output and finance have significant asymmetric effects on industrial output; the explanatory power of agriculture decreases with the growth of the financial system; and the long-run results validate the role of finance in the agro-industrialisation nexus.Originality/valueGiven these findings, achieving growth in the agricultural sector that will induce desired industrialisation should be prioritised by the government through agencies such as the central bank, financial intermediaries and other stakeholders with a view to making agricultural financing a major concern for sustainable domestic consumption and industrial growth.

scholarly journals Selective industrial policies in China: investigating the choice of pillar industries

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elisa Barbieri ◽  
Marco Rodolfo Di Tommaso ◽  
Mattia Tassinari ◽  
Marco Marozzi
Keyword(s):  
Industrial Development ◽  
Design Methodology ◽  
Chinese Economy ◽  
Chinese Government ◽  
International Literature ◽  
Industrial Growth ◽  
Content Type ◽  
Industrial Policies ◽  
Analysis Methodology ◽  
The Government

Purpose China’s experience of industrial growth is noteworthy for several reasons, not least because it has made a massive use of selective industrial policies. The industrial development guidelines set by the Five-Year Plans are extensively based on the choice of “strategic” or “pillar” industries to be promoted and supported. What remains unclear is the way in which such industries are identified among many. The purpose of this paper is to propose a debate on how to improve the government choice of strategic sectors and suggests a methodology to make this choice more transparent and rigorous. Design/methodology/approach The methodology allows ranking the different industries according to their strategic importance in the Chinese economy. The authors employ an uncertainty analysis methodology to verify the robustness of the ranking. Findings The results point to a list of strategic sectors for China. Comparing the ranking of the strategic sectors to the list of strategic priorities described in the Twelfth Five-Year Plan, we find that, by and large, the ranking coincides with the list of strategic sectors of the Chinese government. Social implications The authors argue that improving the transparency and the rigor of the choice of pillar industries can be crucial for the Chinese government to maintain social legitimization in the transition to a “market” economy. Originality/value Very little is known about the choice of strategic sectors in China in the international literature. By addressing the debate on the choice of pillar industries in China, the paper discusses a topic scarcely studied offering a unique and original contribute.

Indonesian energy reform eyes public-private balance

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Local Level ◽  
National Level ◽  
Content Type ◽  
Resource Endowment ◽  
Gas Market ◽  
The Government ◽  
Private Investors ◽  
Energy Assets ◽  
Oil And Gas Sector

Subject Proposed reforms in the oil and gas sector. Significance In the face of strong resource nationalism, President Joko 'Jokowi' Widodo's government faces strong pressure to improve the balance between public control and private participation in the oil and gas sector. To that end, the government proposes to amend the 2001 oil and gas law. Its draft amendment proposes, most notably, that state enterprises should control all production operations, while private investors provide technology and capital. The government is also considering revisions to the upstream regime, which is currently based on production-sharing contracts (PSCs). These changes require parliamentary approval. Impacts Private firms, especially foreign ones, are likely to delay fresh investment in energy assets, given the oil and gas market glut. Indonesia's vast natural resource endowment will attract private interest, but regulatory uncertainty will be an abiding problem. Transparency in the extractive sector will continue to rise at the national level, but local level reforms will be slow.

The long run industrial growth of Veracruz state, 1955-2008

2014 ◽  
Vol 41 (6) ◽  
pp. 821-832
Author(s):  
Gregory J. Brock
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Local Level ◽  
Regional Growth ◽  
Efficiency Index ◽  
Industrial Growth ◽  
Content Type ◽  
Long Run ◽  
Mexican State ◽  
Industrial Labor

Purpose – Has the Mexican inter-regional growth and convergence experience also occurred within single regions? Using the important southern region of Veracruz, the purpose of this paper is to examine this question over a 48-year period within a single Mexican state. Design/methodology/approach – Growth is examined using a standard two input stochastic production function (SPF) that creates a measure of technical efficiency. Convergence is measured using a convergence equation from the literature but which also included the results from the SPF analysis to incorporate not only initial levels of inputs but also the ability of a municipio to utilize these inputs. Data collection in Mexico and online included a long run database of 149 municipios in Veracruz from 1960 thru 2008. Findings – A stochastic Cobb-Douglas technology is found to fit the long run growth of Veracruz province well. In the 1960s, 2000s and the long run (1960-2008), weak evidence for the municipios in Veracruz appear to be converging with a relatively higher level of technical efficiency resulting in slower growth of industrial labor productivity is found. Some very recent improvement in technical efficiency may be the result of institutional as well as economic reforms finally allowing an exiting of inefficient firms that has kept the levels of municipio industrial technical efficiency stagnant for decades at about 70 percent. Research limitations/implications – Data were limited to 149 municipios because of the need to track long run trends. Data were also limited by the need to use what was available in 1960 in a direct comparison with 2008. The design of the study was to use the technical efficiency index as a proxy for much of the missing data on institutions in the historic period. Panel data were used because the economic census is not done every year plus the turmoil in the Mexican economy in the 1980s thru the end of the 1990s make imputation of missing years at the local level quite difficult. Practical implications – The paper provides a baseline to analyze the long run intra-regional economic growth of other Mexican states which have a large number of municipios. It begins the exciting possibility of looking at Mexican long run growth from the municipio level which has historically played an important role in Mexico. Originality/value – This is the first study to examine long run growth within a Mexican state at the municipio level using both the production function and convergence literature. Results suggest several avenues for further research inside Veracruz and across Mexico.

