Size Of Government Research Articles

오차수정모형을 이용한 금융발전의 영향요인 분석

This study empirically analyzed the effected determinants of global innovation, economic freedom, and GDP on financial development. An analysis was conducted by the OLS error correction model using panel data(N=224) from 2011 to 2019 of 28 countries. The results showed that economic freedom was the most influential factor in global financial development, and that global innovation and GDP also had a positive impact. Among components of economic freedom, property rights, money soundness, and market openness were found to have a positive impact on financial development, while regulations and government size were found to have a negative impact on financial development. And among components of global innovation, market sophistication, human capital research, infrastructure, knowledge and technology outputs, and business sophistication had an impact on financial development, but institutions and creative outputs did not appear to have an effect. This results has an academic importance of showing that economic freedom and innovation is more important factors than GDP for global financial development. Thus it is assumed that an advanced free-market economy system with a fair legal framework and a constant innovation is important for financial development in global environment where neo-protectionism is spreading.

Drivers of international fiscal spillovers

AbstractThis paper investigates the drivers of international fiscal spillovers across 62 countries for the period covering 1970–2021. Using the local projections method at the country‐pair level, fiscal spillovers are estimated as the cumulative response of the real gross domestic product (GDP) growth in spillover destination countries to a unit shock in the real government spending growth in spillover source countries. Pairwise estimation results (for 3782 country pairs) suggest that there are statistically significant fiscal spillovers for 36% of country pairs, whereas this ratio is 49% for country pairs within the euro area. For the median country pair, a unit shock of real government spending growth in the spillover source country results in about 0.09% of the increase in the real GDP growth of the spillover destination country, whereas this fiscal‐spillover estimate goes up to 0.42% when the spillover source is in the euro area, and the spillover destination is an oil producing country. A secondary investigation based on the Heckman selection model is used to identify the drivers of fiscal spillovers across country pairs, where the existence of statistically significant fiscal spillovers is shown to be connected to the proximity between countries. The size of fiscal spillovers is further shown to increase with the initial (as of 1970) country size, trade openness, and government size of the spillover source country, whereas it decreases with the initial country size and trade openness of the spillover destination country. Important policy suggestions follow.

Does international trade improve carbon productivity? Evidence from countries along the Belt and Road.

The Belt and Road Initiative proposed by China has significantly increased trade in countries along the Belt and Road (B&R). Since most of these countries are developing and emerging economies, the pressure to reduce carbon emissions poses a leading challenge for them. Carbon productivity has become a key indicator for assessing the degree of low-carbon development, as it can link economic development with CO2 emission reduction. However, few studies have investigated how international trade affects carbon productivity. Based on panel data from 43 countries along the B&R during 2001-2019, this paper uses a system GMM model to explore the impact of international trade on carbon productivity. Then, we divide the 43 countries in the sample into two groups according to their income levels to compare the different effects of international trade on carbon productivity. The results show that, first, the carbon productivity of the examined B&R countries has an overall increasing trend, and there is a significant heterogeneity of carbon productivity among countries with different income levels. Second, the effects of international trade, export, and import on carbon productivity are all significantly positive, and export's effect is higher than import. In the high-income group, carbon productivity is more likely to be improved by trade than in the middle (low)-income group. Third, economic development level, urbanization, and energy productivity are positively associated with carbon productivity, while CO2 per capita and government size inhibit carbon productivity improvement. Insight into the impact of international trade on carbon productivity provides theoretical support for B&R countries to better leverage foreign trade activities to achieve a green economy.

