Revenue Sharing Research Articles

Map to prosperity: Natural resource revenue sharing and infrastructure development in Indonesia

The well-being of society can be realized through meeting basic needs, one of which is providing public infrastructure. This study examines the role of Natural Resource Revenue Sharing Funds (DBH SDA) on government investment in infrastructure in 491 regencies/cities in Indonesia. The testing in this research uses panel data regression analysis. The results show that per capita DBH SDA in Indonesia during the study period of 2010–2012 has a significant and positive influence on government investment in infrastructure. The selection of this period is based on the consideration that a resources boom has occurred, where there is an increased global demand for natural resource commodities followed by an increase in commodity prices, thereby positively impacting revenue for countries or regions abundant in natural resources. Despite DBH SDA having a significant and positive influence, regional spending on infrastructure tends to be more influenced by central government transfers such as General Allocation Fund (DAU), Special Allocation Fund (DAK), and Local Own-source Revenue (PAD). It was found that government investment in infrastructure tends to be influenced by transfer funds, indicating that the role of the central government remains significant in determining the infrastructure expenditure of regencies/cities in Indonesia.

Fairness perceptions and payoff allocation preferences in the online food order and delivery industry: Evidence from a real experiment

Amid concern about the welfare implications of the revenue share model between food service establishments (FSEs) and food delivery companies (FDCs), academic contributions have been mostly theoretical. Within a conceptual framework of fairness, our empirical study provides a perspective from the third party in the multi-sided market: the consumer. Following an incentivized payoff allocation experiment with 500 English food consumers, we make three observations: (1) participants prefer to make allocations to FSEs as opposed to FDCs, (2) participants who perceive fairness as a social construct (honesty, responsibility) derive the most disutility from advantageous inequality and the least disutility from disadvantageous inequality in relation to FSEs, and (3) participants who perceive fairness as a structural construct (processes, outcomes) prefer more equal payoff allocations to FSEs and FDCs. The perception of price unfairness in the online food order and delivery industry is apparent, speaking to the need to find market and policy solutions.

Quality Improvement Decisions in Service Supply Chains with Collaborative and Free-Riding Behaviors

The dominant position of a member within a service supply chain plays a crucial role in fostering a willingness to improve service quality. Consequently, this study examines a service supply chain comprising a supplier and an integrator, aiming to investigate the influence of four different power structures, namely, supplier-led, integrator-led, supplier–integrator power balance, and supplier–integrator centralized decision, on the decision-making process for service quality improvement by members. The findings highlight that the optimal willingness to improve service quality in a service supply chain is not necessarily infinitely close to 100%, and is influenced by factors such as revenue share, cost, effect, and dominant position. In cases where the collaborative improvement effect is weak, even the dominant member may display a limited willingness, rendering centralized decision-making meaningless. If the collaborative improvement effect surpasses the combined independent improvement effects, the dominant position can help strengthen willingness, although it may not always result in higher profits. Conversely, a power-balanced scenario can be advantageous in achieving the highest profit for the entire supply chain.

A Current View on Strawberry Production Practices and Trends in the Northeastern United States and Canada

Strawberries (Fragaria ×ananassa) are an important crop for diversified fruit and vegetable farms in the northeastern United States as well as in Ontario and Québec, Canada. The industry in this cold climate region differs greatly from that in the major strawberry-producing states of Florida and California because strawberries typically represent a smaller share of total farm revenue and are sold primarily through retail markets. In recent years, strawberry production and marketing methods in the northeastern United States and Canada have diversified to meet the unique challenges of the region, including regional demand, extended seasons, and management of an increasingly challenging pest and disease complex. In 2020, we distributed an online survey to 163 commercial producers to obtain a snapshot of marketing and production practices used on strawberry-producing farms in this region and to assess research and outreach needs to better serve the industry. We conducted in-depth case study interviews with a small number of producers after the survey. We found that traditional June-bearing strawberry production continues to represent >50% of production, and that most fruit are grown conventionally. Day-neutral strawberry production was reported by an increased number of producers in New York as well as in Canada, and a higher percentage of day-neutral growers, compared to that of June-bearing producers, reported using protected culture. Botrytis (gray mold), weeds, and leaf spots were the top overall pest pressures indicated by growers. Survey respondents preferred written outreach materials and on-farm meetings to obtain information. Integrated pest management, organic production, and cultivar performance were the top priorities for subjects. The survey and interviews also provided information about the most common strategies for winter protection, frequency of pesticide applications, lifespan of plantings, and other current strawberry production practices in the region. Our survey results may be used by researchers and extension professionals to better serve this diversifying industry.

