Government Resource Allocation Research Articles

Determinants of receiving government support by small and medium-sized enterprises in Russia

Government support measures help companies overcome various restrictions impeding their growth and develop ment, which is of special relevance for small and medium-sized enterprises (SMEs). These measures, therefore, must reach the target companies and ensure efficient allocation of resources. The article reveals key characteristics of SMEs in Russia that increase the probability of them receiving government support. The research methodology is based on public interest theory, public choice theory and the concept of economic freedom. The research method is a two-step regression analysis, in which the binary choice model is first evaluated, and then the LASSO model is used to assess the impact of the textual content of the companies’ websites. The dataset of the study is represented by data on 2,176 Russian metallurgical enterprises for 2020–2023, of which 57% were receiving government support. The results of the first step of evaluation showed that the organization’s age and size meas ured by revenue were the key factors associated with the probability of receiving government support. At the second step, we found that the mention of certain goods or materials on the websites, the enterprise’s location and orientation towards foreign stakeholders were significantly related to the likelihood of getting state support. The study offers tools for analyzing the determi nants of government support for SMEs and highlights the importance of this analysis for more efficient allocation of government resources.

Adaptation of the RESPECT framework to prevent violence against women, Indonesia.

Violence against women is a global health problem. Effectively preventing such violence requires locally adapted strategies. The World Health Organization in Indonesia, in collaboration with United Nations (UN) Population Fund, UN Women, United Nations Children's Fund, United Nations Development Programme and Joint United Nations Programme on HIV/AIDS, launched capacity-building initiatives to introduce RESPECT as an evidence-based framework to address violence against women. The initiatives included stakeholder engagement, module development, sensitization training, a workshop and evaluation sessions. These sessions introduced RESPECT strategies to government officials, UN officers and community representatives, mapped best practices and developed action plans. Indonesia has a substantial burden of violence against women, despite numerous laws and policies to combat it. The 2021 Indonesian violence against women survey showed that 26.1% (3341/12 800) of women aged 15-64 years had experienced violence in their lifetime, with 8.7% (1114/12 800) experiencing violence in the past year. The initiatives to introduce RESPECT led to securing government support, and verbal commitment was given by the Director for the Protection of Women's Rights against Domestic Violence and Vulnerability to integrate RESPECT into the 2025-2029 National Development Plan and National Strategy for Reducing Violence Against Women. RESPECT can be adapted to local contexts through customization and capacity-building and by ensuring initial government support, dedicated personnel, resource allocation and use of established relationships with key stakeholders. Improved research, monitoring and evaluation are vital to promote evidence-informed decision-making, together with community engagement and multistakeholder collaboration. The UN can facilitate these efforts.

Political Connections and the Effectiveness of US State Government Resource Allocation

Political Connections and the Effectiveness of US State Government Resource Allocation

Cross border e-commerce development and enterprise digital technology innovation—empirical evidence from listed companies in China

As the main form of digital trade, cross-border e-commerce plays an important role, allowing China to expand its opening-up and promote the optimal foreign trade structure. It also provides opportunities for Chinese enterprises to develop digital technology. From the perspective of the establishment of China's cross-border e-commerce comprehensive pilot zone (CBECPZ), this article uses the multi-period DID method to examine the effects of cross-border e-commerce on enterprise digital technology innovation based on listed companies in the Shanghai and Shenzhen stock markets from 2007 to 2020. The CBECPZ dramatically promotes enterprise digital technology innovation. The mechanism test shows that the CBECPZ promotes digital technology innovation by financing constraint alleviation, digital transformation, and producer service industry agglomeration. The heterogeneity test shows that the direct effect is more significant in the enterprises of large-scale, non-state-owned, with high ICT correlation and in areas with strong government resource allocation capabilities. The research findings have important reference value for how to utilize cross-border e-commerce to promote digital technology innovation, and they also provide directional references for other developing countries to develop cross-border e-commerce.

Corporate income tax reform and intra-industry resource reallocation

ABSTRACT Taxation is a crucial tool for government economic regulation and resource allocation. Our study, using data from the Chinese Industrial Enterprise Database from 1998 to 2010, highlights the significant role of corporate income tax reform in reducing resource misallocation in the industry. Employing the robust Difference-in-Differences method, we empirically confirm this effect. Our mechanism analysis reveals that the reform promotes increased competition among industry firms, resulting in enhanced resource allocation efficiency. These findings emphasize the vital role of tax policy in shaping resource allocation dynamics in Chinese market, underscoring its broader economic significance.

