Search results

This paper provides empirical evidence regarding the effect of fiscal management performance on local economic development in an emerging economy.

The authors performed a panel data analysis based on data from the 5,568 Brazilian municipalities from 2006 to 2015. To consider if the difference in the characteristics of the municipalities can affect the results, the authors used different samples: a total of municipalities, metropolitan, nonmetropolitan, urban and rural municipalities. Furthermore, to check the difference of the effect on economic development associated with good and bad fiscal management in the municipalities, the authors considered a sample of the 500 best and the 500 worst fiscal management performances.

The findings indicate that an improvement in fiscal management is an important strategy to stimulate local economic development. In particular, the relevance of fiscal management performance to stimulate economic development is more significant in metropolitan and urban municipalities.

This analysis is the first to use data that take into account all the Brazilian municipalities covering information of the 21st century. Moreover, different from the previous literature, which considered efficiency from the data envelopment analysis (DEA), the authors used a fiscal management index that allowed one to consider a time-varying fiscal performance of the Brazilian municipalities.

The purpose of this paper is to identify the causal effect of high-speed railways (HSRs) and investigate the affecting channels; the second purpose is to examine how HSRs change the distribution of economic activity across cities and sectors.

A difference-in-difference strategy is implemented to estimate the impact of recently built HSRs on local economic performance in China, exploiting the geography and time variations in HSR operations.

Using panel data from China’s City Statistical Yearbook 2001–2019, the authors find that HSRs lead to a significant increase in cities’ gross domestic product (GDP) and GDP per capita, but the authors do not find any significant change in GDP growth. This conclusion still holds true after the authors address the endogeneity problems. A mechanism analysis shows that HSRs improve local economic performance mainly by increasing fixed asset investment. The authors also find that the HSR investment is a policy that favors metropolitan areas due to the larger increase in the GDP for larger cities and with HSRs, the industrial and service sectors will further agglomerate in larger cities.

The authors contribute to the literature in several ways. First, this paper improves the estimation strategy in identifying the HSR impact on the local economic performance. Second, this paper investigates the affecting channels of HSRs. This paper proves that HSRs in China promote the cities’ economic performance mainly by increasing the fixed asset investment. Third, this study provides evidence for the new economic geography models pioneered by Krugman (1991).

The purpose of this paper is to analyze the potential of remote areas in Indonesia and find out the important variables that influence key success factors of Local Economic Regional Development (LERD) program in several areas.

A series of structured interviews were conducted with the chairman and staff of local government, academician, private sectors and locals who are induced to work together to improve quality of life, create new opportunities and fight poverty in Bau-Bau, Singkawang and Kupang. Subsequently, the results from the structured interviews were analyzed using qualitative analysis to arrive at the model of LERD in Indonesia.

The findings show that variables that influence the key success factors of LERD in this research are resources endowment, social capital and local support as independent variables; entrepreneurial strategy as moderating variable; and perceived performance as dependent variable.

This study was conducted only in Indonesia which focused on local economic regional development in Indonesia. Despite this limitation, the findings of this study enable the construction of a general model that highlights LERD in chosen areas. The model is also expected to give an idea of how to develop economic region.

The paper adds to the literature on LERD by enabling researchers and practitioners to understand the model of LERD in Indonesia.

There are numerous reasons that may explain why the U.S. economy has performed well during the past twenty‐five years. One likely reason is that local economic development practices have enhanced American competitiveness. The first section develops a game theoretic model that show how local economic practices can result in either negative or positive sum outcomes for the nation as a whole. The second section describes how local economic development practices towards practices that are likely to result in better aggregate economic performance. The strong performance of the U.S. economy roughly coincides with the more efficient practices. The final section examines further practices that may make local economic stimulus more efficient.

This study aims to investigate the external effect of the economic growth target pressure of local governments on establishment-level SO₂ emissions.

Based on manually collected panel data of 74,058 China's industrial establishments and more than 330 thousand observations from CIED and ESR, the authors use a firm-fixed effect model, instrumental variables estimation and heterogeneity tests to identify the environmental externality of economic growth target pressure.

The establishments in cities that meet or slightly exceed the economic growth target experience greater negative externality measured by SO₂ emission intensity. This external effect is more pronounced in regions: with a strict and overweighted target setting; with stronger officials' promotion incentives; with a low degree of marketization; and in firms with great economic importance. The authors identify the underlying mechanisms of dependence on dirty industry and the relaxation of environmental enforcement. And the environmental protection constraints in 2007 mitigate the negative externality.

The paper sheds light on to what extent economic growth target pressure has a negative externality of pollution in China and how this pressure may conflict with environmental protection.

This paper complements prior research on the economic effects of economic growth targets, expands the knowledge on the determinants of establishment-level pollution emission from the perspective of target pressure and provides insight into the environmental externality that results from political factors.

This study aims to examine the relationship between the perceptions of local residents concerning political factors and support for tourism development in the Kashmir region.

Primary data have been collected (n = 650) from the residents of the top five tourist destinations (Pahalgam, Gulmarg, Srinagar, Sonamarg and Kokernag) through a pre-tested questionnaire by multistage sampling method. In presence of non-normal data, the partial least squares structural equation model is applied for analysis. The study is based on the theoretical framework of social exchange theory (SET) and institutional theory of political trust (ITPT).

