Increase In Public Expenditure Research Articles

Carbon Emission Intensity Characteristics and Spatial Spillover Effects in Counties in Northeast China: Based on a Spatial Econometric Model

Under the “double carbon” target, it is important to reduce carbon emissions in each region. Using exploratory spatial data analysis (ESDA), the center of gravity method, and spatial econometric models, we analyzed the characteristics and spatial spillover effects of carbon emission intensity in counties in Northeast China from 2000 to 2020 and made recommendations to the government for more reasonable carbon reduction strategies in order to achieve sustainable development. The results were as follows: (1) Since 2000, the carbon emission intensity in Northeast China has increased after first declining, and the carbon emission intensity in the western and northern regions of Northeast China has increased faster than Northeast China’s average. (2) After 2000, the spatial aggregation of carbon emission intensity has improved in Northeast China. (3) Northeast China’s carbon emission intensity has a positive spatial spillover effect. Through the feedback mechanism, the growth in population size, the rise in economic development level, the level of industrialization as well as the rise in living standard, the land use structure dominated by arable land and construction land, and the increase in urbanization level in the region will cause the carbon emission intensity in the surrounding areas to increase. An increase in public expenditures leads to a decrease in carbon emission intensity in the adjacent area. (4) When the vegetation cover exceeds its threshold value, it can have a larger inhibitory influence on carbon emission intensity. To summarize, each county in Northeast China is a carbon emission reduction community, and policymakers must consider the spatial spillover effect of carbon emission intensity when developing policies.

Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

The economic growth-public expenditure relationship is one of the important subjects that both policymakers and scientists focus on during extraordinary conditions such as economic crises, natural disasters or epidemics. Despite the privatization practices and the efforts to adopt the minimal state approach proposed by neoliberalism, which have become widespread significantly since the 1970s, public expenditures increase the interest in the subject. The study analyses the validity of the Keynesian approach, which argues that public expenditures are a fiscal policy tool that supports economic growth, in G-20 countries, as opposed to Wagner's approach, which argues that economic growth is the reason for the increase in public expenditures. The analysis was carried out with the Pesaran CCEMG estimator, which considers cross-sectional dependence and heterogeneity, using annual data from 1994-2017. According to the findings, it could be stated that Wagner's Law is not valid in G-20 countries because the slope coefficient does not fulfil the condition of being more significant than 1, whereas the Keynesian approach is valid. Moreover, a bidirectional causality was discovered between economic growth and public expenditures. Consequently, public expenditures can be used as an effective fiscal policy tool to eliminate economic instabilities under political, economic, or extraordinary conditions such as COVID-19.

Investigation of the Effects of Economic Indicators on Child Mortality: Panel Data Analysis

The health level of society is an indicator of the development as a whole, and it is monitored through various indicators. Among these indicators, infant and child mortality are followed by both countries and international organizations. The purpose of this study is to determine what effect economic variables have on child mortality. A Panel data analysis was used as a method in the study. Eviews 10.0 and Stata 15.0 package programs were used for data analysis. While the research universe is composed of 132 countries in the middle-upper income and high-income groups in the World Bank classification; The sample of the research consists of 49 countries whose data are taken. The time dimension of the study constitutes the 2000-2019 periods and the data types of the variables were used annually. While variables representing child mortality are used as dependent variables in the study; Gini index value representing income distribution, Gross Domestic Product, per capita income, public expenditure level, and the unemployment rate were used as independent variables. As a result of the research, it has been revealed that there is a positive relationship between the unemployment rate and income inequality and under-five mortality and neonatal deaths. Also, it has been observed that there is a negative relationship between the increase in public expenditure, per capita income and the level of Gross Domestic Product, and under-five mortality and neonatal deaths. It has been observed that the neonatal mortality rate is affected by economic variables more than the under-five mortality. In this context, it has been revealed that economic indicators are significantly related to child mortality.

