Fiscal Capability Research Articles

Local government fiscal squeeze, environmental regulation and firms’ polluting behavior: Evidence from China

Government fiscal capability is closely related to the environmental regulation policy, but few studies have considered the effect of local government fiscal squeeze on firms' environmental decisions. Adopting a sample of Chinese industrial firms between 2002 and 2012, we implement a difference-in-differences (DD) method to examine the influence of fiscal squeeze on firms’ polluting behavior. We find that fiscal squeeze leads to more sulfur dioxide emissions from firms. This effect is only significant on large-scale firms, private firms, firms whose taxes are collected by the local taxation bureaus (LTB), and firms in heavily polluting sectors. We further investigate the potential mechanism and find that, resulting from the fiscal squeeze, local governments seek to expand their tax base by relaxing environmental regulations. The results suggest that keeping fiscal revenue stable is conducive to improving air quality.

Importance of the Size of Local Government in Avoiding the Fiscal Distress – Empirical Evidence on Communes in Poland

Theoretical background: In the literature on finance there are findings which examine reasons for the fiscal distress of units of the public sector, including local governments. However, this distress might be differently defined. Therefore, it determines both the approach to identify this phenomenon and the types of explanatory variables. Nevertheless, in the field of the business sector in the econometric models concerning the financial distress the size of the unit is considered. In this case there are also some possibilities to apply the correct proxy variable. This results from the fact that the size of local government might determine its fiscal capability as well as the level and structure of expenditures, which affect fiscal distress. Purpose of the article: The aim of this paper is to examine the influence of the size of the local government on the probability of the decrease of the exposure to the fiscal distress. Research methods: The author reviewed the literature in the field of the fiscal distress and introduced a multi-criteria decision analysis as well as a logistic regression modelling to examine this. The research procedure also required the use of the linear ordering to construct the dependent variable of the fiscal distress in order to analyse the “size effect” on the fiscal distress. Main findings: Fiscal distress of local governments is a core issue, which should be constantly analysed. It depends on the financial, economic, social and even political aspects. To identify exposure to this distress the TOPSIS method can be used. However, the fiscal distress can be affected by the size of the unit, which influences lots of budgetary categories. Due to the specificity of dependent and independent variables in the econometric models the “size effect” might be represented through the level of the population or the assets. Using the ordinal logistic regression in the research, the authors should consider that this effect can differ between the units with the disparate exposure. So, the partial proportional odds models can be required. Thus, the growth of the size of the unit, measured by the population, increases the odds of reaching very low exposure to fiscal distress. Simultaneously, there are some other important issues which should be included in this type of research.

A Supply-Demand Framework for Eco-Compensation Calculation and Allocation in China’s National Key Ecological Function Areas—A Case Study in the Yangtze River Economic Belt

China’s National Key Ecological Function Areas (NKEFAs) provide important ecosystem services but lose significant development opportunities. An NKEFA consists of a few National Key Ecological Function Counties (NKEFCs). China’s central government annually makes fiscal transfers to NKEFCs to compensate for their fiscal imbalance and ecosystem protection costs. The eco-compensation coefficient (ECC), together with the fiscal revenue and expenditure gap (FREG), determines the transfer payment, but the central government fails to provide practical methods for its estimation. This article proposes a framework for ECC estimation by integrating ecosystem service supply (ESS), ecosystem protection cost (EPC), and public service provision capability (PSC) of NKEFCs, and clarifies the criteria and indicators for ESS, EPC, and PSC evaluation. The framework was implemented in the Yangtze River Economic Belt (YZEB), and the results were compared with the payments in the current central-to-local fiscal transfer (CTLFT) system. The key findings and conclusions include: (1) The payment in the current CTLFT system mainly depends on the FREG rather than ESS and EPC of NKEFCs. (2) Some counties are notably under-compensated because their ESS or EPC are underestimated, or the province that administers them has a stronger fiscal capability. (3) The framework contributes to fair allocation and efficient use of eco-compensation payments by improving the ECC estimation method and identifying the main stressors and public service weaknesses in NKEFAs. This study gives the following policy implications: (1) Inner-provincial and cross-provincial watershed eco-compensation programs need to be developed to supplement the central-to-local eco-compensation program in the YZEB. (2) Environmental management strategies should be based on the characteristics of stressors and people’s livelihood in NKEFAs.

