How Does Fiscal Autonomy Influence Fiscal Outcomes Depending on Corruption

2021 ◽  
Vol 19 (1) ◽  
pp. 91-109
Author(s):  
Soyoung Park ◽  
Sungchan Kim
Keyword(s):  
Panel Data ◽  
South Korea ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Data Set ◽  
Fiscal Autonomy ◽  
Fiscal Outcomes ◽  
Subnational Governments

As fiscal decentralization has been vigorously implemented, fiscal autonomy has become more prevalent in subnational governments. However, fiscal outcomes with greater fiscal autonomy depend upon how well and how responsibly government finances are managed. This study examines how fiscal autonomy affects fiscal outcomes depending on the level of corruption by using a panel data set of 83 cities in South Korea from 2010 to 2017. According to the results, fiscal autonomy causes local governments to spend more. However, its effectiveness may differ based on the composition of fiscal autonomy and its expenditure categories. Additionally, this study finds that less corrupt local governments spend less and have less debt under higher levels of fiscal autonomy.

Fiscal Decentralization in Transition Economies

2004 ◽  
pp. 126-141
Author(s):  
A. Chernyavsky ◽  
K. Vartapetov
Keyword(s):  
Public Finance ◽  
Transition Economies ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Government Control ◽  
Finance Reform ◽  
Fiscal Transfers ◽  
Fiscal Autonomy ◽  
Subnational Government ◽  
Tax Autonomy

By employing the methodology developed by the OECD the paper assesses the degree of revenue decentralization in Russia in comparison with other post-communist European countries. The paper provides theoretical arguments underpinning fiscal decentralization, analyzes the composition of subnational government revenues, the level of regional and local tax autonomy and types of intergovernmental fiscal transfers. The analysis presents the composition of revenues depending on the degree of subnational and local government control. In comparison with other transition countries fiscal decentralization in Russia is relatively low. It is concluded that Russia's public finance reform has not progressed towards providing greater fiscal autonomy for regional and local governments.

scholarly journals “State administration” vs. self-government in the Slovak and Czech Republics

2008 ◽  
Vol 41 (3) ◽  
pp. 339-358 ◽  
Author(s):  
Phillip J. Bryson
Keyword(s):  
Public Administration ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Eu Accession ◽  
Transition Experience ◽  
State Administration ◽  
Subnational Governments

In the transition experience, the Czech and Slovak Republics have made some effort to achieve fiscal decentralization. From independence to EU accession, the devolution of power designed to strengthen the autonomy of local governments according to the principles of subsidiarity have also included a reform of public administration. The nature of reform efforts and their implications for fiscal decentralization are analyzed. The failure to achieve a robust autonomy for subnational governments is due to the ongoing adherence to the notion of “state administration” as opposed to self-government in both republics.

scholarly journals Desentralisasi Fiskal, Tax Efiort dan Pertumbuhan Ekonomiz Studi Empirik Kabupaten/Kota di Indonesia 2001-2008

2010 ◽  
Vol 11 (1) ◽  
pp. 21-34
Author(s):  
D. S. Priyarsono ◽  
Budi Asih ◽  
Neli Agustina
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Positive Role ◽  
Data Set ◽  
Time Period ◽  
Regional Governments

Indonesia has implemented a new policy of regional autonomy and fiscal decentralization for almost ten years. One of the objectives of this fiscal decentralization is to give the full autonomy to local governments in spending and managing their revenues. The local governments have the authority to explore and collect their own-source revenue ('Pendapatan Asli Daerah', or PAD), i.e. through the improvement of their tax effort. The objectives of this study are: (i) to describe the fiscal performance of districts and municipalities in Indonesia, both in the revenue as well as the expenditure sides, (ii) to analyze the effects of intergovernmental transfers (’dana perimbangan', or balancing fund from the central to regional governments) on regional tax efforts, and (iii) to identify the regional economic growth elasticity of intergovernmental transfers and own-source revenue. This study employs a panel data set of 336 districts and municipalities covering the whole area of Indonesia over the time period of 2001-2008. The results show a relatively low contribution of PAD to regional revenues, indicating high fiscal dependency of regional governments on the central government. Intergovernmental transfers positively effect tax efforts. The result of the elasticity analysis also indicates a positive role of the transfers as stimuli to economic growth.

scholarly journals ESTIMATION OF FISCAL SPACE OF LOCAL BUDGETS IN THE CONTEXT OF UKRAINIAN REGIONS DEVELOPMENT

2017 ◽  
pp. 69-81
Author(s):  
Myroslav KHOMIAK
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Economic Problems ◽  
Academic Literature ◽  
Fiscal Autonomy ◽  
Panel Regressions ◽  
Development Goals ◽  
Fiscal Space ◽  
Local Budget

Introduction. Fiscal decentralization, which is now actively being implemented in Ukraine, provides for increasing the level of fiscal autonomy of local budgets. In this context, it is necessary to assess the real possibilities of local governments to form a fiscal space, which should be understood as the ability to generate income and to implement rational expenditure in order to achieve regional development goals. Purpose. The goal of the article is a quantitative assessment of the fiscal space of local budgets to identify promising areas of fiscal decentralization in Ukraine. Methods. The theoretical basis of the article consists of foreign and domestic academic literature. As a methodological basis are used panel regressions for estimating the tax potential of regions and methods of structural analysis and comparisons - for investigation of trends in local budgets. Results. Formation of the fiscal space of local budgets in the article interpreted as a combination of realization of tax potential and restructuring of expenditures of local budgets. By using panel regressions are identified the regions with the highest tax potential. Based on studying the structure of local budget expenditures revealed that by highest fiscal space are characterized areas where industry is less developed and which are considered less economically successful. Conclusions. The study revealed that regions with low fiscal space and tax potential are forced to generate debt for solving their own financial and economic problems, while regions with high tax potential and greater fiscal space receive significant amounts of intergovernmental transfers and do not form a municipal debt. Despite this, was justified the necessity of the transition to a redistribution of financial resources on the goal-basis principle.

