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1 – 10 of 117Decentralization has profound implications for many health systems. This study investigates the effect of health system decentralization in Organization for Economic Co-operation…
Abstract
Purpose
Decentralization has profound implications for many health systems. This study investigates the effect of health system decentralization in Organization for Economic Co-operation and Development (OECD) countries on public health security capacity and health service satisfaction.
Design/methodology/approach
Multiple linear regression analyses were employed for variables related to the level of health security capacity and satisfaction with the healthcare system while controlling for all socio-demographic variables from the European Social Survey, including over 44,000 respondents from 25 OECD countries. The Health Systems in Transition series of countries were used for assessing the decentralization level.
Findings
The result of multiple linear regression analyses showed that the level of decentralization in health systems was significantly associated with higher health security capacity (ß-coefficient 3.722, 95% confidence interval (CI) [3.536 3.908]; p=<0.001) and health service satisfaction (ß-coefficient 1.463, 95% CI [1.389 1.536]; p=<0.001) in the study. Countries with a higher level of decentralization in health policy tasks and areas were significantly likely to have higher health services satisfaction, whereas this satisfaction had a significant negative relation with the lower level of decentralization status of secondary/tertiary care services in OECD countries (ß-coefficient −5.250, 95% CI [−5.757–4.743]; p = 0.001).
Originality/value
This study contributes to a better understanding of the extent to which decentralization of health services affects public health safety capacity and satisfaction with health services, whereas the level of decentralization in OECD countries varies considerably. Overall, the findings highlight the importance of public health security and satisfaction with health care delivery in assessing the effects of decentralization in health services.
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This paper analyses the degree of political decentralisation and its relation to the local councils in Tanzania. It explores the institutional and political set-up of the local…
Abstract
Purpose
This paper analyses the degree of political decentralisation and its relation to the local councils in Tanzania. It explores the institutional and political set-up of the local councils originating from the degree of political decentralisation and how it influences the tension between the bureaucrats and local politicians.
Design/methodology/approach
Qualitative approach by a comparative case study is adopted to investigate the phenomenon in two local governments in Tanzania. The data were collected through interviews with 37 senior local government officials and eight focus group discussions with 48 administrators and councillors.
Findings
The findings indicate that the two local governments are subjected to a similar political system guided by similar rules and guidelines from the central government bureaucracy for implementing the party manifesto and central government priorities. Thus, the local politicians have little room for negotiation in adopting local agenda to reflect the preferences of the local community. Any attempt to challenge this status quo creates political tensions between bureaucrats and the administrators.
Originality/value
The findings provide invaluable insights to different stakeholders such as political scientists, government officials, and policymakers with interests in research or practice of political decentralization and political-administrative relation.
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John Paul Clifford, Justin Doran, Frank Crowley and Declan Jordan
This article examines the links between average city size, fiscal decentralisation, and national economic growth in 33 Organisation for Economic Co-operation and Development…
Abstract
Purpose
This article examines the links between average city size, fiscal decentralisation, and national economic growth in 33 Organisation for Economic Co-operation and Development (OECD) countries.
Design/methodology/approach
The data in this paper comprise an unbalanced panel dataset which contains economic growth indicators, average city size, fiscal decentralisation indicators and control variables in 33 OECD member countries from 1975 to 2015 in five-year intervals. Fixed-effects (FE) estimators are used for the analysis.
Findings
This research finds i) countries with larger weighted average city sizes have higher economic growth, ii) countries with greater fiscal decentralisation have higher economic growth, but iii) countries with larger weighted average city sizes with greater decentralisation have lower rates of economic growth.
Originality/value
The research highlights the importance of agglomerations and decentralised governance and management for economic growth. While the findings are consistent with previous evidence that larger city sizes and fiscal decentralisation are separately associated with higher rates of economic growth, the authors find countries which have larger cities and greater fiscal decentralisation experience lower rates of economic growth highlighting a need for caution on decentralisation agendas in such cases. The implications of this suggest policymakers should proceed with caution on decentralisation agendas in countries with large cities.
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Zhaoqiang Zhong and Zhiguang Chen
This paper aims to explore the impact of business environment on high-quality economic development (HQED) and clarify the role of technological innovation and government…
Abstract
Purpose
This paper aims to explore the impact of business environment on high-quality economic development (HQED) and clarify the role of technological innovation and government intervention in this relationship.
Design/methodology/approach
Based on China’s provincial panel data from 2010 to 2019, this paper adopts the system generalized method of moments to empirically analyze the influential mechanism and heterogeneity of the business environment on HQED. Furthermore, the authors construct a dynamic panel threshold model to test the threshold effect of government intervention.