Retailer-Manufacturer Partnerships in E-Commerce: Dual Product Strategy and Market Share Dynamics

A new practice among online retail platforms, e.g., Amazon and Wayfair, is to offer their own private label product and a substitutable exclusive manufacturer product. We employ a game theoretic approach to examine conditions under which a retailer and a manufacturer find it optimal to enter into such a partnership. Our analysis reveals that a retailer finds it profitable to partner with a manufacturer with one of two profiles. The first is a manufacturer with low unit production and holding costs and large capacity, and the retailer gives the manufacturer most of the market share. In this case, the retailer uses a low private product price and marketing effort to pressure the manufacturer to set a low exclusive product price, which increases the manufacturer's revenue and the retailer's fees. The second is a manufacturer with a large consumer base, high unit production and holding costs, and small capacity. For this profile, the retailer takes most of the market share by offering a low private product price, and the manufacturer is unable to counteract the retailer's low private product price and marketing effort. The partnership results in a lower price when the marketing effort is costly and the retailer relies on private product price, intensifying price competition. Under some conditions, the retailer's profit may decrease in his share of the manufacturer's revenue. Also, the retailer may increase the marketing effort and decrease the private product price, not to take market share, but to pressure the manufacturer to decrease price.

THE TAX SYSTEM OF UKRAINE: MODERN ASPECTS OF FUNCTIONING AND DIRECTIONS OF OPTIMIZATION

Objective. The purpose of the article is to study the conditions and results of the functioning of the tax system of Ukraine in the pre-war period and during the full-scale military invasion. Methods. The research was conducted using abstract-logical, graphical, analytical and other methods of scientific cognition. Results. During 2014-2023, the tax system of Ukraine underwent a number of improvements and reforms, which, despite the declared focus on improving efficiency, did not allow achieving the specified results. The improvement of certain aspects of the tax system was particularly active at the beginning of the full-scale invasion, when a number of stimulus laws were adopted to reduce the tax burden on the economy, consumers and entrepreneurs. At the same time, the level of budget revenues and the share of tax revenues in consolidated budget revenues and expenditures tended to increase in 2014-2021. Only in 2022-2023 did this figure decline significantly. However, the qualitative assessment showed that the overall level of the tax burden remained fairly stable throughout the study period and amounted to more than 30%. Such a high rate negatively affects the efficiency of the tax system, as it encourages taxpayers to violate tax laws and narrows the range of potential investors. Scientific novelty. Given the situation under study, the author proposes relevant directions for optimizing the functioning of the tax system of Ukraine at the present stage, taking into account not only economic (contextual focus on the relevant areas and sectors of the national economy), social (regulation of the actual effectiveness of the tax-free minimum) and political (openness of data on the directions and amounts of tax revenues, streamlining and harmonization of tax legislation, etc. Practical significance. Implementation of the above vectors of improvement of the tax system will allow stabilizing it at the stage of active hostilities and will be an impetus for further development in the post-war period.