Results suggest that trust in government, the perceived economic performance of government and level of power are negative determinants of support for tourism development, which nullifies SET for politically disturbed regions.

The results of this study are useful for the local government and tourism institutions in policy formation and fill the vast gap in tourism literature with a theoretical base. This study is also an addition to the existing literature on city tourism for the politically disturbed region.

The demand for retirement villages globally has been increasing due to the rapid growth in the ageing population in recent years. To address the rising challenges in the retirement market, the public–private partnership (PPP) has become a feasible method to develop retirement villages. This paper aims to survey and examine the key success criteria (SC) for using the PPP approach in the retirement village sector.

An empirical questionnaire survey was conducted with experts experienced in international PPP and retirement village. The analysis was conducted using one-way analysis of variance, mean score analysis, Kendall’s coefficient of concordance and factor analysis.

Results indicate that out of the 16 recognized SC, the most significant ones are SC1: “Affordability”, SC11: “Reduced social isolation of residents” and SC14: “Improvement of emotional wellbeing of residents”. Furthermore, results from the factor analysis technique indicate that the 16 SC can be classified into five major factor groupings, and these include SCG1 – “Financial performance of project”; SCG2 – “Adherence to design and technical specifications”; SCG3 – “Adherence to local council/authority’s environmental health and socio-economic requirements”; SCG4 – “Social inclusion and risk management”; and SCG5 – “Advancement in emotional wellbeing and physical health of residents”.

The study will sufficiently assist retirement village stakeholders, retirement village project participants and related government authorities of the best measures to put in place to maintain the sustainable development of the global retirement village market.

Village-owned enterprises, in this study called Badan Usaha Milik Desa (BUMDes), are rural communities economic empowerment program developed by the Indonesian Government to encourage the growth of rural entrepreneurship by using the potential of locally owned resources. However, the implementation and effect of the BUMDes program are questionable. Thus, this study aims to investigate the role of BUMDes in encouraging rural entrepreneurship and strengthening rural economic development. In addition, this study also explores challenges in implementing the BUMDes program.

This study uses a qualitative method with a case study approach. Data were obtained through in-depth interviews using purposive sampling techniques to key people in management at five BUMDes in Garut Regency, West Java, Indonesia, which have successfully implemented the BUMDes program.

The findings of this study indicate that BUMDes are proven to encourage rural entrepreneurship with the dimensions of exploration and empowerment, capacity building and the support and involvement of all stakeholders. BUMDes were established in accordance with government policies based on the village discussion process as the culture of the Indonesian people by involving elements of the village government, associations and the community. However, the challenges in implementing BUMDes are still faced by managers including implementation and regulatory mismatches, lack of qualified human resources and lack of synergy between the village government and BUMDes.

In this study, the development of a local economic empowerment program as a driver of rural entrepreneurship is carried out in the Indonesian context. In addition, based on the unique nature of case studies, making this study can only be implemented in cases that have similar characteristics. Therefore, in the context of other countries, it can be done by modifying the results obtained based on the conditions and potential of each region.

Although recognition of entrepreneurship is one of the main determinants of rural economic development, empirical research in this area is relatively rare. Thus, this study adds a new perspective on the BUMDes program as an effort to grow rural entrepreneurship.

Single-party regimes increasingly use Subnational Performance Assessments (SPAs) – rankings of provinces and districts – to improve governance outcomes. SPAs assemble and publicize information on local government performance to facilitate monitoring and generate competition among officials. However, the evidence are sparse on their effects in this context. The authors argue that built-in incentive structures in centralized single-party regimes distort the positive impact of SPAs.

The staggered rollout of the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) created a natural experiment. Due to 2010 budget constraints, the first iteration of the PAPI survey covered only 30 of Vietnam’s 63 provinces before covering all in 2011. The PAPI team used matching procedures to identify a statistical twin for each province before randomly selecting one from each pair. The authors use randomization inference to compare the outcomes of these control and treatment groups in 2011.

Exposure to PAPI helped improve almost all aspects of governance; however, significant evidence of prioritization bias exist. The positive effects only persisted for the dimension of administrative procedures, which was the one area of governance that was prioritized by the central government at the time. Other dimensions only registered short-term effects.

Our study provides an examination of the impact of SPAs in a single-party regime context. In addition, the authors leverage the natural experiment to identify information effects causally. The authors also look past short-term effects to compare outcomes for five years after the treatment occurred.

Considering the differences between rural and urban spaces, through the theoretical framework developed, the purpose of this paper is to uncover and rationalize the differences between rural and urban new ventures in terms of the environment surrounding the new venture, their general characteristics (e.g. sector, size) and export/economic performance.

The theoretical framework is empirically assessed resorting to exploratory statistical analysis based on data collected from a questionnaire survey responded by 408 new ventures headquartered in Portuguese business incubators and science parks. The data collected were treated with the Software Package for the Social Sciences.

The results evidence that rural and urban new ventures differ in terms of generic characteristics, namely sector, size and collaborators’ human capital. Additionally, they differ concerning export and economic performance as well in relation to the perception of the municipality support.

Albeit the present study is mainly exploratory, it constitutes a stepping stone for future research into the differences between rural and urban new ventures regarding their export and economic performance determinants.

The present study innovatively contributes to uncover the role of rural and urban context in entrepreneurship and adds to the scanty empirical literature in the area.