Empirical Analysis of the Impact of Education on Economic Growth

Education is a crucial factor for sustainable economic growth. Therefore, public expenditures on education are of great interest to both researchers and policy makers. The channels through which education affects economic growth differ according to the level of development of the country. This study aims to measure the impact of public expenditure on education for economic growth in North Macedonia. The data used are secondary data derived from the World Bank Indicators for the period 1917–2020. The econometric model employed in this study is an Instrumental Variable Two-Stage Least Square. The dependent variable in the model is Gross Domestic Product and the independent variables in the model are public expenditures on education, labor force participation rate, gross capital formation, unemployment, industry, wages, employment, information, and communication technology, and the instrumented variable is tertiary enrolment. This study suggests that a one-point increase in public expenditures on education will positively affect economic growth in the North Macedonia. The study also shows that a one-point increase in unemployment will increase economic growth and a one-point decrease in employment will increase economic growth in North Macedonia. These two results, which contradict the theoretical and empirical approaches, prove the mismatch between the supply and demand of real occupations in the labor market in North Macedonia.

Covid-19 – the impetus for public service innovation. Advancing the shift towards social procurement

With the present and future being shaped by the Coronavirus disease and worldwide responses to it, critical insights are essential. The Covid-19 pandemic has profoundly influenced the lives of most people on the plane as well as the global market, some experts believing it has caused the worst economic decline since the Great Depression. The pandemic found States unprepared to face the challenges brought by it, it has exposed the vulnerabilities of individuals, societies and economies. A few months after the sparking of the first wave of Covid-19 it was possible to assess the earliest public intervention and to foresee how the virus is going to impact economic and social systems. Given the significant increase in public expenditure since the beginning of the pandemic, this Article will articulate and explore the role of public procurement in anticipating the risk of market failure, despite the complicated environment. Likewise, focus will be drawn upon the EU soft law instruments designed to respond to economic and public health issues, through the prism of solidarity. The Article will then focus on the analysis of the Italian response to the pandemic through public purchasing techniques.

Impact of Corona Virus on African Economic Growth

The COVID-19 crisis is affecting the entire world economy and that of Africa. Some key sectors of the African economy are already experiencing a slowdown because of the pandemic. Tourism, air transport, and the oil sector are visibly impacted. The exogenous effects come from direct trade links between affected partner continents such as Asia, Europe and the United States; tourism; the decline in remittances from African Diaspora; Foreign Direct Investment and Official Development Assistance; illicit financing flows and domestic financial market tightening, etc. The endogenous effects occur because of the rapid spread of the virus in many African countries. On one hand, they are linked to morbidity and mortality. On the other hand, they lead to a disruption of economic activities. This may cause, a decrease in domestic demand in tax revenue due to the loss of oil and commodity prices coupled with an increase in public expenditure to safeguard human health and support economic activities. This study aims to evaluate the potential impact of the pandemic on various dimensions of African economies, the impact on the African economy is presented, with a discussion of some of the key measures being taken by African Union to mitigate the negative effects.

Tax evasion and government size: evidence from Italian provinces

We analyze the impact of government size, measured by total spending per capita, on tax evasion at the provincial level in Italy over the period 2001–2015. In order to solve endogeneity issues we rely on a system GMM and find that public expenditure negatively affects tax evasion, as taxpayers perceive the government is efficiently spending resources coming from the tax levy. Results are confirmed when we (1) consider expenditures related to long-term investments, namely capital spending per capita, and (2) directly test the impact of government efficiency on tax evasion. In addition, we show that the impact of public spending is heterogeneous across geographical areas: an increase in public expenditure leads to a downward shift in tax evasion only in the northern part of Italy, characterized by a relatively larger initial level of public goods provision.

