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1 – 10 of over 1000Nitin Arora and Shubhendra Jit Talwar
The fiscal outlay efficiency matters when the performance-based allocation of funds is made to state governments by the central government in a federal structure of an economy…
Abstract
Purpose
The fiscal outlay efficiency matters when the performance-based allocation of funds is made to state governments by the central government in a federal structure of an economy like India. Also the efficiency cannon of public expenditure is a key aspect in the field of public economics. Thus, a study to evaluate the efficiency in fiscal outlay of Indian states has been conducted.
Design/methodology/approach
The paper offers a three divisions–based paradigm under Network Data Envelopment Analysis framework to compare the performance of fiscal entities (say Indian state governments) in converting available fiscal resources into desired short-run and long-run growth and development objectives. The network efficiency score has been taken as a measure of the quality of fiscal outlay management that is trifurcated into divisional efficiencies representing budgeting process, fiscal outlay efficiency process and fiscal outlay effectiveness process.
Findings
It has been noticed that the states are under performing in achieving short-run growth targets and so the efficiency process division has been identified a major source of fiscal under performance. Suboptimum allocation of fiscal expenditure under various heads within the fiscal resources, as explained under budgeting process, is another major cause of fiscal under performance.
Practical implications
The study purposes a three divisions–based paradigm that takes into account efficiency of a state in (1) planning budget, (2) achieving short-run growth targets and (3) achieving long-run development targets. These three stages are named as budgeting process efficiency, fiscal outlay efficiency and fiscal outlay effectiveness, respectively. Therefore, a new paradigm called BEE paradigm is proposed to evaluate performance of fiscal entities in terms of fiscal outlay efficiency.
Originality/value
In existing literature on measuring efficiency of public expenditure, the public sector outputs have been made as function of fiscal expenditure as input treating the said outlay as an exogenous variable. In present context, the fiscal expenditure has been treated endogenous to the budgeting process. A high inefficiency on account of budgeting process supports this treatment too.
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Afees Salisu and Douglason Godwin Omotor
This study forecasts the government expenditure components in Nigeria, including recurrent and capital expenditures for 2021 and 2022, based on data from 1981 to 2020.
Abstract
Purpose
This study forecasts the government expenditure components in Nigeria, including recurrent and capital expenditures for 2021 and 2022, based on data from 1981 to 2020.
Design/methodology/approach
The study employs statistical/econometric problems using the Feasible Quasi Generalized Least Squares approach. Expenditure forecasts involve three simulation scenarios: (1) do nothing where the economy follows its natural path; (2) an optimistic scenario, where the economy grows by specific percentages and (3) a pessimistic scenario that defines specific economic contractions.
Findings
The estimation model is informed by Wagner's law specifying a positive link between economic activities and public spending. Model estimation affirms the expected positive relationship and is relevant for generating forecasts. The out-of-sample results show that a higher proportion of the total government expenditure (7.6% in 2021 and 15.6% in 2022) is required to achieve a predefined growth target (5%).
Originality/value
This study offers empirical evidence that specifically requires Nigeria to invest a ratio of 3 to 1 or more in capital expenditure to recurrent expenditure for the economy to be guided on growth.
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Hacer Simay Karaalp-Orhan, Nurgül Evcim and Fatih Deyneli
The aim of this study is to analyze which socioeconomic factors (economic, demographic, and political) most commonly affect the social expenditure of the European Union (EU) and…
Abstract
Purpose
The aim of this study is to analyze which socioeconomic factors (economic, demographic, and political) most commonly affect the social expenditure of the European Union (EU) and Organization for Economic Co-operation and Development (OECD) countries.
Design/methodology/approach
A panel data fixed-effects model is employed for 34 OECD and 23 EU countries between 2000 and 2020.
Findings
Results indicate that, in all country groups, economic factors have the most significant influence on social expenditures, with income being the primary determinant, particularly in EU countries. The negative impacts of unemployment and inflation underscore the importance of counter-cyclical measures adopted by countries to maintain stability in their social expenditures. The most influential demographic factor is found as the old-age-dependency ratio. While the rule of law affects social expenditure positively, government effectiveness and female labor force participation affect it negatively. The positive effect of Konjunkturforschungsstelle (KOF) indexes shows the globalization effect, which can be attributable to the compensation hypothesis.
Practical implications
Governments enforce inclusive and sustainable policies to boost economic activities and GDP, thus combating inflation and unemployment and regulating the labor market and socioeconomic problems about aging populations and women’s economic participation to control social expenditures. The rule of law and institutional quality will also boost economic growth.
