Size Of Government Research Articles

The Contingent Relationship Between Government Size and Nonprofit Sector Size: Exploring the Moderating Effect of Government Regulations

The Contingent Relationship Between Government Size and Nonprofit Sector Size: Exploring the Moderating Effect of Government Regulations

Study Of The Influence Of Public Expenditure And Macroeconomic Variables On The Happiness Index In Sumatera

This study aims to analyze the effect of public spending and macroeconomic variables (local government size, per capita GRDP, Gini coefficient, unemployment, inflation and tax revenue) on the happiness index in Sumatra. The types of data used in this study are cross-section data and time series data. Cross-section data covers 10 provinces in Sumatra, namely Aceh, North Sumatra, West Sumatra, Riau, Jambi, South Sumatra, Bengkulu, Lampung, Bangka Belitung Islands and Riau Islands. While the time series data consists of data from 2014, 2017 and 2021. The data sources are secondary data from the Central Statistics Agency and the Directorate General of Fiscal Balance, Ministry of Finance. The data were analyzed using the panel data regression method with the Common Effect Model approach. The results of the study show that Per Capita Income and Inflation have a significant effect on the happiness index in Sumatra. Meanwhile, public spending, local government size, Gini coefficient, unemployment rate, and local tax revenue do not show a significant effect on happiness. These findings suggest that while economic factors and the size of local government play an important role in improving well-being, the direct impact on people's happiness is influenced by a complex of other factors, including people's perceptions, social inequality, and the efficiency of resource management.

The Impact of Village Government Size, Wealth, and Intergovernmental Revenue on Village Financial Performance in Krian District, Sidoarjo, East Java

This study aims to analyze the impact of village government size, wealth, and intergovernmental revenue on village financial performance. The research method used is descriptive quantitative. The population in this study included all villages in the Krian sub-district, and sampling was determined by purposive sampling method with a total observation sample of 30 villages. The data analysis method uses Multiple Linear Regression techniques. The study found that village financial performance is positively and significantly influenced by size and wealth, but not by intergovernmental revenue. However, when considering all three factors together, size, wealth, and intergovernmental revenue have a significant impact on village financial performance. Village government financial performance refers to the ability of the village to explore, manage, and utilize its financial resources to support the government system, community services, and village development, without full dependence on the central government. The implications of this research are to support the performance of a healthy village government. The originality of this research is in health and intergovenmental revenue.

Analysis of Factors Affecting Local Government Financial Performance

The financial performance of local governments (LG) in implementing regional autonomy has a central role. However, the phenomenon is that only some local governments have this financial capability. Therefore, this study examines what factors can affect financial performance. This study empirically analyzed the effect of capital expenditure, local government size, legislative size, local revenue, and audit opinion on the financial performance of local governments in districts and cities in West Java. The method used uses quantitative methods. The research data used financial reports of Regency and City Regional Governments in West Java for the period 2015 - 2022 using Purposive Sampling. A total of 216 data were analyzed using Multiple Linear Regression. The steps in this study begin with a review of literature and regulations, data collection, data tabulation, data analysis, and then reporting and publication of research results. The results showed that the size of local government, local revenue, and audit opinion had a positive effect on financial performance, while capital expenditure and legislative size did not affect financial performance. Based on the results of this study, the implication is that district and city governments in West Java must increase the size of local governments, local revenue, and audit opinion to improve their regions' financial performance. Keywords: Performance, capital expenditure, local government size, PAD, legislative size, audit opinion.

Towards Progressive Multilateralism: Decoding the Trilemma of State, Democracy, and Globalisation

Institutions have long been influenced by their idiographic milieu. Western liberal institutions, grounded in liberal internationalism, often negate the institutional epistemology that advocates for diversity in the structural reform of Multilateral Institutions. Neo-liberal institutions, however, promote ontological tendencies in multilateral institutions. Decoding the functioning of the state, democracy and globalisation offers insights into restructuring the multilateral institutions (MIs). The study uses regression analysis to know the functioning of the state, democracy and globalisation in the countries of the global South and global North. Social determinism helps recognise and deconstruct ontological MIs. G-20, a conglomeration of developing and developed countries, is better positioned to make consensus through consultative, collaborative and decisive processes amid competing interests and ideologies. The study finds the variables of political trilemma vary contrary to neo-liberal prescriptions of reducing government size to encourage trade openness & liberal democracy. Moreover, the study refuted the notion that democracy leads to trade openness and the concurrent relationship between government size and democracy. These findings present a strong case to rethink and restructure multilateralism and MIs.