Evidential Analysis of Terrorism and I-VEO Knowledge Matrix in the Context of Security as Pure Public Good: The case of Pakistan from 1990 to 2010

The case of Pakistan has presented if security provision is a pure public good in the light of the I-VEO Knowledge Matrix hypotheses. Evidential analysis of the data from 1990 to 2010 from the Global Terrorism Database (GTD) suggests that terrorism incidents are not reduced with the increase of public expenditure on defence, and instead, more fatalities and injuries are witnessed during the years. The analysis is based in isolation to terrorist attacks, defence expenditure and relating hypotheses of Influential Violent Extremists Organization Knowledge Matrix (I- VEO Knowledge Matrix) and counterterrorism operations, at ceteris paribus. The I-VEO Knowledge Matrix shows there is a lack of a comprehensive set of strategy based on the collection of relevant hypotheses more productive than the existing and likely less effective counterterrorism strategies to ensure security provision as a pure public good in the case of Pakistan

How fiscal policies affect energy systems: the importance of an ‘environmental social wage’

ABSTRACT We employ a regional computable general equilibrium model to measure the impact on CO2 emissions of a balanced-budget increase in public environmental expenditure. We identify conditions under which an economic stimulus accompanied by a reduction in emissions could occur. Our results suggest that this is conceivable if the population values the environmental amenity funded by the increase in public expenditure, and if this is reflected in wage-bargaining behaviour. Given increasing concerns over climate change, public spending on environmental improvement could attract support together with the establishment of an ‘environmental social wage’, where workers accept lower pay in return for that improvement.

The Relationship Between Education Outputs, Education Expenditure, and Economic Growth in Saudi Arabia

The present study investigated the relationship between education outputs, Education expenditure, and economic growth in Saudi Arabia for the time period of 1986–2016. The results obtained after employing the Autoregressive Distributed Lag (ARDL) model revealed a long-term relationship between the studied variables, an inverse relationship between the number of graduates and growth in the long term, whereas a non-significant positive relationship appeared in the short -term. Findings indicate also that public spending in education has a positive and significant impact on economic growth in the long run. Furthermore, he observed that a 1% increase in public expenditure in education contributes 18% increase in GDP per capita in the long run. This is in line with economic theory and previous research showing that expenditure on education leads to a rise in GDP per capita and economic growth rates. The recommendations of this study are fundamental to the Kingdom of Saudi Arabia.

Vplyv fiškálnych pravidiel na úroveň ekonomického rastu v monetárnych úniách

The present paper deals with the impact of supranational fiscal rules on economic growth through optimal government size and the BARS curve in monetary unions. Monetary unions introduce supranational fiscal rules to ensure fiscal sustainability of public finance and to eliminate the presence of free-riders in these country groupings. The main objective of the paper is therefore to illustrate how compliance with the supranational fiscal rules affects the level of economic growth under the conditions of the existence of the BARS curve in monetary unions. The paper confirms the existence of the BARS curve. It makes a quantification of the optimal government size in the East African Monetary Union (26.96% of GDP) and a subsequent identification of years when supranational fiscal rules prevented increase in public expenditures via debt financing and thus counteracted the decline in economic growth.

Koronavirüs (Covid-19) Salgınının Ekonomi ve Kamu Maliyesine Etkilerinin Kümeleme Analizi İle İncelenmesi

2019 yılının Aralık ayında Çin’de ortaya çıkan Covid-19 salgını, kısa bir süre içerisinde dünyanın tamamına yakınını etkilemiştir. Geçen zamanda ekonomide birçok sektörde daralmalar ortaya çıkmış, neticesinde çoğu ülkede yüksek işsizlik ve enflasyon oranları görülmeye başlanmıştır. Salgınla mücadelede sağlık sektörünün artan giderleri, kamu harcamalarında yüksek oranda artışlar meydana getirmiştir. Kamu harcamalarının finansmanı için borçlanma ve para arzını genişletme yolunu tercih eden çoğu ülkede, enflasyon oranında artışlar görülmüştür. Bu çalışmada, dünyanın en büyük yirmi ekonomisi, makroekonomik veriler ve kamu maliyesi göstergelerinden yola çıkılarak karşılaştırılmıştır. Bu bağlamda Covid-19 salgını öncesi, salgının başlangıç dönemi ve salgının başlangıcından sonraki dönem olmak üzere üç farklı zaman dilimi Hiyerarşik Kümeleme Analizi ve Hiyerarşik Olmayan Kümeleme Analizi yöntemlerinden K-Ortalamalar metodu kullanılarak ayrı ayrı incelenmiştir. Bulgularda, makroekonomik göstergelerle elde edilen kümelerde, kamu maliyesi göstergeleri ile elde edilen kümelere göre ilgili dönemler arası ülke geçişlerinin daha fazla olduğu görülmüştür. Ayrıca Türkiye’nin makroekonomik, Japonya’nın ise kamu maliyesi göstergeleri açısından her dönemde tek başına bir küme oluşturduğu ve diğer ülkelerden ayrıştığı saptanmıştır.

