scholarly journals How Effective Is Fiscal Decentralization for Inequality Reduction in Developing Countries?

2022 ◽  
Vol 14 (1) ◽  
pp. 505
Author(s):  
Kumba Digdowiseiso ◽  
Syed M. Murshed ◽  
Sylvia I. Bergh
Keyword(s):  
Developing Countries ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Defense Spending ◽  
Ethnic Inequality ◽  
Empirical Examination ◽  
Horizontal Inequality ◽  
The Relationship ◽  
Vertical Inequality ◽  
Distribution Of Income

The relationship between fiscal decentralization and vertical inequality has long received attention by fiscal federalism theorists. However, horizontal inequality has been largely overlooked. This study will present a novel empirical examination of the relationship between fiscal decentralization, vertical inequality, and horizontal inequality. Specifically, it will focus on how institutional quality and military expenditure affect the fiscal decentralization–inequality nexus across 33 developing countries in the period 1990–2014. Findings indicate that varieties of fiscal authority have a significant effect on distribution of income and ethnic inequality. This depends on the level of institutions and defense spending achieved by these developing countries.

scholarly journals Economic Growth by Means of Fiscal Decentralization: An Empirical Study for Federal Developing Countries

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402096808
Author(s):  
Imran Hanif ◽  
Sally Wallace ◽  
Pilar Gago-de-Santos
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Tax Revenue ◽  
Weak Institutions ◽  
The Impact

The impact of fiscal federalism on economic performance has largely been studied in the developed world since the seminal work of Oates. In this article, we focus on a particular set of developing countries considered to be federal (Forum of Federations), to examine how fiscal decentralization has impacted their economic growth. In this context, we study the impact of tax revenue and expenditure decentralization on economic growth in developing federations. For this purpose, a panel data of 15 developing federations from 2000 to 2015 are analyzed by using a two-step system Generalized Method of Moments (GMM) estimation method. The results show that in federal developing countries, both tax revenue and expenditure decentralization have a significant, positive impact on economic growth. What is more, our findings show that the impact of fiscal decentralization on economic growth depends upon the level of perceived corruption and on the quality of the country’s institutions. Thus, empirical evidence depicts that the positive effect of fiscal decentralization on economic growth is tempered if the country is plagued with corruption, if it has weak institutions, and/or if it suffers from political instability. By contrast, a relatively corruption-free country featuring healthy institutions and a stable political environment could take fuller advantage of the effects of fiscal decentralization to improve economic growth.

scholarly journals Food Insecurity and Conflict Events in Africa

2018 ◽  
Vol 24 (2) ◽  
Author(s):  
Syed Mansoob Murshed ◽  
Muhammad Badiuzzaman ◽  
Rashel Hasan
Keyword(s):  
Food Insecurity ◽  
Government Expenditure ◽  
Price Volatility ◽  
Political Events ◽  
Horizontal Inequality ◽  
Quality Of Governance ◽  
Conflict Risk ◽  
The Relationship ◽  
Vertical Inequality

AbstractThe aim of this paper is to examine the relationship between food insecurity and conflict events short of war in Africa, taking account of a host of mediating factors, including the degree of inequality, the level of development, democratic quality, quality of governance and the degree of government expenditure, which we incorporate into our analysis. Our results suggest that food price volatility does contribute significantly to conflict events measured by political events in Africa (ACLED). Greater democracy can engender more conflict, but in a non-linear fashion. The broader V-DEM participatory index of democracy also encourages more protest. Our governance variables are significant, emphasising the salience of state capacity in this regard. An innovation of our study is the inclusion of inequality. We deploy two metrics of vertical inequality: the GINI coefficient and the broader V-DEM egalitarian index. The GINI index of income inequality has a counter-intuitive statistically insignificant sign, suggesting that greater income equality or middle-class share of income results in greater political unrest. We also utilise political measures of inter-group horizontal inequality which significantly engender conflict risk.

Impact of Fiscal Decentralization on Private Savings in a Developing Country

2017 ◽  
Vol 12 (3) ◽  
pp. 259-285 ◽  
Author(s):  
Imran Hanif ◽  
Pilar Gago-de Santos
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Empirical Studies ◽  
Vector Error Correction ◽  
Long Run ◽  
Major Interest ◽  
Short Run ◽  
Private Savings

In this article, we provide empirical evidence on the long-run relationship between fiscal decentralization and private savings in a developing country. We take into consideration the particular impact of fiscal decentralization on private savings and investment as vehicles for fostering growth in Pakistan over a period of almost four decades (1972–2010). Additionally, we use the same dataset to capture the short-run dynamics between these variables. We find a significant and positive correlation between fiscal decentralization and private savings in Pakistan during the period in question. To test this relationship for the long run, we have resorted to co-integrated variables; by contrast, for analysis of the short run, we used a vector error correction model (ECM). Private savings are positively correlated with the fiscal decentralization process from a revenue perspective. Though previous empirical studies have shown mixed results—in the sense that inconclusive outcomes still prevail when linking growth and fiscal federalism—our findings could be of major interest to other developing countries currently undertaking fiscal decentralization. According to our analysis, fiscal decentralization may indeed play a key role in promoting economic growth in developing countries.