Exposing Uganda’s Cultural Mosaic: An examination of the Endingidi’s origins, educational and aesthetic dimensions

The field of music analysis has experienced significant growth, encompassing diverse aspects such as corporal movements in instrumental performance, dance studies, and cognition-centric methodologies. This paper provides a historical overview of the endingidi, a traditional tube-fiddle, within a broader context. It examines the materials used in constructing the endingidi as well as the challenges encountered in this process. Additionally, the paper explores the performative expressive elements of the endingidi, including accompanying gestures. Despite the enduring presence of the endingidi as a timeless traditional instrument, there remains a notable gap in comprehensive studies that unravel its intricate cultural significance, an oversight this investigation conscientiously seeks to address. The study identifies challenges in material sourcing for the endingidi due to scarcity and environmental degradation. Proposed interventions include afforestation, alternative materials, government support, and community engagement. Emphasizing sustainable practices and responsible harvesting, it urges government leadership, documentation of techniques, and community support for artisans. Linking to broader music education challenges, it advocates for government resource allocation. Providing a nuanced understanding of the endingidi, it underscores multidimensional approaches to safeguarding it as part of Ugandan cultural heritage, highlighting the importance of sustainability, research, government, and community involvement in preservation efforts.

Research on the economic agents' green co-evolution of China: Framework, model, and application

Based on the idea of green coordinated development and green co-evolution, the system of green co-evolution composed of government, financial institutions, enterprises, and the public is constructed, using Functional Data Analysis combined with CRITIC weighting, Dagum Gini coefficient and Kernel density estimation to measure the green co-evolution level (GCEL) and the regional disparity based on data of 31 provinces and 992 enterprises from 2010 to 2021, it finds: (1) At the turning point of 2015, the GCEL has been from declining to rising, and the poor performance of enterprises and the public is main factors. (2) The GCEL of regions shows a distinct non-balanced development trend, with the middle- and low-level provinces accounting for the largest proportion. Moreover, the rising of Gini coefficient means that provincial synergy is weaker. (3) Since 2012, the disparity between eight comprehensive economic zones has increased, mainly due to the polarization of the performance of the main players, such as the rising gap in the allocation of government and financial resources. Regional differences have always been dominant, with the largest disparity between Northwest China and the three coastal economic zones. (4) The total distribution tends to converge to lower level, but has no significant convergence. From the perspective of green co-evolution, this paper measures the green co-evolution level, temporal and spatial evolution, and regional disparities, providing a reference for promoting regional green coordination and sustainable development.

Linking methodologies to assess climate impacts and circular economy strategies along supply chains

This paper introduces a generic hybrid methodology for assessing economic and environmental impacts along interconnected supply chain markets, considering both the material/product level and the market mechanisms that govern resource allocation. The methodology is illustrated by considering a competitive market and benevolent social planner variant of a supply chain equilibrium (SCE) model, applied to the specific case of single-use and reusable plastic bottles in Belgium. The benevolent social planner optimises a societal welfare function that includes all relevant revenues and costs along the plastic bottle supply chains – including external environmental damage costs. These costs comprise climate damage and are incorporated into the SCE model by combining life cycle assessment data with economic data. The main advantage of this model setup is that it better represents policy reality because it allows to study the effectiveness and efficiency of the simultaneous implementation of multiple circular strategies, their interactions, and possible rebound effects. The findings indicate that when all climate costs are internalised simultaneously, the competitive market solution approaches that of the benevolent social planner. Yet, when policymakers have fewer instruments at their disposal in relation to the number of environmental externalities, the welfare impact of competitive market solutions is limited or even negative. Moreover, key circular economy practices such as material intensity reduction and green design are particularly lagging behind compared to their welfare-optimising levels.

Open government data and resource allocation efficiency: evidence from China

ABSTRACT Data are among the most valuable resources. This paper, utilizing the China Tax Survey Database from 2009 to 2016, investigates the impact of Open Government Data (hereafter, OGD) on the efficiency of resource allocation among firms within the Chinese context. The findings indicate that OGD significantly reduces the deviation in firms’ factor inputs, thereby enhancing the efficiency of resource allocation. This is primarily achieved through the optimization of government-business relationships, the reduction of rent-seeking costs, and the decrease in information asymmetry. Given the inclusive nature of OGD, it has a more pronounced positive impact on disadvantaged firms and cities. Furthermore, while OGD directly improves representative firm’s TFP, its greater economic impact lies in elevating aggregate TFP by enhancing resource allocation efficiency. In the current global economy, highly dependent on data-driven processes, the conclusions of this paper provide a novel perspective on the role of OGD in enhancing productivity. This has significant implications for accelerating the implementation of open data policies and enhancing economic efficiency.

