scholarly journals The Effects of Fiscal Decentralization on General and Local Government Size: Does Composite Index Matter?

2021 ◽  
pp. 5-23
Author(s):  
Ebru CANIKALP ◽  
Taner TURAN ◽  
İlter ÜNLÜKAPLAN
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Positive Relationship ◽  
Fiscal Decentralization ◽  
Composite Index ◽  
Government Size ◽  
Flypaper Effect ◽  
General Government ◽  
Using Data ◽  
The Impact

This article examines the impact of fiscal decentralization on the size of both general and local government using data for 36 countries over the period 1972–2019 and GMM. Our results consistently suggest that fiscal decentralization does not exert a significant impact on general government size. On the other hand, there exists a positive relationship between fiscal decentralization and local government size. We should note that our baseline regression results don’t significantly change when we use different fiscal decentralization indexes. Therefore, we don’t find any evidence for the argument that fiscal decentralization would be helpful to restrict the expansion of government size. Moreover, we present some evidence for the flypaper effect. Additionally, we find a positive relationship between the fiscal importance and local governments, interpreted as an indicator of expenditure competition instead of race to bottom.

Local government modernization in Albania

2018 ◽  
Vol 31 (4) ◽  
pp. 466-506 ◽  
Author(s):  
Elona Guga
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Historical Development ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Single Case ◽  
Administrative Reform ◽  
Current Debate ◽  
Content Type ◽  
The Impact

Purpose An attempt will be made to shed light on the course and pattern of the decentralization process by analyzing the historical development of local government and the territorial-administrative reform of 2015-2020 in Albania and the factors that have been shaping it. The scope is to understand the impact of the reform elements on the subnational governments and in general their overall impact on the government. The purpose of this paper is to fill the gap in the existing literature for Albania and at offering some insights on the administrative-territorial reform. Furthermore, it will contribute to the current debate on fiscal decentralization in South Eastern European (SEE) countries and the public management model implemented after the last reforms. Design/methodology/approach The first section analyzes the historical development of local government reforms from the 1990s to today and will help to identify if there is instrumentalism advocacy. The second section explains the determinants of the local government’s fiscal autonomy in Albania of the period from 2003 to 2016. Three indicators are used as proxies for fiscal decentralization: the proportion of subnational expenditure over national expenditure, of total subnational revenues over total revenues of central government and the indicator of own subnational revenues over total revenues of the central government. The data from the budget and the revised budgets are then compared. Findings Despite Albania’s commitment to decentralize its government functions, there is still work to do. The territorial and administrative reform has not generated the expected results. Almost 90 percent of the revenues still come from the central government’s unconditional transfers. Therefore, the Albanian Government should build capacities and skills, and train the employees of each level of government that currently benefit from international assistance. Research limitations/implications The analysis represents a single case study on the territorial-administrative reform in Albania. Its implementation started in 2015 and it is probably too early to discuss outcomes. However, it might be useful to analyze the first results after a two-and-a-half-year period of implementation of reforms. Despite contributing to the existing gap in the literature, additional research will be necessary to better understand the decentralization process not only in Albania, but in all SEE countries. Practical implications It is necessary to first understand the lack of initial output, as well as the various challenges faced, in order to take the corrective measures on time. Originality/value This paper discusses in detail the reform adopted and the progress made by the Albanian local government units. The reform attempts to develop better relationships between the central and local governments and hence improve their service delivery, transparency and accountability. This paper is the first one that is attempting to analyze the initial output of the territorial-administrative reform of 2015-2020.

scholarly journals Pengaruh Transfer Pemerintah Pusat terhadap Perilaku Fiskal Pemerintah Daerah di Provinsi Kalimantan Timur

2011 ◽  
Vol 12 (1) ◽  
pp. 56-71
Author(s):  
Erny Murniasih ◽  
M. Syarif Mulyadi
Keyword(s):  
Local Government ◽  
Fiscal Decentralization ◽  
Least Square Method ◽  
Local Economy ◽  
Least Square ◽  
Block Grant ◽  
Flypaper Effect ◽  
Fiscal Transfers ◽  
East Kalimantan ◽  
The Impact

Over the last decade of Indonesia's fiscal decentralization era, the amount of intergovernmental fiscal transfers has increased substantially. The increase of intergovernmental fiscal transfers is expected to reduce the burden of local economy without sacrificing the quality of public service. This study aims to investigate whether the block grant transfer affect the spending behavior of local government. Using Pool Least Square method and taking East Kalimantan Province as case study, this study found the existance of flypaper effect. This finding emphasize the view of any increase in block grant of transfer will only induce higher spending. Therefore, in order to achieve the independency of local government as the objective of decentralization, some efforts should be taken to minimize the impact of flypaper effect.