Originality/value
This study focuses on the effects of social expenditures in a broader view within the framework of the three main factors (economic, demographic, political) and attempts to determine the key factors that account for the differences in social expenditure between the OECD and EU countries.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0384
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The unsustainable public debt of most African economies adversely affects their economic growth and stability. This study aims to explore the influence of cross-country indicators…
Abstract
Purpose
The unsustainable public debt of most African economies adversely affects their economic growth and stability. This study aims to explore the influence of cross-country indicators of governance from African countries on public debt accumulation.
Design/methodology/approach
The study deployed a quantitative research design technique. Secondary data was used in this study. The frequency of the data is annual, and it is available from 1996 to 2022 for 48 countries in Africa. The study deployed the system generalized method of moments for the estimation.
Findings
The study finds that countries with high regulatory quality standards, control corruption and ensure effective governance accumulate less government debt while countries that abide by the rule of law instead accumulate more government debt. The study also finds that economic growth and government revenue reduce government gross debt while government expenditure and investments increase public debt.
Research limitations/implications
Due to data unavailability, other factors which are likely to influence government debt accumulation were not included in the study as control variables. This is the limitation of the study.
Social implications
African governments should strive to maintain high regulatory quality standards through the formulation and implementation of sound policies and regulations that permit and promote private sector development, and ensure quality and accountability of public and civil services. Governments are also urged to control corruption and enact good laws so that the enforcement of these laws will not worsen the risk of becoming debt-distressed.
Originality/value
Recent studies on governance and public debt were focused on the Arabian Gulf countries, countries of the Middle East and North Africa (MENA) region and a combination of high and low-income countries. This study scrutinizes exclusively the effects of the quality of governance indicators on public debt accumulation, in the context of Africa.
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Country comparative studies especially in Africa on public procurement reforms toward financial control and accountability of public expenditure are limited. Meanwhile, these…
Abstract
Purpose
Country comparative studies especially in Africa on public procurement reforms toward financial control and accountability of public expenditure are limited. Meanwhile, these kinds of studies have potential for providing useful insights on how value for money through public procurement is being ensured across Africa. This paper attempts to provide this. The purpose of this paper is to highlight several policy recommendations for public management aimed at improving public procurement and public financial management (PFM) systems in Africa.
Design/methodology/approach
The paper adopts a qualitative case study using secondary data drawn from Global Integrity Index (GII) of the Transparency International and the World Bank’s Country Policy and Institutional Assessments databases to investigate variables that influence public procurement practices in three purposively selected African countries. The comparative approach for presenting some of the experiences of countries in public procurement methods is used in this paper.
Findings
The findings suggest three main variables, namely, government structure and economic variables, complicated by socio-cultural values interact to influence public procurement and PFM systems in the case study countries.
Research limitations/implications
Data for the GII indicators used were only available from 2013, which restricted the discussion of those indicators to a short span (2013–2015).
Social implications
The socio-cultural milieu within which public procurement takes place has implications for how governance structures function to deliver value-for-money public procurement.
Originality/value
This study adds value by comparing three countries within Africa to reveal common variables which influence public procurement and PFM systems.
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Toan Khanh Tran Pham and Quyen Hoang Thuy To Nguyen Le
The purpose of this study is to explore the relationship between government spending, public debt and the informal economy. In addition, this paper investigates the moderating…
Abstract
Purpose
The purpose of this study is to explore the relationship between government spending, public debt and the informal economy. In addition, this paper investigates the moderating role of public debt in government spending and the informal economy nexus.
Design/methodology/approach
By utilizing a data set spanning from 2000 to 2017 of 32 Asian economies, the study has employed the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). The study is also extended to consider the marginal effects of government spending on the informal economy at different degrees of public debt.
Findings
The results indicate that an increase in government spending and public debt leads to an expansion of the informal economy in the region. Interestingly, the positive effect of government spending on the informal economy will increase with a rise in public debt.
Originality/value
This study stresses the role of government spending and public debt on the informal economy in Asian nations. To the best of the authors' knowledge, this study pioneers to explore the moderating effect of public debt in the public spending-informal economy nexus.
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The role institutional quality plays in the rising pace of globalization and its associated health effects remain unclear in the literature. This study, therefore, empirically…
Abstract
Purpose
The role institutional quality plays in the rising pace of globalization and its associated health effects remain unclear in the literature. This study, therefore, empirically examined the moderating role of institutional quality on the globalization-health outcomes nexus in Nigeria, a country with a relatively weak health system.
Design/methodology/approach
The study employed Dynamic Ordinary Least Square (DOLS) to estimate the empirical models. The Fully Modified Ordinary Least Square (FMOLS) and Canonical Cointegration Regression (CCR) techniques were thereafter used to check the consistency and robustness of our results. Annual time-series data spanning from 1984 to 2020 were sourced from the World Development Indicator, KOF Globalization Index, International Countries Risk Guide (ICRG) and Central Bank of Nigeria Statistical Bulletin databases.