Budgetary efficiency expressed as the interdependence of public expenditures and the Gross Domestic Product in the Republic of Moldova

Abstract We address budget performance in terms of savings, efficiency, and effectiveness. To facilitate a quantitative analysis of budgetary efficiency, we perform a detailed study based on an econometric model of the interdependence of public expenditure, both capital and private, and GDP. We show that an increase in public expenditure, especially current, can significantly accelerate the growth of the productive sectors of the economy. Further, the implementation of performance indicators for public expenditure can lead to accelerated economic growth, both quantitatively as well as qualitatively, in the Republic of Moldova.

Relationship between adaptation to climate change and provincial government expenditure in Pakistan.

Public expenditures on adaptation to climate change have direct effects on budgets of governments. Such direct impacts on government budgetary allocation have been analyzed in the developed countries and very little research is available considering highly vulnerable and exposed developing countries which are facing huge threats of climate change. The current study is designed to bridge this information gap by examining the effects of climate change adaptation on public expenditures in Pakistan employing provincial level data over the period of 1990-2016. Adaptation expenditures included both overall government expenditures and expenditures on communal amenities and housing. In addition to a fixed effects estimation, we employed long difference model to analyze the impact in the long run. Results indicated that variations in temperature and rainfall were significantly related with public expenditures. Short run and long run scenarios showed that rising temperature caused an increase in public expenditures. The effect of rainfall on total public expenditure was positive and statistically significant while rainfall and expenditure incurred on communal amenities and housing were negatively related in the long run. The study posits important policy implications.

THE IMPACT OF INTELLECTUAL FACTORS IN ECONOMIC DEVELOPMENT OF A COUNTRY: A CLUSTER ANALYSIS

Abstract. The engine for the development of countries is the accumulation and use of intellectual resources. At the same time, there is considerable scientific interest in the question of which intellectual factors are key to ensuring the development of different countries. The purpose of the analysis is to identify the relationship between resource and performance indicators of intellectualization and GDP dynamics of the country. The resource indicators include: human; financial; intellectual. The following set of indicators relates to the results of intellectual activity already obtained, which should be divided into educational and scientific ones; infrastructure; technological. A cluster analysis of the countries characterized by decisive development trends was made in order to identify and summarize existing dependencies. In total, 44 countries were selected for the study, which are rather heterogeneous in terms of their socio-economic development and geopolitical position.The econometric analysis identified 3 groups of countries characterized by high (cluster 1), medium (cluster 2) and low (cluster 3) GDP per capita during 2005—2015. The 4th Cluster includes rapidly developing Asian emerging countries — China, Hong Kong, Singapore, India, and the Republic of Korea. The economic modelling of impact of resource and resulting factors on the level of economic development is carried out separately for each cluster. As a result of the simulations, the following regularities were revealed for each cluster. For first cluster countries the most significant impact on GDP growth is exerted by the government’s expenditures on education and the research staff growth. For the second cluster countries growth in expenditures on education by 1% leads to a 1% increase in GDP. The third cluster countries are experiencing a significant positive impact from rising expenditures on education in general and on higher education in particular. The fourth cluster countries are experiencing a significant positive impact from the increase in research staff and the increase in public expenditures on higher education. Characteriс of intelligent models of countries of different clusters allows to make realistic prognostic scenarios of their development, taking into account both changes of separate components of model, and efficiency of various economic measures and tools. Keywords: intellectual leadership, leadership, knowledge economy, intellect, human capital, assessment of intellectual leadership. JEL Classification I23, I25 Formulas: 19; fig.: 2; tabl.: 11; bibl.: 9.

