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1 – 10 of over 3000Sandra Matos, Susana Jorge and Patrícia Moura e Sá
This paper aims to propose a tool to assess local public expenditure effectiveness based on a framework of alignment between outputs, outcomes and impacts – the Index of Municipal…
Abstract
Purpose
This paper aims to propose a tool to assess local public expenditure effectiveness based on a framework of alignment between outputs, outcomes and impacts – the Index of Municipal Expenditure Effectiveness (IMEE). This index is composed of a set of indicators associated with the typology of local expenditure.
Design/methodology/approach
The paper describes the methodological approach used in the development of the Index, considering the insights from the literature review and the opinion of a panel of experts. The indicators of outcomes and social impacts that are part of the Index are intentionally aligned with the UN Sustainable Development Goals (SDGs) as they provide an essential guide to assess public value creation in the current context. For simplicity purposes, three main components of municipal expenditure were considered, namely Education, Essential Public Services and Local Public Transportation. The Index is then illustrated through a pilot application, using data from five Portuguese municipalities.
Findings
This study argues that measuring the public expenditure effectiveness based on outcome and impact indicators can provide the data needed for local governments to better understand the effects of their activities over time, ultimately assessing their contribution to public value.
Practical implications
Assessing the impact of local spending is important to ensure the best use of public resources. Linking local public expenditures with the 2030 Agenda and the SDGs is a promising avenue to understand up to what extent the application of the public money is contributing to create public value by impacting on citizens’ lives.
Originality/value
The proposed IMEE contributes to addressing a gap identified in public organizations, including local governments, regarding the lack of consideration of expenditure and outcome/impact relationships, and the use of variables to measure long term impacts.
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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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Imene Guermazi and Mohamed Wajdi Gharbi
This paper aims to investigate the relationship between the Kingdom of Saudi Arabia (KSA)’s expenses in the health and social fields and the achievement of sustainable development…
Abstract
Purpose
This paper aims to investigate the relationship between the Kingdom of Saudi Arabia (KSA)’s expenses in the health and social fields and the achievement of sustainable development goals (SDGs) 1 (elimination of poverty) and 3 (good health and well-being). This paper also examines the effects of the COVID-19 pandemic on these expenses and goals.
Design/methodology/approach
This paper observes the public expenses and the targets of the SDGs of KSA during 1981–2022. This paper tests the stationarity of the variables and then uses the ordinary least square model or the autoregressive distributed lag model, depending on the unit root test results. This paper also observes the change in target goals between the two years of the pandemic and the two preceding years.
Findings
The results show the influence of social expenditure on the progress of SDG-1, whereas the impact of health expenditure on SDG-3 is not significant. This paper also proves the impact of the pandemic on public expenses and social SDGs.
Practical implications
This paper attracts the attention of policymakers to the importance of assessing their SDG initiatives and the consequent outcomes. Additionally, this paper documents the initiatives for sustainable development in KSA, an important emerging country. Given the universal nature of the SDGs and the importance of KSA as an economic power with a large youth human capital potential, the findings offer insights applicable beyond KSA and provide valuable lessons for governments worldwide regarding the optimization of public spending for SDG achievement. Moreover, monitoring SDG advancement in this important country helps assess the progress of the the United Nations (UN)’s 2030 Agenda for Sustainable Development. Therefore, This paper helps boost the completion of this agenda and contributes to the bottom-up approach of the UN 2030 Vision, implicating all categories of stakeholders, including the academic community.
Originality/value
This paper furthers the literature on SDG achievement by analyzing the relationship between public expenses and SDGs. This paper contributes to the debate concerning the best methodology suitable for SDG valuation and adds to the few studies using autoregressive tests. Moreover, this paper enriches the scarce studies dealing with emerging countries and reviews the assessment of SDGs in KSA. Additionally, this paper investigates the effect of the COVID-19 pandemic on the assigned resources for SDGs and, consequently, on the related indicator scores.
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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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Asian countries have had persistent unemployment levels. The purpose of this paper is to investigate the impact of government spending on unemployment. Furthermore, this paper…
Abstract
Purpose
Asian countries have had persistent unemployment levels. The purpose of this paper is to investigate the impact of government spending on unemployment. Furthermore, this paper investigates the moderating role of institutional quality on the government spending–unemployment nexus.
Design/methodology/approach
Using data from 35 Asian countries from 2000 to 2022, the dynamic ordinary least squares and fully modified ordinary least squares technique is used to tackle with aforementioned issue. In addition, pooled mean group estimation is applied to verify the robustness of the findings.
Findings
The results show that an increase in government expenditure and better institutions reduce the unemployment rate. Interestingly, the negative impact of government expenditure on unemployment will enhance and intensify with better institutional quality. Furthermore, trade openness and foreign direct investment decrease unemployment in Asian countries. The results are robust to various specifications.
Practical implications
Findings from this study provide important implications for governments. Governments should use public expenditure efficiently and enhance and improve institutional quality to reduce unemployment.
