scholarly journals Do Fiscal Transfers Foster Regional Economic Growth?

e-Finanse ◽  
2021 ◽  
Vol 17 (1) ◽  
pp. 19-27
Author(s):  
Naftaly Mose
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Regional Growth ◽  
Regional Economic Growth ◽  
Data Set ◽  
Regional Economic ◽  
Fiscal Transfers ◽  
Long Run ◽  
Physical Infrastructure ◽  
Fiscal Transfer

Abstract Fiscal transfer development across the world today has been in part driven by assertions of a supposed ‘economic dividend’ linked with the devolved financial spending. There is, however, little empirical evidence to validate these assertions in Kenya. It is against this background that this study was carried out to estimate the end product of fiscal transfer on regional economic growth in Kenya using a secondary panel data set. Using the ARDL estimation technique the long -run and error correction estimates of the model were generated. The findings revealed that increased fiscal transfer in recurrent budgets accelerates regional growth, hence confirming the Keynesian hypothesis. Conversely, fiscal transfer in capital expenditure was insignificant. This study recommends the need for policymakers to put in place policies and strategies that will improve budget allocation and execution in capital budgets so as to improve physical infrastructure and thus boost private productivity and consequently regional income growth.

scholarly journals Government Expenditure and Regional Economic Growth: The Direction of Causality

2020 ◽  
pp. 9-17
Author(s):  
Naftaly Mose
Keyword(s):  
Economic Growth ◽  
Regional Growth ◽  
Government Expenditure ◽  
Regional Economic Growth ◽  
Size Of Government ◽  
Macroeconomic Policies ◽  
Regional Economic ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run

This study examines the link between government expenditure and regional economic growth, over the period 2013 to 2017. Gross County Product per capita growth is used as indicator of regional economic growth. This study used Error Correction Model and Engle and Granger framework two step procedure to investigate the long-run and short-run equilibrium relationship between expenditure and regional growth. The analysis reveals that expenditure and regional growth are co-integrated and, hence a long-run equilibrium relationship exist between them. Non-devolved expenditure is found to be significant in determining regional growth and growth significantly affect non-devolved in short-run. Further, short-run uni-directional causality was detected between capital, recurrent expenditures and growth. This study argues that expansionary government expenditure accelerates regional economic growth in long-run. The absence of a long-run causality moving from growth to components of expenditure implies that economic growth macroeconomic policies can be implemented without adversely affecting the size of government expenditure.

scholarly journals Agricultural R&D, spatial spillover and regional economic growth in different R&D sectors of performance: evidence from a spatial panel in regions of the EU-28

2018 ◽  
Vol 64 (No. 4) ◽  
pp. 163-169 ◽  
Author(s):  
Anousheh Shahrzad ◽  
Hojabr-Kiani Kambiz ◽  
Mojtahed Ahmad ◽  
Ranjbar Homayoun
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Regional Growth ◽  
Regional Economic Growth ◽  
Business Enterprise ◽  
Regional Economic ◽  
Spatial Spillover ◽  
Spatial Panel ◽  
Economic Output ◽  
The Impact

Agricultural R&D has been identified as an important determinant of economic output in the agricultural sector. Surprisingly, in previous studies, spatial spillover associated with R&D spending in the agricultural sector has not been taken into account. This paper investigates the effects of spatial spillover of agricultural R&D on regional economic growth across EU-28 NUTS-II regions in the period 1995–2014. In particular, we extend previous studies by considering spillover in all sectors of agricultural R&D performance including business enterprise, government and higher education. The spatial Durbin panel data model is employed to estimate brooders effect including direct and indirect effects. Empirical results show a positive effect of agricultural R&D and its spatial spillover on regional growth in all performance sectors. Moreover, the impact of spatial spillover of agricultural R&D on regional growth depends on the performance of the R&D sectors; positive spillovers are stronger in the business enterprise sector. Finally, the interaction effect between the economic output of the agricultural sector of each region with that of its neighbours is significantly positive.  

scholarly journals Human Capital and Regional Economic Growth in Russia

2021 ◽  
Vol 17 (2) ◽  
pp. 57-80
Author(s):  
Boris Alekhin
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Capital Accumulation ◽  
Positive Impact ◽  
Regional Economic Growth ◽  
Human Capital Accumulation ◽  
Regional Economic ◽  
Long Run ◽  
Per Capita

This study examines the contribution of human capital accumulation to regional economic growth using panel data for 82 subjects of the Russian Federation over 2002–2019. This paper aims to test the hypothesis that in the long-run equilibrium there exists a connection between economic growth and human capital accumulation in the regions of Russia. From the point of view of econometrics, it would mean that we should refute the hypothesis that there is no cointegration of time series describing the aforementioned variables. General theoretical framework was drawn from the neoclassical growth theory, and panel data econometrics suggested the appropriate empirical methodology. Pooled mean group and fully modified least squares estimators were applied to an autoregressive distributed lags model based on the Solow model. The results indicate that accumulation of human capital has a positive and statistically significant long-term impact on the rate of growth of per capita income and that these variables are cointegrated. Such calculations allow us to make the following conclusions: per capita GRP is cointegrated with physical and human capital on the regional level. The cointegrating equation ‘explained’ more than 90% of per capita GRP variance. Human capital accumulation had a significant positive impact on per capita GRP growth in the long run; such impact exceeded the impact of physical capital accumulation. The positive impact of human capital accumulation on per capita GRP growth surpassed the negative elasticity of growth GRP by the amount of resource excluded from the real sector to provide support to students and maintain the regional education system. The paces at which regional economies were heading towards the steady state differed which is an evidence that there exist an incredible manifold of ways and means for regions to adjust to disbalancies

scholarly journals The nature of publicly funded innovation and implications for regional growth