The Effect of Private Investment on Public Expenditure in the CFA Franc Zone

This paper investigates the effect of private investment on public expenditure in the CFA franc zone during the period 1980-2015. To attain this objective, the methodology adopted is the system Generalized Method of Moments (GMM). The result shows a positive and significant effect of private investment on public expenditure. This result thus justifies that private investment is an important source of increase in public expenditure. This result implies that public policies for improving private investment should be promoted: improving the business climate, improving the quality of institutions, ameliorate political environment, fight against terrorism ravaging part of Africa including Mali.

FISCAL POLICIES AMID A PANDEMIC

This paper investigates qualitatively and quantitatively the fiscal policies adopted in Italy in response to the COVID-19 crisis. We assess the rationale of the policies in light of the characterizing features of the business and household sectors and of the state of public budgets. We then evaluate the impact of the policies through a calibrated model of the Italian economy featuring a comprehensive specification of taxes, transfers, and subsidies. The quantitative analysis suggests that the policies reduced the gross domestic product (GDP) impact of the COVID-19 shock by 25 percent at the peak of the crisis. Alternative fiscal stimulus plans tilted toward a larger reduction of corporate taxes, and stronger increases in public expenditures could have achieved a sharper attenuation of the GDP drop but would have been less desirable from a distributive perspective or for the dynamics of public finances.

Do We Spend Too Much on Medications?

The Government recently announced that the problem of debts of hospitals to wholesale pharmacies is about to be solved in a systematic manner. The present press release, after presenting a short analysis of the consumption of medications in Croatia, highlights the necessity of recording more detailed and transparent statistical data on expenditures in the Croatian healthcare system, primarily in hospital care. Apart from this, we should analyse the market of particularly expensive medications and explore how the constant increase of public expenditure for medications can be controlled without undermining the quality of healthcare.

A new innovation paradigm: European cohesion policy and the retreat of public science in countries in Europe's scientific periphery

AbstractThis article seeks to undertake a critical assessment of the changing position of public science in the entrepreneurial ecosystem of the countries on the periphery of European research. These countries are driven by new innovation paradigm based on entrepreneurship, which are implemented within the European Smart specialization strategy (S3). This article argues that S3 is widely implemented in the cohesion countries and, while it provides substantial resources for science, technology, and innovation, it fails to provide sustainability in the public research sector. This has direct implications for policies concerning innovation and entrepreneurial ecosystems. In order to prove the thesis, the article provides theoretical argumentation for emergence of a new innovation paradigm, driven by the rise of the entrepreneurial ecosystem, its incorporation into S3, and a consequent retreat of science policy in favor of entrepreneurial policy. The empirical analysis is focused on the funding trends seen in the business and public research sectors over the last decade (2008–2017), which have clearly shown that S3 has not contributed, despite expectations, to an increase in public expenditure for science. This signifies S3's neglect of public research within entrepreneurial ecosystems and challenges the ability of S3 to reduce wide disparities in research and innovation performance across the European Union. This ultimately endangers the innovation potential of the entrepreneurial ecosystem itself.

Wpływ wydatków budżetowych na zmniejszanie ubóstwa w Polsce

Problem ubóstwa i wykluczenia społecznego stał się niezwykle ważny w następstwie kryzysu finansowego i gospodarczego z 2008 roku. Opracowanie koncentruje się na ocenie wdrażanych instytucjonalno-prawnych form pomocy w Polsce. Głównym celem opracowania jest identyfikacja rodzajów wydatków budżetowych związanych z analizowanym zagadnieniem i zbadanie zależności pomiędzy wydatkami z budżetu państwa na realizację zadań związanych z pomocą społeczną a zasięgiem ubóstwa w Polsce. W rezultacie przeprowadzonych badań z wykorzystaniem analizy statystycznej stwierdzono, że wzrost wydatków publicznych wpływa na poziom ubóstwa w Polsce zmniejszając jego zasięg. W ramach wniosków płynących z badań odnotowano, że liniowe zależności między wydatkami z budżetu państwa w działach dotyczących pomocy społecznej i rodziny a dwoma zmiennymi zależnymi będącymi wskaźnikami ubóstwa (skrajnego i relatywnego) są statystycznie istotne i są to zależności silne bądź umiarkowane.