scholarly journals The Impacts of Fiscal Decentralization on the Quality of Government in China: A Test of Market-Preserving Federalism at the Provincial Level

2020 ◽  
Vol 11 (2) ◽  
pp. 89
Author(s):  
Ping Zhang ◽  
Haosheng Zheng ◽  
Qiang Ren
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Empirical Test ◽  
Optimal Level ◽  
Potential Influence ◽  
Eastern Area ◽  
Fiscal Autonomy ◽  
Self Sufficiency

The potential influence of fiscal decentralization on economic growth in China has been extensively studied. This paper examines whether fiscal decentralization has influenced marketization and regional disparity (intra-provincial expenditure inequality) and the tradeoff between them (quality of government, QoG). When local governments have sufficient fiscal autonomy, decentralizing fiscal power to sub-provincial governments is found to have a greater impact on increasing marketization, highlighting the important role of fiscal self-sufficiency in the effect of fiscal decentralization on market efficiency. Measuring the QoG from the marketization versus disparity perspective, we find a reversed U-shape relationship between revenue decentralization and QoG. Comparing the effect of fiscal decentralization on the QoG in different regions, intra-provincial revenue decentralization in the eastern area is above the optimal level, while the fiscal decentralization in the middle and western areas is near the optimal level. This paper combines the perspectives of fiscal decentralization and governance and conducts an empirical test of market-preserving federalism to explain differences among provinces.

scholarly journals The Evolutionary Paradigm of Fiscal Federalism: Transformation of the United States Experience into Ukrainian Decentralism

2021 ◽  
Vol 8 (523) ◽  
pp. 109-116
Author(s):  
A. I. Krysovatyy ◽  
◽  
F. P. Tkachyk ◽  
Keyword(s):  
United States ◽  
United States Of America ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
The United States ◽  
Public Authorities ◽  
Fiscal Autonomy ◽  
State And Local ◽  
States Experience

The modern paradigm of effective social and economic development of regions must take into consideration the dialectics of fiscal federalism in the symbiosis of its essential determinants with fiscal decentralization. The purpose of the article is to scientifically and conceptually substantiate the model of fiscal federalism of the United States of America in the field of implementation of adequate provisions into Ukrainian decentralization. The article examines the conceptual provisions of fiscal federalism, substantiates the forms of decentralization of powers among levels of government. The architectonics and evolutionary paradigm of fiscal federalism in the United States of America are covered. The risks and effects of fiscal federalism were monitored for the purposes of implementing its basic aspects into Ukrainian practice. Theories of the first and second generations of fiscal federalism are considered. It is ascertained, that the principles of fiscal federalism are used in the practice of unitary countries. Public authorities actively apply mechanisms of cooperation with municipalities in the context of delegation of tax and expenditure powers. Emphasis is placed on the tax component of the intensification of fiscal autonomy of local governments. At the same time, the experience of the United States of America has shown the importance of directing grants and transfers to social projects of municipalities. The priorities of adaptation of actual postulates of fiscal federalism into Ukrainian system of interbudgetary relations under conditions of decentralization of powers are outlined. It is emphasized that fiscal federalism should not be limited to the redistribution of financial resources between the State and local governments. It should encourage amalgamated territorial hromadas to financial autonomy and increase tax potential to improve the prosperity of citizens

scholarly journals Монгол улсад төвлөрлийг сааруулах асуудал

2017 ◽  
pp. 40-45
Author(s):  
Энхтайван Л ◽  
Ариунаа Л
Keyword(s):  
Resource Allocation ◽  
Public Goods ◽  
Political Science ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
The Political ◽  
Local Authorities ◽  
Fiscal Autonomy ◽  
Fiscal Centralization

No Mongolian AbstractIn general decentralization is connected with the transfer of responsibilities for planning, management, resource raising and allocation from the central government to the lower levels of government. In particular fiscal decentralization means that local authorities become responsible for the expenditure and revenue assignment. From the economic and political science perspectives fiscal decentralization will improve resource allocation and accountability, which results in an efficient and effective supply of public goods and support private markets.In last decade Mongolia has introduced a number of decentralization measures, which followed a top dawn approach and were slowly implemented without any integrated decentralization strategy. Currently Mongolia is a de-concentrated state with fiscal centralization. The local governments are still far away from having the political, administrative and fiscal autonomy to manage their own affairs.

Are Spending Patterns of Local Government Interdependent?: Strategic Interactions of U.S. Local Governments in California

2019 ◽  
Vol 17 (1) ◽  
pp. 121-137 ◽  
Author(s):  
Sungchan Kim ◽  
Soyoung Park
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Environmental Conditions ◽  
Local Governments ◽  
Strategic Interactions ◽  
Geographic Proximity ◽  
County Governments ◽  
Policy Issues ◽  
Fiscal Autonomy ◽  
Spending Patterns

This study examines if a local government’s policies depend on that of similarly situated counties, called “neighborliness,” by analyzing the panel data of county governments in California from 2001 to 2014. In our study, the results show that the spending pattern of a local government is positively influenced by neighboring governments that are similar in terms of personal income and geographic proximity, whereas racial similarity does not work as a “neighboring” characteristic. Local governments benchmark the policies or programs of other neighboring governments, as they might face similar policy issues based on similar economic and environmental conditions. Interestingly, we also find that the degree of mimicking behavior depends on fiscal autonomy.

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