Determinan Tingkat Pengungkapan Wajib Laporan Keuangan Pemerintah Kabupaten/Kota di Provinsi Sumatera Selatan

The research aims to examine the effects of local government size, intergovernmental revenue, job specialization, and capital expenditure on the level of mandatory financial statement disclosure of local governments. Disclosure is based on Government Regulation related to Government Accounting Standards Number 71 of 2010. Secondary data is sourced from Audit Reports (LHP) on Local Government Financial Statements (LKPD). The sample comprises 17 districts/cities in South Sumatra Province with 51 LKPD audit reports from 2020-2022. Data is analyzed using multiple linear regression techniques with Eviews 12. The study finds that local government size significantly and positively affects the level of mandatory financial statement disclosure; intergovernmental revenue significantly and negatively affects the level of mandatory financial statement disclosure; while job specialization and capital expenditure do not have a significant effect on the level of mandatory financial statement disclosure; and all four factors together significantly affect the level of mandatory financial statement disclosure

Financial Reporting Quality and Accrual Accounting Disclosures: An Empirical Study on Regional Governments in Indonesia

Objective –This research aims to investigate the quality of financial reporting and the extent of accrual accounting disclosure in Indonesia. Additionally, it examines the influence of capital expenditure budget, size, and age on the quality of financial reporting, with accrual accounting disclosure acting as a mediator.Design/Methodology –The study was conducted by performing a textual analysis of 380 regional government financial reports in Indonesia. Data analysis was executed using the SEM-PLS method, facilitated by SmartPLS version 3.Results – Although no LGFS achieved a perfect score for reporting quality, there was a notable improvement in the quality of financial reporting and accrual-based accounting disclosures in the LGFS from 2017 to 2021. The capital expenditure budget, the age of the local government and accrual accounting disclosures significantly affect the quality of financial reporting. Furthermore, accrual accounting disclosures mediate the effect of local government size on the quality of financial reporting.Research limitations/implications –This research does not yet fully capture the quality of financial reporting and accrual accounting disclosures in Indonesia, as the study is limited to regional governments established in 2007. However, these findings can serve as a reference for local administrations striving to enhance the quality of their financial reporting and accrual accounting practices.Novelty/Originality –This study complements existing research on the progression of accrual accounting in Indonesia through textual analysis and further examines how accrual accounting disclosures affect the quality of financial reporting, while mediating key factors within local Indonesian governments.

The impact of government size on corruption: A meta‐regression analysis

The impact of government size on corruption: A meta‐regression analysis

Evaluation of Abrams curve in agricultural sector using the NARDL approach

Abstract Developing countries have made significant economic progress in the recent decades, but agriculture sector has not produced enough value add for the economy due to the low productivity in this sector, which contributes to poverty and delays in the growth of the entire economy in such countries. The aim of this research is to evaluate Abram’s theory in the agricultural sector of Iran using the nonlinear autoregressive distributed lag (NARDL) approach over the years 1981–2021. To this end, the effect of government size, agricultural sector wages, value add of the agricultural sector, inflation rate, mechanization coefficient, and the ratio of agricultural sector wages to other economic sectors on the unemployment rate of the agricultural sector were investigated. In the first step, stationarity of variables was examined by applying the generalized Dickey–Fuller and Phillips–Peron methods. Outcomes of the unit root test showed that the degree of cointegration between variables was zero and one, and there were no limitations to the application of the NARDL approach. Results showed that the Abrams curve would not be confirmed for the agricultural sector in Iran, because the coefficient obtained for the size of the state was negative. Also, the findings suggest that the government’s size affects the unemployment rate in the agricultural sector, while real wages in Iran’s agricultural sector impact unemployment.

On marketization and public spending growth

Abstract I contribute to the literature on the growth of public spending in Western economies with a novel mechanism that ties it to the marketization process, i.e. the substitution of home with market production. I argue that a key contributor to the expansion of social spending is the replacement of family-based transfers with public pensions and other public transfer programs. I provide empirical support for this hypothesis by establishing the long-run relationship between government size and marketization, alongside other established determinants of government spending, in a panel of Western economies. I then illustrate a potential mechanism behind the results with a theoretical model in which, as a result of the productivity advantage of the market over the home sector, family-based intergenerational transfers decline unexpectedly, providing a rationale for government intervention in the form of public pensions with a poverty relief component.