Impact of Fiscal Decentralization Reforms in Albania

2020 ◽  
Author(s):  
Oltiana MUHARREMI ◽  
Lorena CAKERRI ◽  
Filloreta MADANI
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Free Market ◽  
Descriptive Analysis ◽  
Free Markets ◽  
Public And Private ◽  
Institutional Economic ◽  
The Impact ◽  
Decentralization Reforms

Decentralization and fiscal decentralization constitute one of the most followed trends for political and economic reform in recent years around the world. Albania, in the 1990s, begins its process of transitioning from a centralized economy to a free-market economy. This process is accompanied by transforming existing economic mechanisms and infrastructure to better function the free-markets model, but above all, with the need to develop and create new legal, institutional, economic, and social instruments and spaces to increase the allocation and efficiency of public and private resources. The objective of this study is to give an appropriate answer to the question: What has been the impact of decentralization reforms on the performance of public services provided by local government? The research paper will focus on the role that improvements and legislative changes play in the country's economic growth. Within the past two decades, progress is made in advancing decentralization reform, but there are still many challenges ahead, such as the lack of a clear legal and regulatory framework. Adding to that concern is the financial autonomy of local governments, which remains a challenge for the future. The research methodology used will be a descriptive analysis of data obtained from the Ministry of Finance and Economy and local municipalities on the impact of the reforms. Recommendations and suggestions will be given on the reforming process, as well as ways to increase the efficiency of local government units.

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.

Evolution of e-participation in Greek local government

2021 ◽  
pp. 1-15
Author(s):  
Constantina Costopoulou ◽  
Maria Ntaliani ◽  
Filotheos Ntalianis
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Local Government ◽  
Local Governments ◽  
Local Community ◽  
New Technologies ◽  
Mobile Apps ◽  
Digital Technologies ◽  
Decision Making Processes ◽  
The Impact

Local governments are increasingly developing electronic participation initiatives, expecting citizen involvement in local community affairs. Our objective was to assess e-participation and the extent of its change in local government in Greece. Using content analysis for 325 Greek municipal websites, we assessed e-participation status in 2017 and 2018 and examined the impact of change between these years. The assessment regards two consecutive years since the adoption of digital technologies by municipalities has been rapid. The main findings show that Greek local governments have made significant small- to medium-scale changes, in order to engage citizens and local societies electronically. We conclude that the integration of advanced digital technologies in municipalities remains underdeveloped. We propose that Greek municipalities need to consider incorporating new technologies, such as mobile apps, social media and big data, as well as e-decision making processes, in order to eliminate those obstacles that hinder citizen engagement in local government. Moreover, the COVID-19 outbreak has highlighted the need for enhancing e-participation and policymakers’ coordination through advanced digital technologies.

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

State Legislation Restricting and Enabling Local Governments in an Era of Preemption

2021 ◽  
pp. 0160323X2110384
Author(s):  
Keith Boeckelman ◽  
Jonathan Day
Keyword(s):  
Local Government ◽  
Gender Roles ◽  
Local Governments ◽  
Divided Government ◽  
Local Autonomy ◽  
State Legislation ◽  
Sexuality And Gender ◽  
And Gender ◽  
Using Data

This paper assesses state efforts to both restrict and enable local government discretion by using data from Project Vote Smart's “Key Votes” database. The results show that state legislation, both successful and unsuccessful, is more likely to limit local autonomy than to enhance it, although both tendencies occur. Republican legislators are more likely to support efforts to restrict discretion than Democrats are. Further, preemption attempts are particularly evident on “hot button” issues, such as guns, sexuality and gender roles, and immigration, although such initiatives are not necessarily more likely to successfully become law, especially under conditions of divided government.

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.

Socio-Technical Determinants of Information Security Perceptions in US Local Governments

2016 ◽  
Vol 12 (3) ◽  
pp. 1-20
Author(s):  
Eunjung Shin ◽  
Eric W. Welch
Keyword(s):  
Local Government ◽  
Information Security ◽  
Local Governments ◽  
Security Policy ◽  
Organizational Design ◽  
Online Media ◽  
Electronic Information ◽  
Security Risks ◽  
Decentralized Decision Making ◽  
Using Data

Concerns about electronic information security in government have increased alongside increased use of online media. However, to date, few studies have examined the social mechanisms influencing electronic information security. This article applies a socio-technical framework to model how technical, organizational and environmental complexities limit electronic information security perceived by local government managers. Furthermore, it examines to what extent organizational design buffers security risks. Using data from a 2010 national survey of local government managers, this article empirically tests the proposed model in the context of U.S. local government's online media use. Findings show that, in addition to technical complexity, organizational and environmental complexities are negatively associated with local managers' awareness of and confidence in electronic information security. On the other hand, internal security policy and decentralized decision-making appear to buffer security risks and enhance perceived information security.

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