scholarly journals Vertical Fiscal Imbalance and Regional Economic Growth

2020 ◽  
Vol 12 (6) ◽  
pp. 39-53
Author(s):  
B.I. Alekhin ◽  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
Fiscal Imbalance ◽  
Vertical Fiscal Imbalance ◽  
The Impact

This study examines the impact of fiscal decentralization on regional economic growth using panel data for 82 subjects of the Russian Federation for the period 2005-2018. General theoretical framework was drawn from the second-generation theory of fiscal federalism, and panel data econometrics suggested the appropriate empirical model and estimation method. The pooled mean group method was used to estimate an autoregressive distributed lags model based on Solow-Swan theory of economic growth. The results indicate that vertical fiscal gap has a negative and significant long-term impact on regional economic growth while vertical fiscal imbalance has a positive and significant long-term effect. The study is consistent with the modern theory of fiscal federalism, W.E. Oates’ matching hypothesis and previous empirical work using Russian data. The study also found evidence of conditional convergence of regional economies.

scholarly journals Fiscal Decentralization and Economic Growth in Thailand: A Cross-Region Analysis

2019 ◽  
Vol 11 (1) ◽  
pp. 147
Author(s):  
Phouthakannha Nantharath ◽  
Sirisak Laochankham ◽  
Peerasit Kamnuasilpa ◽  
Eungoo Kang
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Local Level ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
Positive Effects ◽  
Fiscal Imbalance ◽  
Vertical Fiscal Imbalance

Prior to the 1997 decentralization, over 90% of national revenue in Thailand were held at the central government and less than 10% of public expenditure were allocated to local governments across country. Lack of adequate revenue and access to sufficient expenditure budget has caused disparity and ineffectiveness of public services and economic development at the local level. This study examines the effects of the fiscal decentralization on the economic growth in Thailand from 2004 to 2017. The research methodology uses a cross panel data analysis across five provincial regions and considers revenue decentralization, expenditure decentralization, transfer dependency, and vertical fiscal imbalance as influential factors of growth. By applying Panel Fully Modified Least Squares (FMOLS) and Panel Dynamic Least Squares (DOLS) regression approaches, the study finds empirical evidence of positive effects of revenue decentralization, transfer dependency, and vertical fiscal imbalance on regional economic growth across five regions. However, this study also finds that expenditure decentralization has a negative impact on regional economic growth, but level of significance is weak. These findings suggest that the rapid increase in metropolis government expenditure budget following the years of political transition in 2006 and 2014 has caused stagnation in public investment at local level across country, thereby resulted in a lagged behind industrial output and gross provincial product. Lack of budget expenditures also weakens demand and stagnates growth in manufacturing, construction, and real estate activities, thereby rendering fiscal imbalances and development gaps in Thai economy.

Assessing the Impact of the Factors in the Digital Transformation on the Regional Economic Growth

REGIONOLOGY ◽  
2021 ◽  
Vol 29 (3) ◽  
pp. 486-510
Author(s):  
Tatyana V. Mirolyubova ◽  
Marina V. Radionova
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Digital Transformation ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
The Russian Federation ◽  
Regional Product ◽  
The Impact ◽  
Regions Of Russia

Introduction. The scientific problem under consideration is of particular relevance due to the need to assess the impact of the factors in the digital transformation of the regional economy and in the economic growth on the economic development of the regions of the Russian Federation. Based on the research conducted, the article presents an econometric assessment of the dependence of the level of the gross regional product per capita in the regions of Russia on such factors as digital labor and digital capital. Materials and Methods. The authors analyzed panel data from the Federal State Statistics Service covering 87 regions of Russia for the period from 2010 to 2018. The research methodology is based on the use of the Cobb–Douglas production function, statistical and correlation data analysis, as well as on econometric methods for studying panel data. Results. To analyze the impact of the digital transformation of the economy on the regional economic growth of the regions of Russia, various models based on panel data have been considered, such as the pooled model, fixed effects models, random effects models, as well as time-varying effects models using dummy variables. Based on statistical criteria, the best model has been chosen and conclusions have been drawn about the nature of the impact of the digital transformation indicators on the gross regional product per capita in the regions of Russia. Discussion and Conclusion. The results of econometric modeling have demonstrated that digital factors in economic growth (digital labor, digital capital), along with common factors in economic growth (labor and capital), affect the regional economic growth. According to the regional data for the period from 2010 to 2018, the time fixed effects model has proved to be the best model of the impact of the factors in economic growth and digital transformation on the economic development of the regions of the Russian Federation. The research results can be used when developing a public policy aimed at stimulating the digital transformation of the regional economy.

