Local Government Investment Research Articles

Assessment of The Sustainable Financial-Aspect of Polders in The Province of DKI Jakarta

Assessment of the financial aspects of polders was undertaken with a Sustainable Financial Model (SFM) application to analyze individual polders in the Province of DKI Jakarta in order to find better local values which in turn can improve the general baseline. This assessment was conducted in the polders of Muara Karang, Pluit, Pulo Mas and Duri Kosambi. Among the baseline values which critically needed to be adjusted was the segment of Gov_bdg>>Sust.Inf. Two scenarios were evaluated: (i) regular-type and (ii) NPCE-type. The method of assessment used SEM with PLS as a statistical approach to analyze the data. Overall, the results indicated that the more cooperative and integrated NPCE approach to Local Government investment in polder management was more likely to have positive effects. Keywords: Jakarta; polder; financial

The cohesion fund’s role in financing local-government investments in road infrastructure

The growing needs of local communities, deficiencies in road infrastructure, and under-investment in the public sector has led to the search for alternative sources of project financing. Poland’s accession to European Union structures has opened the possibility of obtaining co-financing from EU funds for various types of projects. Aid can be obtained from several types of funds, mainly intended for investments in economic development. Investments in the field of transport carried out by local-government units have been supported by funds from the European Union budget over two six-year financial perspectives: 2007-2013 and 2014-2020. During this time, funds were allocated to local governments to compensate for differences, expand the road network, and to improve the quality of transport. The authorities of individual territorial local-government units received support from structural funds and cohesion policy funds. In return, they were able to count on benefits such as financing for services and road infrastructure facilities that meet the needs of the community, and access to new technologies.

Capital Investment Behavior of Local Government in Regional Development Bank (BPD) in Indonesia

Capital investment of local government or long-term regional investment is a form of government program and one of the tools of regulating the regional fiscal. Local government investment in the form of direct investment is the capital investment in business entities which aims to increase regional economic growth, increase regional income, and improve the welfare of the community. Regional capital investment is a decision-making behavior to invest or not to invest in business entities to obtain dividends. The behavior of decision making requires Information on bank performance, knowledge of banking governance, and shareholder agreements with bank directors. This study aims to analyze performance behavior and investment of provincial government that affects the profit of regional development banks in Indonesia. The method of analysis is done using descriptive statistic and multiple linear regression. Multiple Linear Regression with dependent variable of regional development bank profit and independent variable consist of Bank size (SIZE), business risk of BPD bank (RISK_Bt), Capital Adequacy Ratio (CAR), Operational Cost to Operating Income (BOPO), Return of Equity (ROE), Interest Rate of Bank (INTEREST), Provincial Capital Investment to Bank BPD (PMD), Regional Minimum Wage (UMR), Initial Public Offering Dummy (DIPO), and Bank Business Target Dummy (DSARBISB). The result of descriptive statistical analysis concluded that the capital investment of 26 provincial governments in 26 regional development banks describes the varying bank performance caused by different bank sizes. The results of multiple regression analysis can conclude that all independent variables are able to both explain the dependent variable at a significant level of level below 1%, as well as individually ten independent variables that are statistically significantly different with zero at levels below 1%, below 5%, and below 10%.

Provincial Market Opening, Local Government Investment and Manufacturing Structure Differences in China

The convergence of manufacturing structure reduces the efficiency of resource allocation, which is a conundrum that has plagued China from a big manufacturing country to a manufacturing power for a long time. Using the panel data of manufacturing in 30 provinces and cities in China from 2000 to 2014, this paper empirically examines the game between market mechanism and government intervention in the optimal allocation of resources from the perspective of manufacturing structure differences. For the results of the entire sample, there is a U-shaped relationship between the opening of the international market and manufacturing structure differences, and after the opening of international market reaches a certain critical value, it will be conducive to manufacturing structure differences; domestic market opening optimizes the allocation of resources, showing a significantly positive relationship with manufacturing structure differences. On the contrary, local government investment has distorted the allocation of resources and has hindered manufacturing structure differences. The results of sub-regional estimation show that the opening of the domestic market has played an important role in promoting manufacturing structure differences in the eastern, central and western regions, showing the strong robustness, while the influences of international market opening and local government investment have distinct space differences. The market force in the eastern region shows greater effect than the government power on promoting manufacturing structure differences, and the government policy dependence in western region is more prominent. Further study finds that the role of the opening of the provincial market in promoting manufacturing structure differences has been undermined by local government investment because in the interaction between the opening of the provincial market and local government investment, both of they are mutually constrained.