Originality/value
To the best of the author’s knowledge, this study pioneers the investigation of the moderating role of institutional quality in the relationship between government expenditure and unemployment in Asian countries.
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Ruben Bostyn, Laurens Cherchye, Bram De Rock and Frederic Vermeulen
We make use of rich microdata from the Belgian MEqIn survey, which contains detailed information on individual consumption, public consumption inside households, and time use. We…
Abstract
We make use of rich microdata from the Belgian MEqIn survey, which contains detailed information on individual consumption, public consumption inside households, and time use. We explain the observed household behavior by means of a collective model that integrates marriage market restrictions on intrahousehold allocation patterns. We adopt a revealed preference approach that abstains from any functional form assumptions on individual utility functions or intrahousehold decision processes. This allows us to (set) identify the sharing rule, which governs the intrahousehold sharing of time and money, and to quantify economies of scale within households. We use these results to conduct a robust individual welfare and inequality analysis, hereby highlighting the important role of detailed consumption and time use data.
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Martins Iyoboyi, Latifah Musa-Pedro, Okereke Samuel Felix and Hussaina Sanusi
This paper examines the impact of fiscal constraints on education expenditure in Nigeria from 1981 to 2021, using annual time series data.
Abstract
Purpose
This paper examines the impact of fiscal constraints on education expenditure in Nigeria from 1981 to 2021, using annual time series data.
Design/methodology/approach
The study deployed cointegration techniques with structural breaks.
Findings
Cointegration was found between education expenditure, debt servicing (a proxy for fiscal constraint) and associated variables. In both the long and short run, debt servicing negatively and significantly impacts education expenditure. While government revenue has a positive and significant impact on education expenditure in the long and short run, political institution has a negative and significant impact in the long run. Political institution is thus critical to education financing in Nigeria. The impact of debt is positive and significant in the short run, but not significant in the long run. There is a unidirectional causality from debt servicing to education expenditure.
Practical implications
Political institutions are critical towards contracting only productive debts and checkmating the adverse political environment through political will that prioritizes education financing.
Originality/value
The study extends the empirical literature on the fiscal constraint-education expenditure first by investigating fiscal constraint-education expenditure nexus given the institutional environment, and second by extending the methodology using cointegration techniques in the midst of structural breaks.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2022-0682.
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Arnt O. Hopland and Sturla Kvamsdal
There is widespread and long-lasting worry related to the condition of public purpose buildings and public investments. Public buildings make up a huge capital stock and proper…
Abstract
Purpose
There is widespread and long-lasting worry related to the condition of public purpose buildings and public investments. Public buildings make up a huge capital stock and proper maintenance and investments are important for public policy. Notwithstanding, the relevant research literature is fragmented and spread across several fields. The authors take stock of earlier and more recent research and suggest some ideas for future research.
Design/methodology/approach
The authors summarize the relevant literature and discuss implications of various theoretical assumptions and empirical findings for maintenance and investment strategies.
Findings
A better understanding of the role of public facilities in public service provision is important. Relevant topics for further research are the impact of technological changes, both in buildings and service provision, economic issues including macroeconomic shocks and trends that influence public funding and demand for public services, and advancing maintenance scheduling models to consider a portfolio of facilities. Further, the empirical literature suffers from a lack of relevant data to gauge both the condition of public facilities and their impact on public services.
Originality/value
There is widespread worry that poor facilities adversely impact public services, but the size and significance of this impact are an open question. This paper contributes by taking stock of the existing research on public facilities, maintenance, and investments, and suggest ideas for further work.
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The Great Recession that began around 2008 hit hard on Greece and Italy. During a period of extreme economic distress, the two countries suffered the loss of government…
Abstract
Purpose
The Great Recession that began around 2008 hit hard on Greece and Italy. During a period of extreme economic distress, the two countries suffered the loss of government performance and citizen trust in government. The purpose of this study is to describe how government performance and citizen trust in government had been altered in the context of the Great Recession.
Design/methodology/approach
This study conducts a case study on France and Germany. These in-depth case studies afford a lens for diagnosing how the Great Recession affected macro and micro-performance in practice.
Findings
Comparative case studies of Greece and Italy provide evidence that government performance in Greece and Italy was diminished to a large extent as a result of the Great Recession. In addition, citizen trust in both countries was impaired during the Great Recession period.
Social implications
It is a matter of grave concern how the government responds to crises. During the crisis, some states implemented stringent austerity measures. This case brings out the careful point that austerity measures could diminish government performance as well as the state’s fundamental potential.
Originality/value
Due to its significance, the Great Recession has been widely investigated, with the explanations often concentrating on economic and political repercussions. Nonetheless, how the economic crisis transformed into public administration and policy has largely gone unheeded. The case studies of Greece and Italy newly identify and help to explain how the Great Recession contributes to governments and citizens in a multitude of aspects.
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