Interlinkages between Government Resources Management, Environmental Support, and Good Public Governance. Advanced Insights from the European Union

Gratiela Georgiana Noja,Mirela Cristea,Eleftherios Thalassinos,Marta Kadłubek

doi:10.3390/resources10050041

Gratiela Georgiana Noja, Mirela Cristea + Show 2 more

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https://doi.org/10.3390/resources10050041

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Abstract

Good governance requires efficiency and effectiveness in public sector management, a sound legal framework, enhanced coordination, credibility, and transparency of the actions that support financial stability. Connecting these actions, there are significant interlinkages between government spending management and economic development. The research conducted within this paper is set to assess the overall relationships within general government spending management, with a keen focus on government support for environmental protection and good public governance at the European Union (EU) level. The study investigates the cumulative effects of good public governance dimensions on economic welfare and poverty lessening. The dataset covers the period 1995–2017, and the methodological credentials are based on the structural equation modelling technique. The main results indicate that not only does government expenditure (including environmental support) shape good public governance, but the enhancements in good governance dimensions also have important spillovers on government spending regarding significant bidirectional connections. As for the overall implications, the estimations show that only general government expenditure has induced welfare increases, while environmental support does not generate the same positive effects. Ultimately, the all-embracing impact of considered governance dimensions is beneficial, leading to a downsizing of poverty within the EU.

Highlights

The concept of “governance”, as introduced by the World Bank [1], illustrates how the government manages to accomplish its actions within society to support economic and social development
Simultaneous Equation Models (SEM) modelsextent processed to test the first hypothesis, to examine whether and spending(both (bothgeneral general and share dedicated to protecting extent government government spending and thethe share dedicated to protecting the en-the extent government spending affects good public governance (GPG), were estimated using affects good public governance (GPG), were estimated using thethe
The advances suggested by this research show the decisive importance of public administration overheads and good public governance for sustainable economic development at the European Union (EU) level

Summary

Introduction

The concept of “governance”, as introduced by the World Bank [1], illustrates how the government manages to accomplish its actions within society to support economic and social development. Given the differences between countries regarding the wider areas of government quality [2,3], diverse strands of thoughts have demonstrated the importance of good public governance, rational public expenditure, efficient allotment of public financial resources, and targeted measures for increased economic welfare. These credentials are even more important nowadays in the management of the global public health crisis brought about by the Covid-19 pandemic and associated economic risks. A keen significance of the research performed across time led to building up specific composite indicators to measure public governance dimensions, “namely, the practices and activities of public authorities conducted by their institutions” [4] (p. 6)

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