2018 ◽  
Vol 28 (1) ◽  
pp. 6-21 ◽  
Author(s):  
Chay Brooks ◽  
Cristian Gherhes ◽  
Tim Vorley ◽  
Nick Williams
Keyword(s):  
Economic Growth ◽  
Business Model ◽  
Regional Growth ◽  
Business Model Innovation ◽  
Regional Economic Growth ◽  
City Region ◽  
Regional Innovation ◽  
Regional Economic ◽  
Content Type ◽  
The Impact

Purpose The aim of this paper is to unpack the nature of business innovation and understand the impact on regional innovation and competitiveness. Design/methodology/approach The paper is based on a qualitative study of Advanced Manufacturing and Advanced Materials businesses in the Sheffield City Region (UK). Interviews were conducted with 23 firms in exploring how innovation in the firm translates to innovation-led regional economic growth. Findings The paper demonstrates that there is a tendency of owner managers to focus on innovation in terms of the development of new products, processes and/or services. Many of the businesses interviewed were technologically innovative, yet there was little evidence of wider business model innovation. This, the authors conclude, stymies regional innovation and with it regional economic growth. Research limitations/implications This study is based on a case study of the Sheffield City Region and is not generalizable, but offers insights into the nature of business model innovation which are valuable in generating questions for further research. Practical implications The paper highlights the need to think of innovation in broader terms and the scope of business model innovation to not only improve the performance of firms but also regional economic growth. Originality/value Business model innovation is a growing domain of the literature, and this paper highlights how narrow interpretations of innovation may serve to limit growth business growth, and with it regional economic growth.

scholarly journals Networks and regional economic growth: A spatial analysis of knowledge ties

2017 ◽  
Vol 49 (6) ◽  
pp. 1247-1265 ◽  
Author(s):  
Robert Huggins ◽  
Piers Thompson
Keyword(s):  
Economic Growth ◽  
Regional Growth ◽  
Evidence Base ◽  
Knowledge Networks ◽  
Regional Economic Growth ◽  
Network Systems ◽  
Regional Economic ◽  
Organisational Knowledge ◽  
The Impact

In recent years, increased attention has been given to role of inter-organisational knowledge networks in promoting regional economic growth. Nevertheless, the empirical evidence base concerning the extent to which inter-organisational knowledge networks influence regional growth is at best patchy. This article utilises a panel data regression approach to undertake an empirical analysis of economic growth across regions of the UK. Drawing on the concept of network capital, significant differences in the stocks of network capital and flows of knowledge within and across regions are found, which are significantly associated with regional rates of economic growth. The analysis finds that both inter and intra-regional networks shape regional growth processes, highlighting the role of both embedded localised linkages and the importance of accessing more geographically distant knowledge. The study adds weight to the suggestion that one of the most interesting implications of endogenous growth theory relates to the impact of the spatial organisation of regions on flows of knowledge. It is concluded that the adoption of a relational approach to understanding differing economic geographies indicates that network systems are a key component of the regional development mix.

Fiscal decentralization and regional economic growth: Theory, empirical studies, and Russian experience

2016 ◽  
pp. 94-110 ◽  
Author(s):  
A. Yushkov
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Empirical Studies ◽  
Empirical Relationship ◽  
Regional Economic Growth ◽  
Growth Theory ◽  
Russian Regions ◽  
Regional Economic ◽  
Fiscal Transfers ◽  
Federal Center

The article deals with the theoretical and empirical relationship between fiscal decentralization and economic growth. Empirical analysis of Russian regions for 2005-2012 shows that excessive expenditure decentralization within the region, which is not accompanied by the respective level of revenue decentralization, is significantly and negatively related to regional economic growth. On the contrary, regional dependence on intergovernmental fiscal transfers from the federal center is positively associated with economic growth.

scholarly journals The Effect of Fiscal Balance Funding on Regional Economic Growth: Evidence from East Java Province Period 2015-2017

2020 ◽  
Author(s):  
Dwi Widyastuti ◽  
Farida Rahmawati
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Regional Economic Growth ◽  
Influence Coefficient ◽  
Regional Economic ◽  
Directorate General ◽  
Calculation Results ◽  
Fiscal Balance

This research aims to determine the effect of Fiscal Balance Funding on regional economic growth in East Java Province period 2015-2017. The data used in this research are Local Own Revenue (Pendapatan Asli Daerah), General Allocation Fund (Dana Alokasi Umum), Specific Allocation Fund (Dana Alokasi Khusus) and Village Fund (Dana Desa), Capital Expenditure (Belanja Modal) and Regional Gross Domestic Bruto (Produk Domestik Regional Bruto) from all district in East Java Province. The data used are obtained from the Directorate General of Fiscal Balance and the Central Bureau of Statistics. The sample in this study was 30 districts/cities in East Java Province and analytical method used is multiple linear regression analysis and path analysis. According to the calculation results based on the magnitude of the direct influence coefficient of the five variables shows that there is an indirect effect of District Own Revenue and General Allocation Fund on Regional Economic Growth through Capital Expenditure. Based on these results, the researchers provide suggestions that it is expected to allocate Special Allocation Fund for expenditures that have high impact on productive activities such as capital expenditure that can support regional economic growth. Keywords: Fiscal Balance Funding, Capital Expenditurel, Regional Economic Growth

scholarly journals Fiscal transfers and regional economic growth

2017 ◽  
Vol 26 (3) ◽  
pp. 651-671 ◽  
Author(s):  
H. Dawid ◽  
P. Harting ◽  
M. Neugart
Keyword(s):  
Economic Growth ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
Fiscal Transfers
Sign in / Sign up

Export Citation Format

Share Document