Findings
The results revealed that overall globalization and its three dimensional components (economic, political and social globalization) adversely affect life expectancy in their separate models, but increased life expectancy significantly after their interaction with government effectiveness. Also, real GDP, health aids, government recurrent health expenditure are other determinants of life expectancy in Nigeria.
Practical implications
The Nigerian government should put in place appropriate mechanisms directed toward building and sustaining government effectiveness. This will help mitigate the negative effects of globalization and utilize its net positive benefits to improve life expectancy in Nigeria.
Originality/value
The research is the first to comprehensively examine the moderating impact of institutional quality on the nexus between overall globalization as well as its three dimensional components (economic, political and social) on health outcomes in Nigeria.
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Mustapha Immurana, Kwame Godsway Kisseih, Ibrahim Abdullahi, Muniru Azuug, Ayisha Mohammed and Toby Joseph Mathew Kizhakkekara
Bipolar and depression disorders are some of the most common mental health disorders affecting millions of people in low-and middle-income countries, including those in Africa…
Abstract
Purpose
Bipolar and depression disorders are some of the most common mental health disorders affecting millions of people in low-and middle-income countries, including those in Africa. These disorders are therefore major contributors to the burden of diseases and disability. While an enhancement in income is seen as a major approach towards reducing the burden of these disorders, empirical evidence to support this view in the African context is lacking. This study therefore aims to examine the effect of per capita income growth on bipolar and depression disorders across African countries.
Design/methodology/approach
The study uses data from secondary sources comprising 42 African countries over the period, 2002–2019, to achieve its objective. The prevalence of bipolar and major depressive disorders (depression) are used as the dependent variables, while per capita income growth is used as the main independent variable. The system Generalised Method of Moments regression is used as the estimation technique.
Findings
In the baseline, the authors find per capita income growth to be associated with a reduction in the prevalence of bipolar (coefficient: −0.001, p < 0.01) and depression (coefficient: −0.001, p < 0.1) in the short-term. Similarly, in the long-term, per capita income growth is found to have negative association with the prevalence of bipolar (coefficient: −0.059, p < 0.01) and depression (coefficient: −0.035, p < 0.1). The results are similar after robustness checks.
Originality/value
This study attempts at providing the first empirical evidence of the effect of per capita income growth on bipolar and depression disorders across several African countries.
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Olumide Olaoye, Segun Thompson Bolarinwa and Muhammad Yaseen
The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment…
Abstract
Purpose
The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment in poverty reduction in a panel of 40 sub-Saharan African countries.
Design/methodology/approach
For robustness, the study adopts a variety of estimation techniques. These include the fixed effect (within) regression model, the two-step system generalised method of moments (GMM) and the pooled OLS with Driscoll-Kraay robust standard errors to account for the well-known problems of endogeneity, heterogeneity and cross-sectional dependence inherent in panel data.
Findings
The empirical results show that the reducing impact of public investment on poverty is marginal, while private investment has a significant reducing impact on poverty. The study also found that access to social services, such as water and sanitation, and credit are important determinants of investment in SSA. The research and policy implications are discussed.
Originality/value
The study investigated the separate effect of private and public investments on poverty in SSA, unlike the existing studies that adopted total investment.
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Victoria Abena Nutassey, Bomi Cyril Nomlala and Mabutho Sibanda
This study assessed the role of political institutions in the relationship between economic institutions and public debt in Sub-Saharan Africa.
Abstract
Purpose
This study assessed the role of political institutions in the relationship between economic institutions and public debt in Sub-Saharan Africa.
Design/methodology/approach
Based on data availability, the study was done for 40 Sub-Saharan African countries from 2010 to 2019 employing generalized method of moment.
Findings
The authors documented a negative and significant relationship between economic institutions and public debt as well as a negative and significant effect of political institutions on public debt in SSA. Also, the study recorded that political institutions play a negative and significant role in the economic institutions-public debt nexus in Sub-Saharan Africa. However, a threshold of 3.691 is given when it comes to the role of political institutions in the association between government spending and public debt nexus in SSA.
Research limitations/implications
The authors failed to take certain indicators of economic institutions, such as freedom to trade internationally, the size of government and legal system and property into consideration.
Practical implications
The authors suggest that democracy is necessary for boosting economic institutions-induced public debt reduction in SSA.
Originality/value
The novelty of this study is evident in two ways: first, the authors assessed the relationship between economic institutions and public debt in SSA using novel measures such as government integrity, tax burden and government spending from the Heritage Foundation instead of traditional institution measures from World Governance Indicators used by earlier studies. The authors further contribute to literature by being the first to consider the foundational role of political institutions in employing economic institutions to fight high public debt in SSA. Again, the authors included the threshold at which political institutions can cause economic institutions to have a desired impact on public debt in SSA.
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