Government size and digital inequality in Indonesia

Government size and digital inequality in Indonesia

Opini Audit, Nilai Aset, Dan Kemandirian Daerah Sebagai Determinan Audit Delay: Studi Empiris Pada Pemerintah Provinsi Di Indonesia 2018-2021

Since 2003, Indonesia has gone through a financial reform. Based on Law No. 13/2004, the Audit Board of Indonesia (BPK) is required to submit the audit report (LHP) including the audit opinion to the Regional People’s Representative Council (DPRD) no later than 2 (two) months after the unaudited financial report is submitted by the local government. This becomes BPK's guideline in completing its audit to avoid delays. During 2017-2021, the audit opinion on local government financial reports (LKPD) has increased. This increase in opinion includes an increase in the unqualified opinion (WTP) to 92.4% of the 2021 financial statements from 76% in 2017. This study aims to answer research gaps related to the effect of audit opinion, local government size through asset value as a proxy, and local autonomy on audit delay. Furthermore, it is important to obtain empirical evidence about the effect of opinion, local government size, and local autonomy on audit delay.

Government Size and Corruption in Turkey

Corruption has been one of the challenging topics in public economics for years, prompting extensive discussions from various perspectives. In this study, we investigate the causal relationship between government size and corruption in Turkey, where the anticorruption performance has been getting worse over time until recently. By utilizing a long-span news-based corruption index spanning approximately three-quarters of a century, we conclude that government size serves as the long-term driving force behind corruption in Turkey from 1950 to 2019. This conclusion is robustly reached through a battery of dynamic time series analyses.

Government Expenditure and Inflation in India: An Empirical Analysis

In any economy, inflation increases with an increase in economic growth and government size. However, when inflation increases beyond a certain undesirable level, it becomes a problem for the economy and hurts economic growth. The central bank uses various techniques to tackle inflation and reduce the possibility of harmful increase in it. Since India is a developing country, the government expenditure plays a crucial role and provides an important stimulus to economic growth. The main focus of this study is on the correlation between government spending and inflation in the country and its impact over the period 1983–2020. Along with that, the impact of gross domestic product and money supply has also been studied for the same time period. The results of the study suggest that in India, increase in an government expenditure causes an increase in inflation, and the other two variables also share a similar relationship with inflation.

Budget Deficits in Pakistan: A Time Series Analysis of The Impact of Economic Political and Institutional Factors

This article aims to provide a thorough empirical examination of the budget deficit of Pakistan, spanning a period of four decades from 1976 to 2023. In order to fulfill the objective of the study, a wide range of economic, political, and institutional variables have been extensively examined. The ARDL technique to cointegration has been employed due to the time series structure of the variables. The objective of this article is to examine the long-term correlation between the budget deficit and its several drivers, such as inflation, debt services, economic expansion, and government size. The study's findings offer important insight into the dynamic connections between the budget deficit and its different determining factors. In Pakistan, inflation has become a major and harmful factor contributing to the budget deficit. The data demonstrates that a continuous increase in prices has resulted in a higher budget deficit. Furthermore, empirical evidence indicates that a significant portion of the deficit that exists is attributed to debt servicing charges. This highlights the importance of implementing effective regulations to control debt. Economic development exerts a positive and major impact on the management of budget deficit. In the case of Pakistan, a higher growth rate is correlated with a lower budget deficit. Moreover, this size of government has an adverse impact on the budget deficit. This demonstrates the necessity for the effective management of public finances. Corruption has an insignificant impact on the increase of the budget deficit in Pakistan. Moreover, the relationship between the political variables and budget deficit is not significant. The study fails to identify the relationship between the elections and democratic processes. This finding is unanticipated and the cause of rejection of one of the main hypothesis of the study. This may be attributed to the fact that the concerns of the political factors may be comparatively minor as compared to the economic ones. Keeping in view the findings of the current study and the previously mentioned variables, therefore this study provides an important insight into the dynamic relationship between the budget deficit and others economic, institutional and political factors. The findings of this study has generated fresh avenues for the future research, especially for the examinations of the impact of political factors because, this hypothesis has been rejected in our study.

INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

Growth and development require a framework of institutions which reduces transaction costs and thereby their effectiveness, and this will reduce the poverty problem in developing countries. The paper investigated the relationship between institutional quality and economic growth in 18 Asian developing countries from 2013 to 2020 using fixed effect model. The results revealed that sound money has a positive and significant impact on economic growth whereas size of government, legal systems and property rights, foreign trade internation, and regulations were statistically insignificant. To achieve the Sustainable Development Goals, the framework provided by the General Assembly of United Nations also given higher priority of institutional quality of the countries.