Determinan Kinerja Keuangan Provinsi Gorontalo Tahun 2017-2022

This study aims to analyze the effect of Local Revenue, General Allocation Fund, General Allocation Fund, Special Allocation Fund and Revenue Sharing Fund on the Financial Performance of Gorontalo Province Local Government. The data used in this study is secondary data sourced from the Directorate General of Balance of the Ministry of Finance of the Republic of Indonesia obtained from 6 regencies / cities in Gorontalo Province. This study uses Multiple Linear Regression Analysis of Panel data using the Fixed Effect Model (FEM). The results of this study indicate that 1). Regional Original Revenue has a positive and significant effect on Local Government Financial Performance, meaning that every increase in PAD by 1 rupiah can improve Regional Financial Performance. 2). The General Allocation Fund has a positive and significant effect on Regional Financial Performance, meaning that every increase in the General Allocation Fund by 1 rupiah can improve Regional Financial Performance. 3). The Special Allocation Fund has a positive and significant effect on Regional Financial Performance, meaning that any increase in the Special Allocation Fund by 1 rupiah can improve Regional Financial Performance. 4). Revenue Sharing Fund has a negative and significant effect on Regional Financial Performance, meaning that every increase in Revenue Sharing Fund of 1 rupiah can reduce Regional Financial Performance.

Advertising strategies of one e-commerce platform and competitive sellers in a supply chain under agency mode

As the internet traffic dividend disappears, the growth of e-commerce platforms slows and competition among sellers increases. We examine whether the sellers choose to cooperate with the e-commerce platform in advertising. This paper considers advertising strategies in a supply chain with one e-commerce platform and two competitive sellers, where each seller can choose either cooperative advertising or independent advertising in a strategic game. This paper shows that the cooperative advertising strategy is a unique Nash equilibrium. Only when a seller has a relatively high revenue share ratio in the cooperative venture, and competition with the other seller is low, will the seller obtain higher profits with cooperative advertising than independent advertising. After competition increases to a certain level, the sellers fall into the prisoner’s dilemma. Cooperative advertising can increase the profits of the platform. It is better for the platform to cooperate with two sellers than with only one seller. Besides, a seller’s market share can also impact its advertising strategy. Previous studies were mainly based on traditional supply chains in the wholesale mode where the platform acts as a retailer. Our paper considers the supply chains under the agency mode where sellers compete on price and advertising.

The High Cost of Raising Provincial Tax Revenues Has Gotten Even Higher

Households and firms’ responses to higher tax rates alter the volume and the allocation of land, labour and capital in the economy, reducing our income and consumption opportunities. These economic losses from raising tax revenues have increased for provincial governments across Canada in the last decade with the problem being especially acute in Newfoundland and Labrador, Ontario and British Columbia. However, by lowering personal and corporate income tax rates and shifting more of the tax burden to a sales tax harmonized with the federal GST, the provinces could lower the economic cost of raising tax revenues. Taxpayers’ responses to higher tax rates adversely affect the economy. When rates go up, people are less inclined to save for the future because they must pay higher taxes on interest and dividends, and workers react by avoiding overtime and retiring early. When returns on investment generate higher taxes for corporations, they respond by cutting back their capital expenditures. Also, when people and companies can avoid paying a tax by shifting income or consumption to another jurisdiction with lower tax rates, the tax base will shrink as the tax rate goes up, reducing both income and consumption opportunities — an effect known as the deadweight loss from taxation. The larger the tax base, measured as a share of tax revenues, the greater the deadweight loss from a tax-induced decline in the tax base. All of these reactions to higher tax rates change the volume and allocation of land, capital and labour in the economy. The societal cost from raising extra revenue through a small tax rate increase is called the marginal cost of public funds (MCPF). It can be used to determine which taxes are causing the greatest welfare losses and to measure the gains from shifting the tax burden from the high-cost sources of tax revenues to those that impose a lower deadweight loss. Public projects should use the MCPF in doing a cost-benefit analysis, comparing the project’s benefits with the welfare loss from financing the project through higher taxes. The more reactivehousehold and business decisions are to tax rates, the greater the MCPF. When sales taxes are applied to a wide range of goods and services, people are limited by how much they can change their spending patterns to avoid paying those taxes. Thus, revenue is generated with lower detrimental economic effects than those created by increased personal and corporate income tax rates. Provinces could reduce the problems created by the public’s incentive to avoid paying taxes by both lowering their personal and corporate income tax rates and moving the tax burden over to a general sales tax.