The Implications of the Comprehensive Spending Review for the Long-Run Growth Rate: a View From the Literature

2000 ◽  
Vol 171 ◽  
pp. 94-105 ◽  
Author(s):  
Richard Kneller
Keyword(s):  
Growth Rate ◽  
Quantitative Assessment ◽  
Growth Potential ◽  
Empirical Literature ◽  
Long Run ◽  
Capital Spending ◽  
The Government ◽  
Upside Risk ◽  
Empirical Growth ◽  
Trend Growth

In 1998 the Government set out its expenditure plans for the remainder of the current Parliament in the Comprehensive Spending Review. Announced within this were large increases in expenditure on education, health and capital spending with the objective of meeting the Government‘s manifesto pledges. Yet as the recent report by the Treasury on the UK's trend rate of growth states, the expenditure plans of the CSR may also help to raise the growth potential of the economy, although no quantitative assessment of this was made. Using evidence from the empirical growth literature, this article examines the possible effects of these policies on the long-run growth rate of the economy. In general the results from the empirical literature are non-robust, but by conducting a very different style of review we are able to identify several studies from which to determine what these effects might be. Using a stylised version of the CSR we estimate that it may raise the long-run growth rate by as much as 0.1 of a percentage point per annum, although there is some sensitivity to the underlying assumptions. This appears to confirm the likelihood of modest upside risk to the Treasury's estimate of trend growth.

scholarly journals Marketing instruments for attracting investments in territorial communities

2020 ◽  
Author(s):  
O. Fedorchak ◽  
H. Ishchenko
Keyword(s):  
Central Government ◽  
Local Level ◽  
Investment Strategy ◽  
Local Communities ◽  
Main Body ◽  
Investment Climate ◽  
Local Authorities ◽  
Investment Activity ◽  
Starting Point ◽  
The Government

Problem setting. Ukraine has significant regional imbalances in attracting investment. The most attractive for investors is Kyiv city, where almost 50% of foreign investments are accumulated. At the same time, other regions remain unattractive for investors. The unsatisfactory situation in the regions is a reflection of unfavorable investment climate and requires the use of new tools to attract investment. The use of marketing tools can stimulate the inflow of investment into small cities and communities. Given these, the issue of using marketing tools to attract investment in local communities remains unexplored and relevant.Recent research and publications analysis. An important contribution to the study of territory marketing and investment attraction was made by: S. Ankholt, V. Bondarenko, D. Vizghalov, M. Hovorukhina, N. Hrynchuk, K. Dinni, O. Ignatenko, F. Kotler, O. Osovets, A. Pankrukhin, S. Smerichevskyi, R. Fedorov, O. Fedorovych, D. Frolov, O. Khymych, and others.Highlighting previously unsettled parts of the general problem. An analysis of the literature on this issue has shown that domestic researches are quite narrowly specialized and most English-language works on this topic are written in the form of study of real situations and have non-scientific characters.The purpose of the article is to reveal the essence of marketing tools and justify the feasibility of their use to attract investment in local communities, and improve the investment climate in Ukraine.Paper main body. In recent years, Ukraine has taken significant steps to decentralize its power and resources. And although decentralization is a complicated reform, it is also one of the most successful reforms in Ukraine. This reform provides the transfer of powers and finances for their implementation from the central government to local authorities. The starting point of the reform is the thesis that local authorities are better oriented at local problems and can use funds more effectively to solve them.However, in the context of the economic crisis caused by the spread of the COVID-19 pandemic, the government is cutting transfers to support infrastructure and urban development in general. The local authorities in Ukraine suffer from an austerity policy pursued by the government. With this in mind, communities need to work to create a positive image of the area, to diversify sources of capital, and attract new investors.Taking into account the limited budgets and the specifics of activities at the local level, the minimum set of tools for attracting investment in local communities should include: development of investment strategy and program, brand formation of the territory, development of investment passport, formation of industry reviews, construction of investor’s roadmap, distribution of investment proposals, creation and updating of investment website, work in social networks, development of interactive investment map, press kit formation, preparation of multimedia presentations, participation in road-shows, investment seminars, conferences, forums and exhibitions, targeted search for new investors and formation of existing investors database.Conclusions of the research and prospects for further studies. The results of the study confirm that in the conditions of competition for investment funds, marketing tools for attracting investments come to the fore. Although the marketing of territories is a relatively young area of research, it can contribute to the successful promotion of local communities to attract investment and improve the image of the territory. The skillful use of marketing tools can help attract investment to local communities.In further research, we plan to study tax instruments to stimulate investment activity to improve the investment climate in Ukraine.

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