Optimizing Entrepreneurial Ecosystems: Insights from Choice-based Conjoint Analysis of Chinese Entrepreneurs

Entrepreneurship is pivotal for economic growth, and fostering urban entrepreneurship environments has gained significant attention from policymakers and scholars. This study investigates the importance of different attributes within Entrepreneurial Ecosystems (EE) and their impact on regional entrepreneurship. Using Choice-based Conjoint Analysis (CBCA), preferences of 550 Chinese entrepreneurs were examined. Results reveal that funding size, government size, and financial capital are critical attributes. Entrepreneurs with higher initial capital prioritize funding size over market potential. Moreover, entrepreneurs with lower initial capital demonstrate a significantly higher willingness to pay for relocating to regions with higher per capita deposits. These findings provide insights for local governments to tailor strategies for attracting entrepreneurs with diverse capital levels, emphasizing subsidies for large enterprises or improving local livelihoods to foster small and medium-sized enterprises.

Government Expenditure and Nonprofit Sector Size: Testing Boundary Conditions for Theories of Government–Nonprofit Relationships With Evidence From Chinese Environmental NGOs

This study explores boundary conditions for the two competing models—supplementary and complementary models—of government–nonprofit relationships within the context of Chinese environmental nongovernmental organizations (eNGOs). Analyses of 8 years of panel data and in-depth interviews reveal the following: First, while the complementary model effectively explains the relationship between government and environmental government-organized NGOs (eGONGOs), the sector size association between the government and civic eNGOs displays a pattern that combines supplementary and complementary models. Second, when predicting the sector size association between the government and civic eNGOs, the complementary model prevails when the government size is small while the supplementary model dominates when the government is large. Third, the complementary relationship persists for a longer duration under certain policy contexts, particularly in cases where direct registration policies are implemented. This study contributes to the literature by complementing recent endeavors to explore potential moderating or mediating effects of government–nonprofit relationship models.

Institutional quality, economic development, and the sustainable outcomes of PPP projects: An empirical analysis of failed PPP projects in China from 2014 to 2020

The trajectory of China's PPP market since 2014, characterized by rapid expansion and a high failure rate, now plunges into a state of limbo and uncertainty. Through a quantitative analysis of failed PPP projects in China from 2014 to 2020, this study investigates the impact of local government institutional quality, private capital business environment, local economic development, and local fiscal affordability on the development and implementation of PPP projects. The findings reveal that larger government size is associated with a higher likelihood of PPP project failure, while a favorable private capital business environment can mitigate the failure rate of local PPP projects. Furthermore, empirical results demonstrate a positive relationship between local fiscal affordability and the success rate of PPP projects. The analysis underscores the significant influence of the institutional environment on the effectiveness of PPP projects and provides policy recommendations for local governments to enhance the business environment and other key factors contributing to the resilience of PPP projects.

DO CAPITAL EXPENDITURES HAVE A MODERATING EFFECT ON THE ASSOCIATION BETWEEN REGIONAL GOVERNMENT DEPENDENCE, SIZE AND FINANCIAL INFORMATION TRANSPARENCY?

This research aims to analyze the influence of dependence and size of local government on the transparency of financial information by using the proportion of capital expenditure as a moderating variable. Research was conducted in four cities and four regencies in Banten Province for five years (2018 - 2022). The method used is purposive sampling using secondary data from Regional Government financial reports and other related documents. Data was collected by accessing the official Regional Government website to search for financial information from 2018 to 2022. Hypothesis testing was carried out using multiple regression analysis for panel data. The research results show that the level of Regional Government dependency and the size of the Regional Government do not influence the transparency of Regional Government financial information, and capital expenditure does not play a moderating role in this relationship. This research implies the importance of transparency of Regional Government financial information as a monitoring medium for the community, especially in managing capital expenditure.