Greed or Grievance? Linking Revenue Sharing Implementation to Unauthorised Resource Use and Conservation Support at Bwindi Impenetrable National Park

Revenue sharing is considered a major incentive to promote Community Based Approaches to conservation of protected areas. The sharing of revenue from Protected Area resources is supported by conservationists to promote strong partnerships between protected area management and local communities to address unauthorised resource use for better conservation outcomes. This is premised on the ability of the shared revenue to translate into people’s livelihood improvement and minimize their dependency on resources from protected areas. However, empirical realities indicate that the practice of the Revenue Sharing policy barely addresses the initial objectives of human livelihood improvement to gain support for conservation. This study examined the Revenue Sharing Implementation, Data was collected from 715 respondents who included Local community members (including the unauthorised resource users), staff from conservation organisations in Bwindi and local council leaders. Data was collected using household survey questionnaires, key informant interviews and Focus Group Discussion (FGD). Results showed that most beneficiaries of the Revenue Sharing policy were random community households not the unauthorized resource users. The revenue sharing projects allocated to community members were majorly livelihood projects compared to common good projects. Projects included; livestock, passion fruit growing, poultry, provision of land and water projects. Unauthorised resource use was largely motivated by the need for bush meat, minor timber forest products especially firewood, collection of basketry materials and medicinal plants. Protected area managers ought to consider greater involvement of poachers in Revenue Sharing activities. Reducing unauthorized resource use requires systematic but also a combination of factors to mitigate the most driving forces that compel community members to engage in unauthorized forest resource use

Building the Empirical Puzzle on Impact of Macroeconomic Determinants on GST Revenue: An Empirical Investigation via ARDL Bound Test Perspective

ABSTRACTThe revenue mobilization remains a challenge for many countries, especially developing countries such as India. Therefore, this study explores the macroeconomic determinants of Goods and Service Tax (GST) revenue of the government in India as GST constitutes a major share in the Own Tax Revenue (OTR) of the government in India. The current study has employed the Auto Regressive Distributed Lag (ARDL) model to examine the macroeconomic determinants of GST taxation revenue of the government in India. The results reveal that foreign direct investment, depreciation in the exchange rate and foreign exchange reserves have a favorable impact on the GST revenue of the government in India. Furthermore, the gross fiscal deficits of the government and inflation have a detrimental effect on the GST revenue collection of the government in India. The results of the study are supported by the Tanzi effect and the Tanzi–Olivera effect for the detrimental effect of inflation and gross fiscal deficit on the GST revenue of the government in India. The current study has major policy implications for the government, policymakers, and researchers. The empirical results illustrates that the government may put a stringent check on inflation and gross fiscal deficit of the country to improve their GST collections. Moreover, the government should try to focus on foreign direct investment, trade openness, and foreign exchange reserve in India to increase their GST revenue. Meanwhile, the current study can be used as a base for conducting future studies at national and international levels for examining the determinants of other taxation revenue of the government by incorporating other country specific variables. This study may act as a novel contribution to the available literature on the macroeconomic determinants of taxation revenue in India. To the knowledge, it will be the first study in India to especially explore the determinants of GST revenue of the government in India. However, the findings of the study need to be generalize in future by incorporating a larger sample size as GST is still in its introductory phase in India.