How Does Developing Green Agriculture Affect Poverty? Evidence from China’s Prefecture-Level Cities

Eradicating poverty and improving human well-being are pivotal objectives for achieving global sustainable development. Sustainable agriculture, as a key domain, plays a crucial role in addressing poverty. However, to date, there remains insufficient research on the specific impact of agricultural green development on poverty. To bridge this gap, we utilize panel data from 273 prefecture-level cities in China from 2006 to 2022 to explore how agricultural green development affects poverty based on constructing a regional multidimensional poverty index and an index of green agriculture. Our study reveals that agricultural green development effectively reduces poverty, particularly in regions of deep poverty and the eastern part of China. Further mediating analysis indicates the alleviation of poverty by agricultural green development through the infrastructure, the industrial structure, and the green technology innovation effect. Our findings offer valuable insights for informing policies on agricultural green development and poverty reduction, as well as for improving government resource allocation and strengthening resilience in impoverished areas. By deepening our understanding of the link between green agriculture and poverty, this research significantly contributes to global agricultural sustainability and expedites poverty eradication worldwide.

The impact of city-county merger on firm-level total factor productivity-Evidence from China.

This study examines the potential negative effects of city-county mergers on firm-level total factor productivity (TFP). A theoretical framework is established to explain how city-county mergers could lead to higher institutional and non-institutional costs, thus influencing government decision-making and resource allocation. As a result, firms operating in the economy will absorb these costs and adjust their behavior accordingly. By employing Chinese firm-level data in a difference-in-differences approach, this study finds a statistically significant negative effect of transitioning county-level cities into municipal districts (TCD) on firm-level productivity. Additionally, this study identifies the financial situation of reformed governments and the internal environment of firms as two mechanisms through which the TCD reform influences firm-level productivity.

Relationship between Capital and Recurrent Expenditure with GDP Growth in Nepal: An Autoregressive Distributed Lag (ARDL) Approach

This study examines the relationship between Capital and Recurrent Expenditure with GDP Growth in Nepal. Employing a multivariate autoregressive distributed lag (ARDL) approach to the data from 1974 to 2020, the empirical findings reveal a strong long-run relationship between recurrent and capital expenditure with the nominal GDP. Interestingly, the impact of recurrent expenditure is higher than that of capital expenditure on GDP in the long run. However, the analysis highlights no clear short-run relationship. The weak short-term relationship observed may be due to the leakage of multipliers and the concentration of a major portion of expenses towards the end of the year. Consequently, the study calls for reforms in the implementation of the government budget, ensuring the even distribution of expenses throughout the fiscal year. Also, the government can increase the efficacy of its spending in the short run by pursuing policies that plug in the leakages of the spending multiplier. The outcomes of this research contribute to the broader discourse on the optimal allocation and implementation process of government resources and provide valuable insights for policymakers in Nepal seeking to bolster economic growth and development.

Local government competition and resource allocation efficiency

This study confirms that local government competition is an important influencing factor on resource allocation efficiency. The results indicate that local government competition can inspire local governments to better serve local businesses and residents, improve administrative efficiency, reduce unnecessary administrative barriers, and encourage the government to allocate resources more efficiently. Moreover, the heterogeneity analysis results show that the promotion effect of local government competition on resource allocation is more pronounced in areas with lower marketization and in private enterprises. Overall, the results of this study indirectly confirm that building a "proactive government" can optimize the resource allocation efficiency.

Correction: Optimizing government resource allocation in public sectors: investigating intelligent urban systems for effective crisis management

Correction: Optimizing government resource allocation in public sectors: investigating intelligent urban systems for effective crisis management

Government resource allocation through related party transactions: Evidence from China

Using unique hand-collected data of related party transactions (RPTs) between state-owned enterprises (SOEs) and government noncorporate agencies in China, we investigate the behavior of government resource allocation and its impacts. We find that Chinese governments are more likely to allocate resources to SOEs with a politically connected chairperson of the board through RPTs. The results remain robust after considering endogeneity concerns. In SOEs with a politically connected chairperson, resources obtained through RPTs are not associated with improved economic outputs except for increased investment expenditures. In addition, resources obtained are associated with improved labor cost stickiness. Our results add new evidence of the political exchange between Chinese governments and SOEs facilitated by politically connected executives. JEL Classification: G30, G38

Government resource allocation practices toward carbon neutrality in China: A hybrid system approach