Revisiting the countercyclicality of fiscal policy

This paper provides a novel dataset of time-varying measures on the degree of countercyclicality of fiscal policies for advanced and developing economies between 1980 and 2021. The use of time-varying measures of fiscal stabilization, with special attention to potential endogeneity issues, overcomes the major limitation of previous studies and allows the analysis to account for both country-specific as well as global factors. The paper also examines the key determinants of countercyclicality of fiscal policy with a focus on factors as severe crises, informality, financial development and governance. Empirical results show that (i) fiscal policy tends to be more countercyclical during severe crises than typical recessions, especially for advanced economies; (ii) fiscal countercyclicality has increased over time for many economies over the last two decades; (iii) discretionary and automatic countercyclicality are both strong in advanced economies but acyclical (at times procyclical) in low-income countries; (iv) fiscal countercyclicality operates primarily through the expenditure channel, particularly for social benefits; and (v) better financial development, larger government size and stronger institutional quality are associated with larger countercyclical effects of fiscal policy. Our results are robust to various specifications and endogeneity checks.

Economic freedom and banks' risk-taking in Japan: a tale of two sides

PurposeThis study examined how economic freedom and its related components, such as open markets, regulatory efficiency, rule of law and the size of government, affect bank risk behavior, focusing on the Japanese context.Design/methodology/approachThe study employs a two-step GMM framework on the annual data of Japanese banks ranging from 2005 to 2020 to empirically test the hypotheses. Furthermore, we also use the ordinary least square method to ensure the robustness of our mainline findings.FindingsThe finding suggests that economic freedom increases the banks' risk-taking, thus making them fragile. The results also highlight that out of the four main subcomponents of economic freedom, regulatory efficiency and government size increase bank risk-taking, while the rule of law and open markets decrease banks' risk-taking. Additionally, we examine how the banks' specific characteristics affect the results by creating a subsample based on capitalization and liquidity ratios. Overall, the results are consistent with the baseline findings. Moreover, the results are robust to alternative proxy measures of risk.Practical implicationsThe study's findings have several implications for regulators and policymakers. The results suggest that regulators and policymakers should reconsider their strategies for economic freedom to ensure that they promote stability in the banking system and reduce banks' risk-taking inclinations.Originality/valueAlthough previous studies have examined the impact of economic freedom on bank stability and risk-taking, this study is the first to do so in the Japanese context, contributing to the literature by providing new insights and empirical evidence.

The implications of economic freedom and gender ideologies on women's opportunity-to-necessity entrepreneurship

PurposeThis study explores the relationship between economic freedom and gender ideologies on the allocation of women’s opportunity-to-necessity entrepreneurship across countries. Opportunity entrepreneurship is typically understood as one’s best option for work, whereas necessity entrepreneurship describes the choice as driven by no better option for work. Specifically, we examine how economic freedom (i.e. each country’s policies that facilitate voluntary exchange) and gender ideologies (i.e. each country’s propensity for gendered separate spheres) affect the distribution of women’s opportunity-to-necessity entrepreneurship across countries.Design/methodology/approachWe construct our sample by matching data from the following country-level sources: the Global Entrepreneurship Monitor’s Adult Population Survey (APS), the Fraser Institute’s Economic Freedom Index (EFI), the European/World Value Survey’s Integrated Values Survey (IVS) gender equality index, and other covariates from the IVS, Varieties of Democracy (V-dem) World Bank (WB) databases. Our final sample consists of 729 observations from 109 countries between 2006 and 2018. Entrepreneurial activity motivations are measured by the ratio of the percentage of women’s opportunity-driven total nascent and early-stage entrepreneurship to the percentage of female necessity-driven total nascent and early-stage entrepreneurship at the country level. Due to a first-order autoregressive process and heteroskedastic cross-sectional dependence in our panel, we estimate a fixed-effect regression with robust standard errors clustered by country.FindingsAfter controlling for multiple macro-level factors, we find two interesting findings. First, economic freedom positively affects the ratio of women’s opportunity-to-necessity entrepreneurship. We find that the size of government, sound money, and business and credit regulations play the most important role in shaping the distribution of contextual motivations over time and between countries. However, this effect appears to benefit efficiency and innovation economies more than factor economies in our sub-sample analysis. Second, gender ideologies of political equality positively affect the ratio of women’s opportunity-to-necessity entrepreneurship, and this effect is most pronounced for efficiency economies.Originality/valueThis study offers one critical contribution to the entrepreneurship literature by demonstrating how economic freedom and gender ideologies shape the distribution of contextual motivation for women’s entrepreneurship cross-culturally. We answer calls to better understand the variation within women’s entrepreneurship instead of comparing women’s and men’s entrepreneurial activity. As a result, our study sheds light on how structural aspects of societies shape the allocation of women’s entrepreneurial motivations through their institutional arrangements.

