Fiscal Decentralization and Economic Growth Reconsidered: The Role of the Institutional Setting

2013 ◽  
Author(s):  
Andrea Filippetti ◽  
Agnese Sacchi
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Institutional Setting

scholarly journals Institutions and development in MENA region: evidence from the manufacturing sector

2015 ◽  
Vol 42 (8) ◽  
pp. 717-732 ◽  
Author(s):  
Mahmoud Arayssi ◽  
Ali Fakih
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Political Institutions ◽  
Civil Law ◽  
Institutional Setting ◽  
Mena Region ◽  
Content Type ◽  
Determinants Of Economic Growth ◽  
The Relationship

Purpose – The purpose of this paper is to study the role of institutions (including civil law origin), financial deepening and degree of regime authority on growth rates in the Middle East and North Africa region. Design/methodology/approach – This paper examines the implications of industrial firm-related and national factors for the determinants of economic growth using panel data through a fixed effect model. Findings – The results reveal that English civil law origin and the establishment of the rule of law work with the development of financial institutions to increase economic growth in these economies; however, the democratization of the political institutions and foreign direct investment do not assist financial development in promoting economic growth. Research limitations/implications – Data covered is limited to four years. Social implications – The findings emphasize the prominence of overcoming institutional weaknesses and establishing transparent public policy governing businesses as a pre-requisite for successful universal integration in developing countries. Originality/value – This paper contributes to the literature on the relationship between finance and economic growth in two aspects. First, the authors focus on the contribution of the institutional setting and its interaction with the financial development and how this affects economic growth of the manufacturing firms. Second, the authors explore the relationship between the role of institutions, governance, the country civil law origin and the economic growth.

scholarly journals DESENTRALISASI FISKAL DAN PERUBAHAN STRUKTUR EKONOMI: STUDI PERBANDINGAN KAWASAN SULAWESI DAN JAWA

2018 ◽  
Vol 18 (4) ◽  
pp. 431-451
Author(s):  
Muh. Amir Arham
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Public Goods ◽  
Fiscal Decentralization ◽  
Economic Structure ◽  
Panel Analysis ◽  
Primary Sector ◽  
Efficiency And Effectiveness ◽  
Negative Effect

Fiscal decentralization policies by giving greater authority to the regions to create efficiency and effectiveness to provide public goods, because the area is considered better understand the preferences of the community. Besides, fiscal decentralization policies can accelerate economic growth and changes in economic structure that has a devastating impact on the region is still considered backward. In general, backward areas still rely on primary sectors such districts/municipalities in Sulawesi, while the districts/municipalities in Java, relying on non-primary sector tends to be more advanced. Therefore, in general the economy is still underdeveloped Sulawesi compared to Java. The purpose of this research is to analyze the effect of fiscal decentralization on economic structural change districts/municipalities by comparing the two areas considered different economic structure,  Sulawesi and Java. By using a panel analysis of data from 2001-2010 results showed that the fiscal decentralization policies has no effect on changes in the economic structure in Sulawesi. Java, while in the region shows that the negative effect of fiscal decentralization, it means diminishing the role of the primary sector, which leads to changes in the economic structure.

Decentralization and economic growth reconsidered: The role of regional authority

2016 ◽  
Vol 34 (8) ◽  
pp. 1793-1824 ◽  
Author(s):  
Andrea Filippetti ◽  
Agnese Sacchi
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Policy Implications ◽  
Property Taxes ◽  
Institutional Settings ◽  
Regional Authority ◽  
Institutional Void ◽  
National Governments ◽  
The Relationship

Most of the empirical analysis explores the relationship between fiscal decentralization and economic growth within an institutional void. This paper investigates the connection between fiscal decentralization and economic growth in different institutional settings in 21 OECD countries over the period 1970–2010. We find that the pro-growth effects of fiscal decentralization depend critically on the authority of sub-national governments: tax decentralization leads to higher (lower) rates of economic growth when coupled with high (low) administrative and political decentralization. Tax decentralization is more conducive for growth if sub-national taxes accrue mostly from autonomous revenues such as property taxes. Overall, this provides evidence of institutional complementarities at work among decentralization dimensions leading to relevant insights for policy implications.