scholarly journals Social Mobility and Horizontal Inequality

2021 ◽  
pp. 398-423
Author(s):  
Patricia Funjika ◽  
Rachel M. Gisselquist
Keyword(s):  
Social Mobility ◽  
Intergenerational Mobility ◽  
The Rule Of Law ◽  
Horizontal Inequality ◽  
Global North ◽  
Lower Mobility ◽  
The Relationship ◽  
Vertical Inequality ◽  
Horizontal Inequalities ◽  
Over Time

Research on social mobility has paid considerable attention to links with inequality. The vast majority of this work, however, has focused on ‘vertical’ inequality between individuals or households, rather than ‘horizontal’ inequality between groups in society. This chapter speaks to the latter, with focus on the persistence over time of horizontal inequalities between ethnic and culturally defined groups. Not only is such persistence due to low intergenerational mobility overall, we argue, it also is due to lower mobility for disadvantaged as compared with advantaged groups in many societies. Group-based discrimination, among other factors, contributes. We posit further that the relationship between low mobility and persistent horizontal inequality is a comparatively larger problem for Global South as compared to Global North countries, because they are, on average, contexts with lower intergenerational mobility, higher horizontal inequality, and weaker state capability and the rule of law.

The Nexus between Financial Development and Human Development: The Case of Developing Countries

2020 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Bilgehan Tekin
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Human Development ◽  
Financial Development ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Analysis ◽  
Development Index ◽  
Development Levels ◽  
The Relationship

The purpose of this study to examine the relationship between financial development and human development in the health and welfare dimensions of developing countries. This study aims to determine whether the financial developments of the countries have an effect on the basic human development of the individuals and whether human development indicators have an impact on financial development. In this study, the relationship between financial development and human development has been tried to be revealed by using data obtained from developing countries. Financial development levels of the countries were measured with the developed financial development index. The index is calculated by using M3 / GDP, private sector loans / GDP and loans to banks from private sector / GDP ratios. The human development index is calculated by considering various health indicators and GNP per capita. The data includes annual data for the period 1970-2016. Pedroni and Kao cointegration analysis and Dumitrescu & Hurlin panel causality analysis were performed in the study. According to the results of the study, the cointegration relationship was determined between the two variables. There is also a two-way causality between the variables.

Diversification propaganda work with foreign audiences

2020 ◽  
Vol 4 (4(13)) ◽  
pp. 31-50
Author(s):  
Shiyu Zhang ◽  
Keyword(s):  
Developing Countries ◽  
International Relations ◽  
Strategic Partnership ◽  
The Past ◽  
Bilateral Relations ◽  
The Media ◽  
The Relationship

Over the past decade, bilateral relations between China and Russia have attracted the attention of the whole world. As neighbors and rapidly developing countries, China and Russia are becoming increasingly important in the international arena. The strategic partnership and interaction between China and Russia occupy a significant place in the politics of both countries. Cooperation is developing dynamically in various fields, primarily in politics. After 2012, a change of government took place in China and Russia, which brought new changes to international relations. Studying the involvement of the media in this process can clarify their impact on international relations, in particular, their role in the relationship between China and Russia.

Relationship among social tactics, job embeddedness, and affective commitment in newcomers: the moderating effect of workplace spirituality

2021 ◽  
pp. 1-21
Author(s):  
Hsien-Long Huang ◽  
Li-Keng Cheng ◽  
Pi-Chuan Sun ◽  
Yi Shiuan Jiang ◽  
Hsin Hua Lin
Keyword(s):  
Work Experience ◽  
Affective Commitment ◽  
Human Resources Management ◽  
Workplace Spirituality ◽  
Job Embeddedness ◽  
Moderating Effect ◽  
Empirical Examination ◽  
Employee Survey ◽  
The Cost ◽  
The Relationship

Abstract The cost of recruitment and training of newcomers can be a burden for enterprises, causing adverse effects on human resources management. Although much research has addressed employee turnover, less attention has been paid to methods of improving the retention of new hires. This study is an empirical examination of the increase in predictive strength of antecedents of affective commitment for comparing newcomers’ workplace spirituality. The results of an employee survey completed by 237 newcomers with under two years of work experience indicate that socialization tactics have a direct impact on job embeddedness, which in turn has a direct effect on affective commitment. Workplace spirituality has a significant moderating effect on the relationship between socialization tactics and job embeddedness. Also, workplace spirituality has a significant moderating effect on the relationship between job embeddedness and affective commitment.

scholarly journals Corporate debt maturity and economic development

2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Crisis ◽  
Firm Size ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Content Type ◽  
Country Level ◽  
The Relationship ◽  
Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

Sign in / Sign up

Export Citation Format

Share Document