Brexit, International Finance, and Fiscal Capacity in the Long Run

The elements that influence, according to this paper, the approach to international finance and financial governance is evolving, with significant employ for the EU's ability to implement its preferences globally. It appears that two related factors are driving this transition. First, European Supervisory Authorities (ESAs) have recently gained popularity in international financial governance due to its unique incentives, priorities, and capacities. Second, as international financial regulation shifts from standard-setting to operational concerns, administrative organizations such as the ESAs have a greater opportunity to exert control. This article examines the consequences of the existence of a social democratic organizational channel by which the EU can engaged with global finance governance using the European Securities and Markets Authority as a research study. The data based on secondary and data collect from the world development indicators. The results analysis run from the smart PLS software and measure the performance of international finance and fiscal capability in the long run. Results indicate that there is inverse but significant relationship between international finance fiscal capability in the long run. The European Securities and Markets Authority has the best track record of any ESA in the world. It also makes some predictions on how the UK's relationship with international finance, also its governance and the ESAs as global organizations, would be affected by the Brexit decision.

GRAY ECONOMY AND CORRUPTION ASPECTS AS A THREAT TO THE NATIONAL ECONOMIC SECURITY SYSTEM

There is an urgent need for a comprehensive study and analysis of negative processes of deepening the level of second relations in the economy. The ghost economy is the result of the functioning and increasing signs of a systemic crisis in the economy, which arises due to the discrepancy and inadequacy of the methods used to implement market transformations. The spread of the gray economy occurred on the basis of the destruction of existing distribution relations and the construction of new ones, which significantly violated the established balance of economic entities interests, the parity of its separate spheres development, and the motivation for effective management. Another meaningful aspect is that the gray sector of the economy in any country really exists; it quickly reacts to changes in the implementation of the state economic life. That is why it is extremely important when studying the problem of increasing the scale of the gray economy is the prompt and rapid accumulation of information dealing with changes in its basic indicators. Hiding of tax revenues is a crime, and tax minimization, that is, an attempt to reduce their amount, is completely legal and provides the work of a large number of specialists in the field of tax law and accounting. But on the other hand, for economic entities operating in Ukraine, the critical threat is not the fiscal capability, but the uncertainty in the legislation and the political and economic life of the country.

Dampak Kawasan dan Status Negara Terhadap Pertumbuhan Ekonomi Negara-Negara Terdampak Covid-19


 Faisal Salistia
 IAI Nasional Laa Roiba Bogor
 faisalsalistia@laaroiba.ac.id
 
 
 ABSTRACT
 The COVID-19 pandemic has had multi-sectoral impacts, including disrupting the economic growth of many countries. This study aims to analyze the impact of the COVID-19 pandemic, fiscal capability as well as regional differences and country status on the economic growth of the affected countries. The method used is a quantitative method with a saturated sample of 135 countries, and a regression analysis approach with dummy variables. The results showed that the variables of pandemic cases, exposure time, population, regional differences and country status differences affected the economic growth of the affected countries (R2 0.6373). If the pandemic is under control and there is no disparity in management between regions and between countries, then global economic growth has the potential to be positive at 0.18%. If state spending is increased, it has the potential to reduce the impact of economic contraction by 0.27%. The management of the pandemic in the Asian, American and African regions is significantly different from that in the Australian region. Poor countries are different from developed countries, but not different from middle-income countries, in managing pandemics in their regions. In relative terms, the impact of the pandemic in Asia, America and Africa is heavier than other regions.

ANALISIS PERBANDINGAN EFISIENSI, EFEKTIVITAS DAN KEMAMPUAN FISKAL PADA ERA OTONOMI DAERAH DI KABUPATEN/KOTA PROPINSI KALIMANTAN BARAT

The method used in this research is comparative method using quantitative. The data source used is secondary data. The results shows that the comparison between efficiency and effectivity from district / city in West Borneo Province in 2006 – 2010 has declining trend and interrelated. While local fiscal capability which is measured from government finance performance shows that its dependence is still high enough because the contribution of fund balance is still above 50%.
 Base on the estimation result which is regressed by using EGLS method, it is obtained the result shows that two variables from local finance performance are not significant which are PAD effectivity ratio (REPAD) and local finance dependency ratio (RKetKD), where the estimation result also shows the existence of negative relation but significant to degree of decentralization ratio (RDD). The financial performance of local government still shows dependence on the central government, therefore it must be learn to be independent.