The Political Economy of Unfinished Development Projects: Corruption, Clientelism, or Collective Choice?

Development projects like schools and latrines are popular with politicians and voters alike, yet many developing countries are littered with half-finished projects that were abandoned mid-construction. Using an original database of over 14,000 small development projects in Ghana, I estimate that one-third of projects that start are never completed, consuming nearly one-fifth of all local government investment. I develop a theory of project noncompletion as the outcome of a dynamically inconsistent collective choice process among political actors facing commitment problems in contexts of limited resources. I find evidence consistent with key predictions of this theory, but inconsistent with alternative explanations based on corruption or clientelism. I show that fiscal institutions can increase completion rates by mitigating the operational consequences of these collective choice failures. These findings have theoretical and methodological implications for distributive politics, the design of intergovernmental transfers and aid, and the development of state capacity.

Infrastruktura społeczna a zaspokojenie potrzeb mieszkańców gminy Stryków

Gmina Stryków to jedna z najszybciej rozwijających się gospodarczo gmin w Polsce. Jednakże, wraz z rozwojem gospodarczym nie jest współmierny rozwój infrastruktury społecznej, która odgrywa ważną rolę w funkcjonowaniu społeczności lokalnych i ma istotny wpływ na zaspokajanie potrzeb mieszkańców. W związku z powyższym, w lipcu 2017 roku na terenie gminy Stryków przeprowadzone zostały badania sondażowe, które pozwoliły badaczom pozyskać informacje na temat wiedzy mieszkańców o inwestycjach samorządowych zrealizowanych w ostatnich pięciu latach. W trakcie badań respondenci mieli również możliwość wskazania swoich potrzeb w zakresie infrastruktury oraz dostępności do usług. Na podstawie odpowiedzi ankietowanych zauważyć można, że w przestrzeni widzą oni głównie inwestycje związane z infrastrukturą techniczną, a nie społeczną. Natomiast brakuje im w niej głównie kompleksów sportowo-rekreacyjnych, które są elementem infrastruktury społecznej. Wyniki przeprowadzonych badań pozwolą na lepszą identyfikację potrzeb mieszkańców, a w późniejszym czasie również na trafniejsze ich zaspokajanie przez władze lokalne.

The impact of local government investment on the carbon emissions reduction effect: An empirical analysis of panel data from 30 provinces and municipalities in China.

Among studies of the factors that influence carbon emissions and related regulations, economic aggregates, industrial structures, energy structures, population levels, and energy prices have been extensively explored, whereas studies from the perspective of fiscal leverage, particularly of local government investment (LGI), are rare. Of the limited number of studies on the effect of LGI on carbon emissions, most focus on its direct effect. Few studies consider regulatory effects, and there is a lack of emphasis on local areas. Using a cointegration test, a panel data model and clustering analysis based on Chinese data between 2000 and 2013, this study measures the direct role of LGI in carbon dioxide (CO2) emissions reduction. First, overall, within the sample time period, a 1% increase in LGI inhibits carbon emissions by 0.8906% and 0.5851% through its influence on the industrial structure and energy efficiency, respectively, with the industrial structure path playing a greater role than the efficiency path. Second, carbon emissions to some extent exhibit inertia. The previous year’s carbon emissions impact the following year’s carbon emissions by 0.5375%. Thus, if a reduction in carbon emissions in the previous year has a positive effect, then the carbon emissions reduction effect generated by LGI in the following year will be magnified. Third, LGI can effectively reduce carbon emissions, but there are significant regional differences in its impact. For example, in some provinces, such as Sichuan and Anhui, economic growth has not been decoupled from carbon emissions. Fourth, the carbon emissions reduction effect in the 30 provinces and municipalities sampled in this study can be classified into five categories—strong, relatively strong, medium, relatively weak and weak—based on the degree of local governments’ regulation of carbon emissions. The carbon emissions reduction effect of LGI is significant in the western and central regions of China but not in the eastern and northeast regions. This study helps overcome the limitations of previous studies on the regulatory effects of LGI on carbon emissions, and the constructed model may more closely reflect actual economic conditions. Moreover, the current study can benefit countries similar to China that aim to objectively identify the impacts of their LGI on carbon emissions, and such countries can use it as a reference in the formulation of investment policies based on their economic and industrial characteristics.