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 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 The Role of Human Development and Decentralization toward Poverty Through Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 39
Author(s):  
Jihad Lukis Panjawa ◽  
Joko Triyanto
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Direct Effect ◽  
Sustainable Development Goals ◽  
Causal Model ◽  
Fiscal Decentralization ◽  
The Sustainable Development ◽  
Development Goals ◽  
Significant Direct Effect

Efforts to reduce poverty that continue in the sustainable development goals (SDGs), need to research with different approaches for each different problem. The objective of this research is to analyze the direct and indirect effects of human development and fiscal decentralization on poverty through economic growth in eastern Indonesia. The analytical method used the causal model for directly observed variables. The results show that there is no significant effect on human development and fiscal decentralization on economic growth. In addition, human development has negative and significant direct effect on poverty but does not affect poverty through economic growth. Fiscal decentralization has no effect on poverty through economic growth, while economic growth has negative and significant direct effect on poverty. Policy by prioritizing improving human resource qualities will be effective in reducing poverty directly.

scholarly journals DESENTRALISASI FISKAL DAN PERUBAHAN STRUKTUR EKONOMI: STUDI PERBANDINGAN KAWASAN SULAWESI DAN JAWA

2017 ◽  
Vol 18 (4) ◽  
pp. 431
Author(s):  
Muh. Amir Arham
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Public Goods ◽  
Fiscal Decentralization ◽  
Economic Structure ◽  
Panel Analysis ◽  
Primary Sector ◽  
Efficiency And Effectiveness ◽  
Negative Effect

Fiscal decentralization policies by giving greater authority to the regions to create efficiency and effectiveness to provide public goods, because the area is considered better understand the preferences of the community. Besides, fiscal decentralization policies can accelerate economic growth and changes in economic structure that has a devastating impact on the region is still considered backward. In general, backward areas still rely on primary sectors such districts/municipalities in Sulawesi, while the districts/municipalities in Java, relying on non-primary sector tends to be more advanced. Therefore, in general the economy is still underdeveloped Sulawesi compared to Java. The purpose of this research is to analyze the effect of fiscal decentralization on economic structural change districts/municipalities by comparing the two areas considered different economic structure,  Sulawesi and Java. By using a panel analysis of data from 2001-2010 results showed that the fiscal decentralization policies has no effect on changes in the economic structure in Sulawesi. Java, while in the region shows that the negative effect of fiscal decentralization, it means diminishing the role of the primary sector, which leads to changes in the economic structure.

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

Stepping in the Shoes of Leaders of Populist Right-Wing Parties

2017 ◽  
Vol 48 (1) ◽  
pp. 40-46 ◽  
Author(s):  
Jolanda Jetten ◽  
Rachel Ryan ◽  
Frank Mols
Keyword(s):  
Economic Growth ◽  
Growth Condition ◽  
Baseline Condition ◽  
Right Wing ◽  
Economic Context

Abstract. What narrative is deemed most compelling to justify anti-immigrant sentiments when a country’s economy is not a cause for concern? We predicted that flourishing economies constrain the viability of realistic threat arguments. We found support for this prediction in an experiment in which participants were asked to take on the role of speechwriter for a leader with an anti-immigrant message (N = 75). As predicted, a greater percentage of realistic threat arguments and fewer symbolic threat arguments were generated in a condition in which the economy was expected to decline than when it was expected to grow or a baseline condition. Perhaps more interesting, in the economic growth condition, the percentage realistic entitlements and symbolic threat arguments generated were higher than when the economy was declining. We conclude that threat narratives to provide a legitimizing discourse for anti-immigrant sentiments are tailored to the economic context.

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