PENGARUH PAJAK DAN RETRIBUSI TERHADAP BELANJA LANGSUNG DAN PERTUMBUHAN EKONOMI DI ACEH

Current issues in the Aceh province are facing fiscal issues — the abundant budget but the economic situation is unstable. This research was conducted to see how the tax influence and the regional levy on direct spending are fiscal instruments, as well as see the impact on the economic growth of the district/city in Aceh Province in the period 2013-2017. The model used in this research is the data panel model with the Analysis of paths and the variables used are PDRB, direct spending, tax and regional levy. The estimated results of the panel data regression based on the best model Fixed Effect Model with the path analysis explained the influence of tax and levy on economic growth has a direct effect that is greater than the indirect effect through the direct spending intermediary variable. That is, direct spending is still supported by most by the transfer of funds or the balance Fund from the central government, in other words the Regency/City in the province of Aceh has not been independently in managing its fisscores. Therefore, the Regency/City government in Aceh province to be creative and innovative in digging the source of regional acceptance to the region. Further researchers are advised to further investigate the degree and fiscal capability as well as the addition of variables associated with other fiscal instruments. Keywords : Path Analysis, Direct Spending, Economic Growth, Tax And Regional Retribution.

Analysis on Fiscal Capacity and Regional Financial Acceleration: A Case Study on Ternate City, Indonesia

Indonesian Act No. 32 and 33 by 2014 about the formation of the regional autonomy is a challenge for local governments to utilize the potentials of the region. One of the local revenues for enhancing fiscal area is Regional Own Source Revenue (PAD), which are sourced from taxes and retributions. This research aims to analyze the financial management from the Government of Ternate. The secondary data collected from DPD, BPS, and offices related to the financial areas in 2010 – 2014 as well as data on the results of interviews with officials of the Regional Work Unit that has been appointed. By descriptive analysis, the result showed that economic growth has increased and indicated the increment of regional GDP. Based on the percentage of each sector against the Gross Domestic Regional Product in 2010 – 2014, trade, hotels and restaurants as well as other sectors were significantly contributing. The analysis found that the city of Ternate has not been financially able to carry out regional autonomy. However, the Government of Ternate is expected to improve regional financial capability by implementing intensification, the efforts to internally optimize local taxes and levies, and intensification, the efforts to expand and utilize new potentialities over regional tax and levies, to improve fiscal capability of the city of Ternate. To conclude, the effort in increase the District Own Source Revenue can be done by implementing intensification and intensification of regional tax and retribution.

MODEL DAN FORMULASI DANA ALOKASI UMUM NAGARI (DAUN) UNTUK MENGATASI KETIMPANGAN FISKAL NAGARI (STUDI KASUS DI KABUPATEN PADANG PARIAMAN SUMATERA BARAT)

This research uses the term Dana Alokasi Umum Nagari (Henceforth DAUN), general allocation fund for village as the replacement of the term village block grant. This research especially aims to solve tree major problems in DAUN policy, namely allocation, distribution, and the problem of priority DAUN program for the improvement of Nagari. This research uses case study approach that took place in Padang Pariaman West Sumatera.There are two data categories used in this research. First the data about stakeholders perception. The data gained through questionnaire that include 22 respondents selected through purposive sampling. Second, the data about the characteristic of Nagari that explain about the need and ability of Nagari in managing its governance. This secondarily data was collected from documentary study of Nagari.By using analytic hierarchical process (AHP) in analyzing the data, this study found, first the proportional fund for regency and Nagari was 86 : 14. Second compared with its fiscal capability the fiscal need dimension showed 59% in the formulation of the DAUN. Third, the first priority DAUN program was the improvement of Nagari infrastructure, the last priority was the improvement of Nagari economic affairs

Fiscal Responsibility and the Statutory Allocation of National Revenue for Nation Building in Nigeria: An Overview