Macroeconomic policy coordination between Japanese central and local governments

It is commonly believed that public investments play a central role in Japan’s discretionary fiscal policies, but the majority is implemented by local governments. After distinguishing between public investment by the central government and that by local governments, this paper utilizes wavelet techniques to examine macroeconomic policy coordination between Japanese central and local governments. We demonstrate that local government investments fail to coordinate with central government investments during the lost two decades, and such a coordination failure is a one-time phenomenon in nearly a half-century. In this period, local government investments exhibit no countercyclical behavior to business cycles, which is contributory to the ineffectiveness of fiscal stimulus that is pointed out by our predecessors.

Institutional drivers of adaptation in local government decision-making: evidence from Chile

We study how the local institutional context shapes local government decisions about responses to perceived threats of natural disasters and climatic change. We draw on institutional theories and field observations to develop hypotheses about the effects of municipal institutional arrangements, social capital, and multilevel governance. To test these ideas, we analyze a unique dataset with over-time observations for almost all local governments in Chile. Our analysis shows multiple institutional conditions supporting proactive local adaptation: municipalities with relatively robust institutional settings tend to devote more resources to environmental risk management and adaptation. We use our quantitative model to show that altering institutional settings can make a difference for increasing local government investments in this area. Although few local governments in Chile currently enjoy favorable institutional conditions for risk reduction and adaptation, our findings identify ways through which external actors may contribute to a more propitious institutional climate.

PERANAN SEKTOR PUBLIK LOKAL DALAM PERTUMBUHAN EKONOMI REGIONAL DI WILAYAH SURAKARTA (1987-2000)

This paper’s aim is to explain the role of the local public sectors in regional economic growth in Ex-Residency of Surakarta. The question we ask in this paper is whether local taxes and local expenditures affect regional economic growth in Ex Residency of Surakarta. This question is very important in two respect. First, It would be especially interesting to know whether local government taxes and/or expenditures have had an impact on regional economic growth. An alternative view argues againts any such impact. Second, as local autonomy will soon be granted, local government need to understand the mechanism by which local taxes and expenditures affect the regional economy.The major finding in this paper area as follows. The role of local government in regional economic growth has been very significant. Local taxes and local revenues have a significant negative effect on local regional economic growth, while local government investment have a significant positive effect on regional economic growth. On the other hand, Local government consumption and labor force have no significant effect on regional economic growth. One of the crusial policy implication of this paper is that we must enhance the role of local government, local autonomy having been recently introduced. More specifically, the central government should transfer more revenue sources to its lower level local government through. For example, revenue sharing of national taxes.Keywords: local public sector, regional economic growth, regional economic gap.

Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model

This paper examines the relationship between the efficiency of government investment and the debt risk from a theoretical perspective. By building a DSGE model, we introduced the impact of government financial investment, and investigated the change of debt risk under different government investment efficiency. From the model, we observed a obvious reverse effect bwteen the the government investment efficiency and debt risk. Finally, according to research conclusions, we put forward some Suggestions.