Revenue Sharing in Professional Sports Leagues

Revenue Sharing in Professional Sports Leagues

Political uncertainty and revenue sharing in international contracting

This study investigates a critical source of political uncertainty for foreign investors in a centralised political system: leadership turnover within local governments. Our stylised model suggests that risk-averse foreign investors, faced with this uncertainty, tend to offer a larger revenue share to their local partners in international joint ventures (IJVs). This incentivises local officials to provide the necessary authorisations and public inputs for IJVs. Using a unique Chinese dataset that links city-level leadership changes with firm-level incentive structures, our empirical analysis provides robust evidence supporting this framework.

Study of the Reaction of Stock Markets to the Cancel Culture Phenomenon in Relation to Russia

Suspension of business in Russia by most foreign corporations after the events of 24 February 2022 led to the fact that the social phenomenon of “cancel culture” is now also considered within the framework of global economy and finance. In recent years, the IT industry is appraised as one of the fastest-growing, and the study of its reaction to global events is highlyrelevant. Using the Event Study method, this study proves that there is no significant impact of the declaration of the Russia-Ukraine conflict on US stock market dynamics of IT companies with branches in Russia. The analysis of individual cases from the sample of companies shows that the companies’ decision to suspend or continue business in Russia depended only on the presence of a significant share of revenues in Russia, the degree of reputational and sanctions risks, and the specifics of corporate ESG policies. The model is limited by the sample and period of analysis. In order to verify model reliability, we applied the t-test that determined the significance of the results. The research is of practical relevance because internationally operating companies may use its data to evaluate risks and make strategic decisions.

FURTHER DISCUSSION ON INVESTMENT LAW, CYBERSECURITY LAW AND RECOMMENDATIONS FOR ATTRACTING FOREIGN INVESTMENT (FDI)

The purpose of this article is to present Further Discussion on Investment Law, Cybersecurity Law and Recommendations for Attracting Foreign Investment (FDI). Based on collects statisti-cal data from the statistical yearbooks of the provinces/cities from 2010 to 2021. We found FDI inflows have a positive impact on labor productivity in Vietnamese localities. Specifically, locali-ties have (i) the larger the proportion of FDI in progress in the total investment capital of the economy, (ii) the larger the number of projects, the more accumulated FDI in operation, (iii) FDI sector activity and (iv) the larger the share of net revenue of the FDI sector, the higher the labor productivity. Moreover, investors need to pay attention to cybersecurity law: Acts of distorting history, denying revolutionary achievements, and sabotaging the great unity bloc whole nation, offending religion, discriminating on gender, racial discrimination; Acts of spreading information harmful to organizations and individuals, including: false information causing confusion among the people, causing damage to socio-economic activities, causing difficulties for activities. actions of state agencies or official duty performers, infringing upon the lawful rights and interests of other agencies, organizations and individuals

Strategy for Increasing the Absorption of Revenue Sharing Fund of Reforestation Fund in East Kalimantan Province Government

Revenue sharing fund of reforestation fund (DBH DR) is one source of regional revenue from natural resources. However, since distributed to provinces in 2017, they have problems every years in absorbing this funds. In 2017-2019, there is still remaining funds of 1.4 trillion from the 2.47 trillion has distributed to the provinces. This study aims to analyze the policies and implementation of DBH DR, as well as identify the factors that influence the absorption of the budget based on stakeholder perceptions. The survey was conducted with key stakeholders in East Kalimantan Province, Ministries and the community to find out their perceptions of program implementation and was analyzed using the NVivo 12 application. Based on research, technical regulations issued by the central government have not accommodated regional needs. The planning time for DBH DR is not in accordance with the regional planning and budgeting cycle, resulting in adjustments and delays in the activities implementation. The strategy is synchronization of DBH DR policies or regulations with regional planning and budgeting cycles, expanding the use of DBH DR according to regional needs, and capacity building for local government officials on technical regulations.