The task of nation building is a daunting one and requires the sharing of statutory responsibilities and allocation of revenue to the components political units to financed development projects. This is designed to promote good governance and even development. The delineation of powers into exclusive, concurrent and residual powers for the federal, state and local government and the allocation of funds to each tier of government underscores propriety of political interdependence to nation building. Section 165 of the Constitution of the Federal Republic of Nigeria 1999 and the Allocation of Revenue (Federation Account, etc.) Act No.1 1982 stipulates that the revenues generated by the federal government should be credited into the Federation Account and disburse monthly among the three tiers of government as defined in the Revenue Act 1982. All the tiers of government depend on revenue from the federation account to finance development projects. In spite of this, many state government are unable to finance their capital and recurrent expenditure hence the justification to review the existing revenue sharing formular in favour of them. The fiscal challenge raises question the viability of many states and the need to allocate more resources power to the lower tier governments to enhance their fiscal capability and operation efficiency.

A Study on the Improving Fiscal Capability of Local Government -Focusing on the case of zeroing debt policy in Yong-in city

A Study on the Improving Fiscal Capability of Local Government -Focusing on the case of zeroing debt policy in Yong-in city

MODEL DAN FORMULASI DANA ALOKASI UMUM NAGARI (DAUN) UNTUK MENGATASI KETIMPANGAN FISKAL NAGARI (STUDI KASUS DI KABUPATEN PADANG PARIAMAN SUMATERA BARAT)*

This research uses the term Dana Alokasi Umum Nagari (Henceforth DAUN), general allocation fund for village as the replacement of the term village block grant. This research especially aims to solve tree major problems in DAUN policy, namely allocation, distribution, and the problem of priority DAUN program for the improvement of Nagari. This research uses case study approach that took place in Padang Pariaman West Sumatera. There are two data categories used in this research. First the data about stakeholders perception. The data gained through questionnaire that include 22 respondents selected through purposive sampling. Second, the data about the characteristic of Nagari that explain about the need and ability of Nagari in managing its governance. This secondarily data was collected from documentary study of Nagari.By using analytic hierarchical process (AHP) in analyzing the data, this study found, first the proportional fund for regency and Nagari was 86 : 14. Second compared with its fiscal capability the fiscal need dimension showed 59% in the formulation of the DAUN. Third, the first priority DAUN program was the improvement of Nagari infrastructure, the last priority was the improvement of Nagari economic affairs.

Local Fiscal Capability and Liberalization of Urban Hukou

In today’s China, over 230 million urban migrants are denied a number of government-funded social benefits which are the basic entitlements of local hukou residents. A conventional justification for this denial is a fiscal burden, since city governments have to shoulder much of the fiscal costs of migration. This article probes whether such denial can be understood by the fiscal capacity of city governments. To develop the understanding, the article estimates expenditure need, calculated as a measure of the cost of providing basic public services for an urban hukou for a sample of 45 cities. It also examines whether local fiscal capacity, based on the comparison of expenditure need with available resources in the given city, can provide equitable and sustainable public services to large and growing migrant populations. The authors find that, although expenditure need per hukou varies considerably between cities, available budgetary resources are not commensurate with expenditure responsibilities in almost all cities. Hukou liberalization requires the central government to play a decisive role in equalizing fiscal capacities between cities.

KINERJA KEUANGAN PEMERINTAH KABUPATEN MANOKWARI DITINJAU DARI DERAJAT OTONOMI FISKAL DAN INDEKS KEMAMPUAN RUTIN

This study aims to analyze the financial capability of Manokwari regency government seen from theratio of the degree of fiscal autonomy and capability index ratio routine. The data used are secondarydata include the data of the Regional Income (Pendapatan Daerah), the realization of Local OwnRevenue (Pendapatan Asli Daerah), and Routine Expenditures (Belanja Rutin) in 2010 through 2014.Data analysis using financial ratio analysis. The results of this study showed that the degree of fiscalautonomy Manokwari district is at the low category. It is seen that in the mean is 3.00% or at veryless or categories range 0.00% to 10.00%.Furthermore Routine capability index is in the lowcategory. It is seen that in the mean is 16.5% or are at very less or categories range 0.00% to 20.00%.Keywords: regional income, local own revenue, routine expenditures