Government resource allocation practices for achieving carbon neutrality need to be guided by dynamic system theory to identify potential dynamics in China. In particular, dynamic system theory addresses the complex interrelationships and identifies the changes in dynamics to support the decision-making process in pursuing carbon neutrality among international trade, transportation, industrial demand and dynamic control. However, carbon neutrality involves various activities to better understand the complex activity interrelationships. The data are collected from four major databases including 30 Chinese provinces/cities covering a six-year period with the accumulated frequency in the Baidu Index. This study proposes a hybrid system approach to dynamic resource analysis. The results showed that carbon intensity control dynamics impose a greater influence on the other dynamics toward carbon neutrality. Many provinces can achieve carbon neutrality by regulating the electronics and telecommunications equipment industry.

RETRACTED ARTICLE: Optimizing government resource allocation in public sectors: investigating intelligent urban systems for effective crisis management

RETRACTED ARTICLE: Optimizing government resource allocation in public sectors: investigating intelligent urban systems for effective crisis management

Decentralized response as a pandemic second‐best: The case of Russia

AbstractCentralized state response is almost universally considered as the first best option for managing pandemics. This paper argues that in reality, states fall short of this ideal. Knowledge problems hinder the government's disease acknowledgement, resource allocation and feedback, while compulsion, political predation, and corruption exacerbate the situation further. On the other hand, a decentralized, voluntary response may overcome knowledge problems and opportunism through effective signals such as prices, better incentives, local knowledge, and internalization of disease‐related externalities. This results in a speedier, more effective, and responsive pandemic management, which also accounts for differences in risk preferences, and becomes a feasible second‐best option. I then apply these insights to Russia and its history of disease management. I focus on three diseases: plague, cholera, and COVID‐19, which results in a historical analysis that spans multiple centuries and different institutional settings. I show that government‐led pandemic response in Russia has been riddled with knowledge problems, abuse, political predation, and violence. On the other hand, a decentralized response was quicker and more effective at managing the disease, often emerging even in the most unfavorable circumstances.

Industrial Policies vs Public Goods under Asymmetric Information

This paper presents an analytical framework that captures the informational problems and tradeoffs that policy makers face when choosing between public goods (e.g., infrastructure) and industrial policies (e.g., firm or sector-specific subsidies). The paper first provides a discussion of the literature on industrial policies. It then presents an illustrative model, where the economy consists of a set of firms that vary by productivity and a government that can support firms through general or targeted expenditures. The paper examines the cases of full and asymmetric information on firm productivity. Working under full information, it describes the first-best allocation of government resources among firms according to their productivity. It then introduces uncertainty by restricting information regarding firm productivity to be private to the firm. The paper develops an optimal contract (which replicates the first-best) consisting of a tax-based mechanism that induces firms to reveal their true productivity. As this requires high government capacity, the paper considers other simpler policies, one of which is the provision of public goods to all firms. The paper concludes that providing public goods is likely to dominate industrial policies under most scenarios, especially when government capacity is low.

Climate smart agriculture technologies adoption among small-scale farmers: a case study from Gujarat, India

In India, 78% of farmers are small and marginal, cultivating only 33% of the arable land but producing 50% of the food grain; their vulnerability to climate change poses a significant threat to the country’s food security. To enhance agricultural resilience, it is crucial to understand how these farmers perceive and integrate climate-smart technologies into their farming practices. A random sample of 240 farmers was selected for this study. An ex-post facto research design was employed to investigate farmers’ awareness of and adoption of CSAT and identify the significant variables influencing their decisions. The results indicate that approximately 74 per cent of farmers had low to medium awareness of CSAT, while around 83 per cent had low to medium adoption rates. Several factors were found to be significantly correlated with farmers’ awareness and adoption of CSAT, including education level, annual income, exposure to agricultural mass media, participation in extension programs, innovativeness, achievement motivation, risk orientation, and scientific orientation. Additionally, farmers faced various challenges in adopting CSAT, such as the high cost of inputs, limited knowledge about CSAT, and youth migration from rural areas. Based on the study’s findings, farmers emphasized the importance of involving them in decision-making processes related to the development of climate-smart technologies. They also highlighted the need for a timely supply of inputs and field visits to successful farms as effective means to promote awareness and adoption of CSAT. The comprehensive analysis of associated factors and empirical findings presented in this study will benefit private sector organizations, government extension agents, academics, and policymakers. By gaining insights into the determinants of CSAT adoption, these stakeholders can focus their efforts more effectively on promoting widespread adoption. Additionally, this study can inform policy decisions regarding the allocation of government resources to combat climate change.