scholarly journals REGIONAL DISPARITIES, PUBLIC POLICIES AND ECONOMIC GROWTH IN BRAZIL

2019 ◽  
Vol 5 (2) ◽  
pp. 264
Author(s):  
Marcelo Ladvocat ◽  
Vander Lucas
Keyword(s):  
Economic Growth ◽  
Fiscal Federalism ◽  
Local Economic Development ◽  
Fiscal Decentralization ◽  
Federal District ◽  
Regional Disparities ◽  
Geographic Concentration ◽  
Goods And Services ◽  
Fiscal Imbalance ◽  
Vertical Fiscal Imbalance

Fiscal Federalism, the division of economic responsibilities between the central and local government, has been an ongoing debate. The few existing studies on Brazilian’s fiscal structure facing regional economic growth shows conflicting results. However fiscal decentralization can lead to a more efficient provision of local public goods and services to promote welfare state, citizen’s preferences and economic growth, Brazil's policymakers seem to have a different view. In a country where only three states in 26 hold 53% of Brazil’s PNB, disparities shows-up claiming to be solved. There are still some questions as to whether all regions can achieve real gains with greater autonomy. Decentralization may not solve all subnational entities problems, especially the issue of the poorer regions losing competitiveness about the richer regions, which increases regional disparities. In this way, more recent studies have focused on the different channels through which fiscal decentralization can affect the issue of disparities such as taxes and duties, the autonomy of spending and vertical fiscal imbalance. The present work investigates the relationship between fiscal decentralization, regional disparities and economic growth within 26 Brazilian’s states and Federal District, in the period 2001-2012. Attention was given to channels through which decentralization can affect inequality: human capital, vertical fiscal imbalance, population’s geographic concentration, and local taxes. The empirical analysis suggests that a decentralized fiscal structure can reduce regional disparities by implementing better government policies that favor local economic development.

scholarly journals Measuring the Impact of Fiscal Decentralization on Economic Growth and Income Inequality using the Heuristic Network

2019 ◽  
Vol 8 (5C) ◽  
pp. 1016-1024
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Fiscal Decentralization ◽  
Regional Economic Growth ◽  
Financial Resources ◽  
Regional Economic ◽  
East Kalimantan ◽  
Regional Budgets ◽  
The Impact

To achieve regional economic growth, the role of regional budgets is very important. In this regard, the utilization of regional economic and financial resources is an important factor in supporting the implementation of the fiscal decentralization system in the area. The implementation of fiscal decentralization in Indonesia is marked by the process of transferring financial resources to regions in significant amounts. In the last five years (2011-2015), the proportion of balancing funds to total regional income nationally reached an average of 73%. Despite the huge spike in decentralization policies, the implementation of fiscal decentralization in East Kalimantan Province, one of Indonesia's provinces, till now has not been able to bring about improving the welfare of local communities. In reality, there is still income inequality, although still relatively low in East Kalimantan Province. This study performs to measure the impact of fiscal decentralization on economic growth and income inequality in East Kalimantan – Indonesia. The hypothesis in this study is that fiscal decentralization negatively affects income inequality directly or indirectly through economic growth in East Kalimantan – Indonesia. The aim of this study is how to use the heuristic network to prove this hypothesis.