Institutions, Location, and Networks of Multinational Enterprises in China: A Case Study of Hangzhou

Based on interviews with local government officials and a survey of 44 foreigninvested enterprises (FIEs), this article examines the significance of local formal institutions for intramunicipal location decisions of multinational enterprises (MNEs) and for network properties of their investments in Hangzhou, China. This study finds that local formal institutions, in terms of municipal district governments and development zone authorities, are a significant force influencing the location decisions of MNEs within Hangzhou. These local entities shape the intramunicipal location decisions of MNEs through three primary vehicles including financial incentives, industrial infrastructures, and attitudes toward foreign investors. The start-up fiscal capability of local formal institutions is therefore central to the foreign investment development efforts. Local formal institutions, however, are a less significant force influencing the network properties of FIEs in Hangzhou. District governments and zone authorities are largely confined to measures for co-locating allied foreign supplier investments to promote FIE local linkages.

地方自治体における環境政策の現状と課題

Recent established National Basic Environmental Plan calls for local governments to build thier own local environmental basic plans and municipal bylaws of the environment, But actually only about ten percent of local governments build them according to the survey of the Ministry of the Environment. Our survey target is the division of the environmental policy in local governments. We mailed questionnaires to 3, 302 local governments and 1, 526 were responded in January 2000. Using this data, we employ logit regression analysis and found that population, the budget scale, the fiscal capability index, existence of environmental division in the load government, existence of local assemblymen who committed environmental policy measures in election, existence of environmental division in the local government, higher citizen's awareness towards the environment, use of professional knowledge for policy decision making are major factors for implementing the environmental plan or bylaw.

DOING THE RIGHT THING?

This article offers a feminist deconstruction of legitimacy regarding the intentional decision by midlife independent single women to enter solo parenthood. Data collection involved interviews with 26 single mothers by choice (SMCs) and two years of participant observation in two Single Mothers by Choice support groups. Their accounts indicate that SMCs feel entitled to enter solo motherhood because they possess four essential attributes: age, responsibility, emotional maturity, and fiscal capability. SMCs use economic, moral, and religious justifications to further legitimize their decisions. These justifications allow SMCs to present themselves as competent, ethical, and mainstream mothers.

The Making of a Regulatory Crisis: Restructuring New York City's Water Supply

Much practically orientated environmental research is marked by a polarity between functionalist abstraction and ahistorical normative discourse. This paper seeks to bridge the divide between theoretical and empirical research through a case study of New York City's water supply. Current processes of socio‐economic restructuring are leading to negative environmental consequences obscured by a failure to extend analysis beyond limited temporal, spatial or sectoral scales. Insights from regulationist theory show that a combination of fiscal, political and other developments are bringing about a wide‐ranging reformulation of existing patterns of environmental regulation and service provision in the city. The power of the state is being radically diminished in relation to the power of capital and a plethora of different interest groups. A relatively simple centralized model of environmental regulation is being transformed into a complex decentralized pattern involving the emergence of new approaches to urban governance. Further research is needed on the contradictions between capitalist accumulation and environmental regulation at different spatial scales in order to link New York's changing role within the global economy to the declining political legitimacy and fiscal capability of the state to play an extensive role in environmental management.

Resources Versus Results: Comparative Performance of State Highway Systems, 1984–1990

This article compares the relative performance of the U.S. and the 50 state highway systems against resources available, over the period 1984–1990. Data are collected on 13 measures of revenues, expenditures, pavement condition, congestion, bridge condition, and accidents. Statistics are normalized to control the effects of size and inflation. Each state's performance is then graded according to whether the state is making progress, holding steady, or losing ground relative to the national trends. Findings show that the U.S. highway system is in good condition and is continuing to improve: even statistics on congestion are now beginning to show improvement. Against this general improvement six states have been able to maintain or improve their highway systems with considerably less resources per mile than other states. These states are New Mexico, South Dakota, Wyoming, Mississippi, South Carolina, and Arkansas. Each of these stales seems to have a combination of geography, traffic, economic structure, and fiscal capability that results in particularly cost‐effective highway systems. The findings suggest that simplistic explanations of performance based on location, urban/rural distinctions, weather, climate, or taxes are inadequate; more research is needed to explain the causes of these differences.