Findings
The results indicate that optimizing the business environment can significantly promote HQED, technological innovation plays a partial mediating role in the impact of business environment on HQED, mainly by enhancing the intensity of innovation input and increasing innovation output to facilitate HQED. Government intervention can regulate the impact of business environment on HQED, and there is a double threshold effect, and it possesses an inverted U-shaped feature of first promoting and then inhibiting.
Originality/value
This paper examines the influence path of business environment on HQED from the perspective of technological innovation and government intervention, filling the gap in the study of provincial business environment. Moreover, the conclusions furnish a theoretical basis for optimizing the business environment and facilitating the HQED in China.
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This study aims to investigate the external effect of the economic growth target pressure of local governments on establishment-level SO2 emissions.
Abstract
Purpose
This study aims to investigate the external effect of the economic growth target pressure of local governments on establishment-level SO2 emissions.
Design/methodology/approach
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.
Findings
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.
Practical implications
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.
Originality/value
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.
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Anna Białek-Jaworska and Agnieszka Krystyna Kopańska
This paper aims to determine whether local governments (LGs) use non-consolidated municipally owned companies (MOCs), excluded from public sector entities and, consequently, from…
Abstract
Purpose
This paper aims to determine whether local governments (LGs) use non-consolidated municipally owned companies (MOCs), excluded from public sector entities and, consequently, from sub-national debt to avoid fiscal debt limits. This paper contributes to the literature by analysing the fiscal debt rule’s impact on the off-budget municipal activities in total and separate in different types of local government units.
Design/methodology/approach
This paper uses difference-in-differences and the system general method of moments model with the Blundell–Bond estimator for dynamic panel data analysis of MOCs owned by 866 Polish municipalities in 2010–2018.
Findings
This paper shows that the MOCs’ revenues support limited local public debt capacity by indebtedness restrictions imposed on municipalities in 2014. As a result, less indebted municipalities have higher off-budget revenues. The tightening of fiscal rules related to sub-sovereign indebtedness increased off-budget activities, but that effect is much stronger in rural and rural–urban municipalities than in urban municipalities and big cities.
Originality/value
This paper contributes to the literature by exploring the fiscal debt rule’s impact on the off-budget municipal activities in total and separate in different types of local government units. In this paper, the authors combine theories relating to private and public finance; this is a novel approach and one that is also necessary – as, in fact, the worlds of public and private actors intersect – as exemplified by the existence of MOC.
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The COVID19 crisis has thrown wide open the debate on Europe’s Economic and Monetary Union’s (EMU) future. Next Generation EU (NGEU) has broken the stalemate over a central fiscal…
Abstract
Purpose
The COVID19 crisis has thrown wide open the debate on Europe’s Economic and Monetary Union’s (EMU) future. Next Generation EU (NGEU) has broken the stalemate over a central fiscal capacity. The open question is whether NGEU is a one-off or a first step. The suspension of the Stability and Growth Pact has given new urgency to the debate on reforming EMU’s fiscal rules.
Design/methodology/approach
There is no debate as yet about how these two prospects relate to each other. This paper argues that a permanent fiscal capacity and revised rules should be seen as alternatives.
Findings
This study makes two claims: first, a fiscal capacity renders a reformed pact unnecessary and second, that is an optimal solution politically. A fiscal capacity would provide an efficient asymmetric shock absorber and therefore reduce the need for pre-emptive action against negative cross-border externalities. It would also provide an abundant supply of an EU-wide safe asset around which to structure the EU’s financial system, thus rendering unnecessary the backstopping of member states' debts.
Originality/value
This would restore democratic accountability while eliminating moral hazard and enforcement problems.
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The purpose of this study is to assess reasons behind experienced challenges by local government authorities (LGAs) in operating Women, Youth and People with Disabilities Fund…
Abstract
Purpose
The purpose of this study is to assess reasons behind experienced challenges by local government authorities (LGAs) in operating Women, Youth and People with Disabilities Fund (WYDF) in Tanzania. Specifically, it assesses the reasons behind failures to recover loan by LGAs and groups of Women, Youth and People with Disability (WYPWD).
Design/methodology/approach
The qualitative approach was recruited in this study involving Tunduru District Council as a case study. Data were collected through Interviews, Focus Group Discussion and Documentary Review. Interviews were administered to Community Development Officers (CDOs) while FGD to WYPWD groups. Reviewed documents include laws, regulations and publications on social development funds. Data were analyzed using content analysis approach and backed up by quotations during presentation.
Findings
Failures to recover loans from beneficiaries is attributed to weaknesses of both groups and LGAs. LGAs suffer from lack of capability to manage the fund, poor governance practices and misuse of public funds, and groups lack awareness of the fund's goals.