Research on the Local Government Investment and Financing System Innovation and Risk Assessment under the New-Type Urbanization Background

At present, with the new urbanization as the background of the situation in our country, local governments in China especially in the central region as the representative of Henan Province, is to take this opportunity to create their own economic heights and industrial agglomeration, and constantly improve the level of urbanization of the original, but the town level cannot improve open the power of capital, the local government of is facing financing, financing platform, financing channels and financing policy and a series of financing systems caused by financing difficulties. Therefore, as the perspective of the local government, a new study of investment and financing system and the risk measure, can more effectively guide and encourage the existing capital city infrastructure and public services to improve the field.

O atendimento psicológico no Centro de Referência Especializado da Assistência Social e a visão de operadores do direito e conselheiros tutelares

Resumo Este estudo, de delineamento qualitativo, objetivou conhecer a percepção dos operadores do direito e conselheiros tutelares sobre o atendimento psicológico ofertado à criança e ao adolescente no Centro de Referência Especializado da Assistência Social. Através de entrevistas semiestruturadas, constatou-se que esse centro tem se constituído como um serviço de referência no encaminhamento e atendimento psicológico oferecido às vítimas de violência. O atendimento do profissional da Psicologia no âmbito da Assistência Social é considerado importante para a escuta de crianças e adolescentes em situação de violência. No entanto, o atendimento oferecido pelo município nem sempre contempla a demanda existente no local e, na maioria das vezes, é prestado de forma tardia. Dessa forma, ainda se faz necessário mais investimento dos gestores municipais na implantação de serviços e contratação de profissionais especializados para atender a população infanto-juvenil em situação de violência.

PENGARUH KARAKTERISTIK PEMERINTAH DAERAH TERHADAP KEPATUHAN PENGUNGKAPAN INVESTASI PEMERINTAH DAERAH (Studi pada Pemerintah Kabupaten/Kota di Pulau Jawa dan Sumatera)

This study aims to know the effect of local government’s characteristics, which are the local government’s administrative age, the size of its investments, the number of SKPDs (working units), the educational background of the head of the local government and intergovernmental revenues, on the compliance of local government investment disclosures and compare the compliance of local government investments disclosures between local governments in Java and Sumatera. The sampling method used is purposive sampling. The study sample consists of 102 district/city governments that report the Local Government Financial Statements for Fiscal Year 2013 and have been audited by the Indonesia’s Supreme Audit Board in 2014. This study uses multiple regression analysis and t-test procedure and also does the classical assumptions test including normality, autocorrelation, heteroscedasticity, and multicollinearity test using Statistical Package for the Social Sciences (SPSS). The results show that the local government’s administrative age has significant effect on the disclosure of local government investments, while the size of its investments, the number of SKPDs (working units), the educational background of the head of the local government and intergovernmental revenues have no significant effect on the disclosure of local government investments.
 
 Keywords: local government investment disclosures, local government financial statements, organizational theory, characteristics of an organization.

Religious beliefs and local government financing, investment, and cash holding decisions

Abstract This paper is the first to examine the association between religious beliefs and the local government financing, investment and cash holding decisions. Using a sample of 15,204 county-year observations for census years between 1992 and 2012, we show that the degree of religiosity is negatively associated with the level of local government debt and investments while it is positively associated with accumulated cash holdings. Our results indicate that local governments in counties with a higher degree of religiosity are more conservatively managed. To validate the main findings we conduct a range of robustness tests and demonstrate that our main results hold.

The Domino Effects of Federal Research Funding.

The extent to which federal investment in research crowds out or decreases incentives for investment from other funding sources remains an open question. Scholarship on research funding has focused on the relationship between federal and industry or, more comprehensively, non-federal funding without disentangling the other sources of research support that include nonprofit organizations and state and local governments. This paper extends our understanding of academic research support by considering the relationships between federal and non-federal funding sources provided by the National Science Foundation Higher Education Research and Development Survey. We examine whether federal research investment serves as a complement or substitute for state and local government, nonprofit, and industry research investment using the population of research-active academic science fields at U.S. doctoral granting institutions. We use a system of two equations that instruments with prior levels of both federal and non-federal funding sources and accounts for time-invariant academic institution-field effects through first differencing. We estimate that a 1% increase in federal research funding is associated with a 0.411% increase in nonprofit research funding, a 0.217% increase in state and local research funding, and a 0.468% increase in industry research funding, respectively. Results indicate that federal funding plays a fundamental role in inducing complementary investments from other funding sources, with impacts varying across academic division, research capacity, and institutional control.