scholarly journals PERAN MODAL MANUSIA TERHADAP PERTUMBUHAN EKONOMI REGIONAL DI JAWA

2017 ◽  
Vol 13 (1) ◽  
pp. 79 ◽  
Author(s):  
Aminuddin Anwar
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Fiscal Decentralization ◽  
Average Length ◽  
Critical Role ◽  
Regional Economic Growth ◽  
Positive Contribution ◽  
Regional Economic

Abstrak: Peran Modal Manusia Terhadap Pertumbuhan Ekonomi Regional di Jawa. Penelitian ini bertujuan untuk memberikan bukti empiris peran sentral modal manusia terhadap pertumbuhan ekonomi. Kontribusi tersebut difokuskan di Pulau Jawa karena menjadi pusat aktivitas perekonomian di Indonesia sehingga perlu dianalisis kontribusi pengembangan modal manusia terhadap pertumbuhan ekonomi regional. Penelitian ini menggunakan metode panel data pada 114 kabupaten dan kota di Pulau Jawa selama periode 2004-2013. Indikator modal manusia yang digunakan dalam penelitian ini adalah rata-rata lama sekolah untuk pendidikan dan angka harapan hidup untuk kesehatan. Hasil estimasi menunjukkan bahwa pendidikan dan kesehatan memiliki kontribusi positif terhadap pertumbuhan ekonomi regional. Hal ini mengindikasikan peran penting pendidikan sebagai salah satu sumber utama untuk mencapai pembangunan ekonomi yang lebih baik. Temuan lain dari penelitian ini adalah adanya peran positif dari investasi dan kontribusi yang cenderung negatif dari adanya desentralisasi fiskal. Kata kunci: Pertumbuhan Ekonomi Regional, Modal Manusia, Panel Data, Jawa Abstract: The Role of Human Capital Toward Regional Economic Growth in Java. The aim of this study is to provide empirical evidence of the central role of human capital in economic growth. The contribution of this study is focused on Java island as a center of economic activities in Indonesia that needs to be analyzed the contribution of human capital development to the growth of regional economies. This study uses panel data on 114 counties and cities in Java during the period 2004-2013. Human capital indicators employed in this study is the average length of school for education and life expectancy for health. The estimation results indicate that education and health have a positive contribution to regional economic growth. Its shows the critical role of education as one of the primary sources to achieve better economic development. Another finding of this study is the positive role of investment and tends to be a negative contribution of the fiscal decentralization. Keywords: Regional Economic Growth, Human Capital, Panel Data, Java

scholarly journals The Impact of Quality of Education and Higher Education on Economic Growth

2020 ◽  
Vol 9 (1) ◽  
pp. 64-70
Author(s):  
Arman Arman ◽  
Budhi Purwandaya ◽  
Asep Saefuddin
Keyword(s):  
Economic Growth ◽  
Regional Economic Growth ◽  
Quality Of Education ◽  
Regional Economic ◽  
Tertiary Institutions ◽  
Observation Units ◽  
Basic Capital ◽  
The Impact

Education is the basic capital to create quality economic growth. Skillful and competitive human resources are a source of basic capital to create religious industrial technological innovation in order to support quality economic growth. This study aims to (1) analyze the relationship between education and growth in Indonesia and (2) compile a formulation of education policy as an important driving factor in long-term growth. The observation units analyzed were 33 provinces in Indonesia in the period 2013-2015. The data is then analyzed using the Data Analysis Panel approach. The results showed that the level of prosperity and prosperity was positively correlated with regional economic growth. This shows that the more qualified human development and increasing prosperity, the better economic growth in the region. Furthermore, the better the quality of education, the better economic growth. This result is inversely proportional to the large number of universities where the number of tertiary institutions does not have an influence on regional economic growth. This shows that the number of universities does not have a positive effect if it is not balanced with the number of qualified lecturers.

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.  

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