Financing Local Governments in South Africa

The intergovernmental fiscal architecture for local governments in South Africa is a product of the negotiations in the late 1990ties to end apartheid, a thorough consideration at the time of what funding system for local government would serve a democratic South Africa the best, and the many developments that the system has undergone since its inception around the turn of the century. The architecture reflects South Africa’s integrated system of multilevel government. The national government has a virtual monopoly on all taxes, and provinces almost rely almost entirely on transfers. Municipalities fund their budgets with own revenue, complemented by an equitable share of national revenue and conditional grants. This contribution sets out the considerations that influenced the system of financing local government, designed to usher in democracy at local level. It then examines the framework for own revenue generation by municipalities as well as the system for determining intergovernmental transfers. It considers practical challenges with the implementation of this framework, the extent to which the assumptions that underpin the architecture are still valid, and the system’s capacity to respond to changing circumstances.

Pengaruh PAD, DAU, DBH, dan Belanja Modal terhadap PDRB dan Kemiskinan di Kabupaten Sidoarjo

The purpose of this study is to determine the impact of Regional Own Generated Funds (PAD), General Allocation Funds (DAU), Revenue Sharing Funds (DBH), and local government capital expenditures on economic growth (PDRB) and poverty levels in Sidoarjo Regency. This research utilizes multiple linear regression analysis method through SPSS software version 25 in data processing. The PAD, DAU, DBH, capital expenditure, GRDP, and poverty data used in this study are taken within period of 2014 to 2020. The results of the study showed that PAD, DAU, DBH, and capital expenditure together did not have a significant effect in increasing economic growth. However, partially, PAD has a significant positive impact on economic growth while DAU, DBH, and capital expenditures have no significant effect even though they affect GRDP growth. In the poverty model, the results show that PAD, DAU, DBH, and local government capital expenditures, either simultaneously or partially, do not have a significant impact in reducing poverty levels in Sidoarjo Regency.

Revenue Generation Trends through Sharing and Grants An Evidence from Baglung Municipality, Gandaki Province, Nepal

This paper assesses the trends of revenue generation through sharing and grants in Baglung Municipality from fiscal year 2018/19 to 2022/23. The data were gathered from a comprehensive review of financial reports, budgetary documents, revenue sharing agreements, and relevant records of the municipality, and from the opinions of the respondents using five-point Likert scale questionnaires, selecting 42 respondents from 14 wards of Baglung Municipality purposively. The obtained data were analyzed descriptively. The study shows variations in the revenue performance. This municipality has been found primarily dependent on value-added tax (VAT) revenue (54.18 % in an average), which regularly accounts for a sizable share of revenue sharing, even though revenue from real estate registration fees shows a constant increase and contributes to overall revenue sharing. Regarding grants, the allocation among different categories indicates a strong focus on equalization grants (covered 21.72 % in federal grant and 66.75 % in province grant in an average). Similarly, the study has found a turnover or new wave of representatives (69.0 % less than two years of involvement) within the local entity. The study result also indicates the multifaceted needs of the community, with a particularly strong focus on roads and water supply as per the responses of 59.5 % respondents. The current revenue sharing model promotes local development, and the distribution of revenue among different sectors is found effective. Finally, this study suggests strategies pertaining to revenue estimation methodologies, manpower planning initiatives, mitigation of risks associated with an overreliance on VAT, decisions based on needs, integration of community feedback, and diversification of revenue sources to foster long-term financial stability of this municipality.

The Relationship Between Diversification Strategies and Corporate Financial Performance: Taking Gree Group as an Example

Diversification strategy is a common and important method for enterprises to expand business scope, effectively use resources, and improve economic benefits. However, not all companies that have adopted a diversified strategy will be successful. There are still some controversies about the relationship between diversification strategy and firm performance. Based on summarizing the diversification theory, this paper evaluates the performance of Gree Group under the diversification strategy through financial indicators, Tobin's Q value, and share of revenue. We draw a conclusion that Gree's current diversification strategy is not suitable for the future development of the enterprise and provide suggestions about the adjustment of Grees diversification strategy.