Using MCDA to generate and interpret evidence to inform local government investment in public health

Smoking is the single biggest cause of preventable death in the Uited Kingdom (UK) and is a major cause of coronary heart disease, some cancers, and respiratory disease, including chronic obstructive pulmonary disease. At the time of initiating the project, smoking prevalence had not changed across four local government areas in South Yorkshire for some years. Most spending had been focussed on helping people quit, an intervention where there was clear evidence of effectiveness. A number of changes occurred in public health structures and targets, requiring a reappraisal of the range of interventions offered. This was challenging due to a lack of clear evidence for some of the areas’ alternative interventions. The aim of this paper is to describe the use of a multi-criteria decision analysis (MCDA) approach to support the health priority setting in local authorities to reduce smoking prevalence. There were three phases to this process: (1) problem structuring; (2) the multiple criteria decision analysis; (3) and using the MCDA results to influence decision making at the local government level. The MCDA approach was used to collate information in a consistent and transparent manner, using expert, stakeholder and public opinion to fill known gaps in evidence. Fifteen interventions (such as stop smoking support services, smoke-free spaces, communication and marketing exercises, and increased investment in enforcement) were ranked across eight criteria (relating to reductions in prevalence across relevant groups, as well as aspects relating to equity and feasibility), allowing a range of relevant concerns to be incorporated. Subsequent steps were taken to translate the results of this stage into workable policy options. The results differed significantly from current practice. Sensitivity analysis showed that the findings were robust to changes in preference weights. These results informed subsequent changes to the interventions offered across the four boroughs. The ability of MCDA techniques to incorporate data and both qualitative and quantitative judgements in a formal manner mean that they are well suited to support public health decision making, where evidence is often only partially available and many policies are value driven. MCDA methods, if used, should be chosen carefully based on their resource/time constraints, scientific validity, and the significance and broader context of the decision problem.

Return of money or return on money? Analyzing asset concentration of local government investment pool portfolios

The recent financial crisis provides an opportunity to examine the management of local government investment pools (LGIPs). This study examines asset concentration of current LGIPs to find if investment practices of LGIPs are consistent with the objective of prudent management of public funds. Using cross-sectional data of 72 LGIP portfolios, exploratory factor analysis was conducted. Findings suggest that there are five underlying factors that describe the investment practices of current LGIP portfolios. The findings also suggest that LGIP investment managers considered return on investment when they chose investment instruments. However, LGIP managers put more focus on the safety of investment when they allocated assets in their portfolio.

Risk in Local Government Investment Activities in Poland Financed by EU Structural Funds

Risk in Local Government Investment Activities in Poland Financed by EU Structural Funds

Teoria do Equilíbrio Pontuado nas Políticas Públicas Brasileiras: O Caso do Ceará

Resumo Este artigo faz uma análise do processo de decisão orçamental dos municípios do Estado do Ceará. Através deste estudo, procura-se perceber em que medida a distribuição dos orçamentos aos governos locais sofrem (ou não) variações. Já em um segundo momento, tenta-se depreender quais as receitas de cada um dos municípios (as variáveis independentes) que melhor descrevem e auxiliam a opção política de investimento local (esta será a variável dependente). Considerando o período de 2006 a 2010 e fazendo uso de um desenho de pesquisa de tipo transversal, conclui-se que nos governos locais do Ceará o investimento público apresenta períodos de estabilidade seguido por períodos de grande alteração dos orçamentos – confirmando a hipótese de pesquisa. Estas conclusões confirmam os pressupostos da teoria do equilíbrio pontuado. Conclui-se igualmente que o investimento público que vem sendo realizado é dependente das transferências que a União faz para os governos locais do Estado do Ceará e das receitas de capital. Face a estas condições, é pertinente equacionar até que nível e grau o endividamento pode ocorrer em virtude da escassez cada vez maior do financiamento público.