Research limitations/implications
Due to experienced challenges, efforts by groups and LGAs to reclaim loan have been unsuccessful, which has prevented the fund from achieving its goals.
Practical implications
The central government should concentrate on ongoing LGAs capacity building so that they can successfully handle the fund, it is advised for improvement. Again, LGAs should establish an information system linked with groups to track their projects implementation. Once more, groups should be informed about the purpose of creating the fund and the advantages of the loan to them and to local economic development (LED). Furthermore, groups need entrepreneurial abilities to be able to participate in businesses that they can manage. Moreover, organizations should receive ongoing education so that they may repay the loan voluntarily.
Social implications
Community awareness on the aims of the fund should be provided to impact LED.
Originality/value
Recommendations given can be applied by other developing countries struggling to uplift citizens economically through social development funds.
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Early evidence suggests that coronavirus disease 2019 (COVID-19) caused a sharp deterioration in fiscal accounts worldwide. This paper empirically assesses the fiscal impact of…
Abstract
Purpose
Early evidence suggests that coronavirus disease 2019 (COVID-19) caused a sharp deterioration in fiscal accounts worldwide. This paper empirically assesses the fiscal impact of previous pandemics and epidemics.
Design/methodology/approach
Using a large sample of 170 countries from 2000 to 2018, this study relies on Jordà's (2005) local projection method to trace pandemics' short- to medium-term dynamic impact on several fiscal aggregates.
Findings
This paper shows that (qualitatively) similar responses to those observed more recently with COVID-19 have characterized the effects of previous pandemics. While the fiscal effect has been economically and statistically significant and persistent, it varies; pandemics affect government expenditures more strongly than revenues in advanced economies, while the converse applies to developing countries. The author also finds that asymmetric responses depend on whether a country is characterized as a chronic fiscal surplus or deficit type. Another factor that generates an asymmetric fiscal response is the prevailing phase of the business cycle the economy was in when the pandemic shock hits.
Research limitations/implications
This paper's findings provide a lower bound to what the current COVID-19 pandemic will inflict on countries’ fiscal situation. That said, the set of pandemics and epidemics used in this paper are geographically more concentrated and did not affect all countries in such a systemic and synchronized manner as did COVID-19 more recently.
Originality/value
This is the first paper to explore the fiscal side of this type of health-related shocks, as most of the literature has focused on the more traditional macroeconomic effects.
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Komla D. Dzigbede, Rahul Pathak and Sombo Muzata
Over the years, public sector reforms in emerging economies have focused on improving national budget systems and financial management practices to promote sustainable…
Abstract
Purpose
Over the years, public sector reforms in emerging economies have focused on improving national budget systems and financial management practices to promote sustainable development. In the context of the COVID-19 crisis, this article examines whether the strength or effectiveness of national budget systems and related financial management practices moderates the impact of fiscal policy measures on economic recovery and resilience.
Design/methodology/approach
The article uses bivariate correlations and difference-in-difference analyses to examine the relationship between budget system effectiveness, government stimulus measures and forecasts of economic recovery and resilience. The analysis uses data from the Public Expenditure and Financial Accountability (PEFA) program, International Monetary Fund (IMF) and World Bank.
Findings
The article finds that estimates of economic recovery and resilience are higher in countries with more reliable budget processes and more transparent public finances. Also, the strength or effectiveness of the budget system before the pandemic appears to moderate the impact of government stimulus measures on economic recovery and resilience over a medium-term forecast horizon.
Research limitations/implications
This is a prospective analysis based on economic forecasts from the IMF, which are subject to change in the coming years. In addition, the analysis uses subjective budget system indicators, which present measurement challenges that often influence this area of research. Better comparative data in the future, for example, large administrative datasets, will enable researchers to explore these issues with less estimation bias.
Practical implications
The findings are relevant for policymakers and budget officials in developing countries in Africa who are engaged in plans to improve national budget systems and enhance resilience to crises, such as the COVID-19-induced economic crisis. The findings also have implications for developing countries beyond Africa with similar economic and fiscal conditions.
Social implications
The findings have implications for economic and budgetary planning for the social sector as well as the efficient delivery of public services in developing countries. Public managers have a critical role to play in adapting national budget systems and financial management reforms within complex and evolving economic circumstances even after the coronavirus pandemic.
Originality/value
The authors use novel and latest data on country responses to the COVID-19 pandemic as well as medium-term economic forecasts to examine the relationship between national budget systems and post-pandemic economic recovery and resilience in the African context. Previous research has only addressed these issues in the context of industrialized countries, and a limited number of empirical studies examine these relationships. The findings also have significant value for policymakers outside Africa who are facing similar challenges related to the coronavirus pandemic.
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