Political Polarization, State Color, and Your Health

ABSTRACT Political polarization in the United States is not a recent phenomenon. States are now often described as “red” or “blue” based on how voters predominately voted in the Presidential and other statewide elections. These differences now seem to have generated into values considerations oriented around social characteristics and beliefs about the size and role of government in society, with corresponding relationships to health behaviors. At no time perhaps was this more apparent than during the COVID-19 pandemic. Building on earlier research that ranked states on how hazardous or health promoting they are to the health of the citizenry, the authors attempted to further determine if any relationship might exist between these variables and how each state voted in the 2020 Presidential election. Of those states that ranked in the top 25 in earlier research on the multiple variables related to the actual causes of death, 5 are red states (voting Republican) and 20 are blue states (voting Democrat). While the authors acknowledge that clearly multiple factors are involved that center on differing values, this examination suggests that blue states ranked better on these measures.

Connecting founding and dissolution: A demographic study of the US nonprofit sector

AbstractDespite a rich literature on nonprofit density, the founding and dissolution of nonprofit organizations remains poorly understood. This study explores the founding and dissolution in nonprofit populations including density dependence, resource concentration, government size, and hypothesizes that dissolution creates an entrepreneurial opportunity. The hypotheses are tested using county level data covering the continental US from 2010 to 2016 (N = 21,756). The results show government size, competition, and resource concentration are important for understanding founding and dissolution, and establishes strong support for a link between the events: a one standard deviation increase in the number of dissolutions in a county predicts an increase of 1.5% (CI: .72–2.31) in the nonprofit founding rate. The study highlights ways for public officials to support nonprofit entrepreneurship and calls for renewed interest in ecological applications in contemporary nonprofit populations.

Underperforming reformers: Examining disappointing cases of economic reforms

AbstractWhile pro‐market economic institutions are a strong and causal predictor of economic development, such institutions are not expected to have the same impact across countries. Furthermore, there are actually a few instances where countries that enacted market‐friendly reforms had negative economic growth soon after. Examining 49 cases of large and sustained increases in economic freedom over a five year window, we find 10 cases that were followed by low/negative economic growth thereafter. We consider various potential determinants of failed reforms by comparing different measures between the successful and failed reforming countries. Our strongest evidence points to the following as plausible reasons for failed reforms: culture (high levels of power distance, low levels of individualism, and low levels of generalized trust), areas of economic freedom that countries reformed (less focus on sound monetary policy, more focus on limiting the size of government, and more variance between the five areas), and autocratic political institutions.

Local information and the stabilization role of local government: Evidence from a natural experiment in China

AbstractOates, (1972) argues that local governments cannot use conventional policies to stabilize economies, due to fiscal spillovers and beggar‐thy‐neighbor policies. Hayek's theory implies it is efficient for a central government to devolve decision‐making authority to local governments that have informational advantages. This paper tests the different theoretical implications by examining a natural experiment caused by the income‐tax‐sharing reform in China. Our analysis reveals that local government size does have a stabilization effect, but vertical fiscal imbalance (VFI) substantially weakens this stabilizing effect; lack of local information is the key factor leading to this influence of VFI.