Free-market institutions and income inequality: Did the link persist around the world even in times of falling within-country inequality, 2000–2021?

High or rising economic inequality can exacerbate political inequalities and is plausibly linked with some social harms, such as health problems and declines in happiness and trust. Within-country income inequality increased sharply across most of the world since the 1980s. One prominent critical sociological account of this occurrence points toward institutions of free-market capitalism, or “neoliberalism,” as a key cause that unleashed inequality during the globalization age. This article empirically operationalizes free-market institutions with the use of Fraser Institute’s index of economic freedom and examines the issue with fixed-effects regressions in a novel dataset of 130 countries between the years 2000 and 2021. It finds a substantial positive correlation between the two variables in the developing, though not the developed, world. This finding is robust to a variety of alternative specifications. Moreover, across specifications, modest size of government and freedom of international trade stand out as the two clear components of economic freedom driving the aggregate relationship. Finally, mediation analysis suggests there also exists an indirect ameliorative relationship between economic freedom and inequality through the conduit of economic development.

Size of Government and Economic Growth: A Convergence Analysis of Former Soviet Union Countries from 1991 to 2018

Size of Government and Economic Growth: A Convergence Analysis of Former Soviet Union Countries from 1991 to 2018

Globalisation and the Size of the Public Sector in the Context of the Regime Change Approach: The Case of Türkiye

The size of the public sector in the economy is closely related to globalization. It aims to maximize welfare. There are two main hypotheses (efficiency and compensation) discussed in the literature on this relationship. Both hypotheses discuss the relationship between globalization and government size in terms of (i) the impact of globalization on public employment, (ii) the impact of globalization on public revenues, and (iii) the impact of globalization on public expenditure. Global and national economies are not static and periodically expand or contract. The main hypothesis of this study is that the validity of the efficiency and compensation hypothesis in economies varies according to expansion and contraction periods. In terms of financial and commercial globalization, this change is also differentiated. The results of this study, which is specific to Turkey, show that trade globalization has a positive effect on public employment and public expenditures within the scope of the compensation hypothesis, while the efficiency hypothesis is confirmed in the relationship between tax revenues and financial globalization. These results are exemplary for transition and developing countries in particular.

Under Treasury Control: Japan’s Emergence as an Egalitarian, Small-government State

This study analyses the formation of a policy system that reduced income inequality in Japan in the 1960s, a period of rapid economic growth. According to comparative research, the Japanese state is an example of small government with income equality. Japan’s income inequality rose in the 1950s, and at that point, the government faced a decision about how to reduce income inequality, and particularly whether to expand social security and government size. This study uses primary materials to analyse how and why Japan became more egalitarian while maintaining a small-government state, focusing on fiscal rules set by the Ministry of Finance, which adopted a balanced budget rule that prevented the issuance of public bonds and limited the tax burden ratio. As reflected in the government’s Income Doubling Plan, this development led to a trade-off among factors, such as social security, public works, and tax cuts, which led to the subordination of social security. Despite public debt issuance in 1965, which was contrary to two fiscal rules, social security did not expand because of fiscal rigidification. Throughout the 1960s, spending on public works and income tax cuts was prioritised over social security, resulting in small government but also income equality.

Deciphering the non-linear nexus between government size and inflation in MENA countries: an application of dynamic-panel threshold model

Contradictory to conventional economic theory, which foresees any increase in the size of government as inflationary, this article provides evidence that the reaction of price levels to changes in the size of government is nonlinear. The price levels do not necessarily increase in response to a rise in the size of the government but only up to a certain threshold or optimal level. Accordingly, this paper utilizes the dynamic panel threshold model to examine the threshold effects of government size (measured as government final consumption expenditure as a proportion of GDP) on inflation using a sample of 10 selected MENA countries from 1980 to 2019. The findings of this study stand out in several ways. First, the results support the nonlinear relationship between government size and inflation in the study area. Second, the government size’s estimated threshold level is equivalent to 12.46%. Third, government size negatively impacts inflation in the regime of small governments up to the threshold level. The impact turns positive once the government size goes beyond the threshold level in a regime of large size of government. These findings have ramifications for the conduct of fiscal policy. Policymakers in the MENA region can increase the size of government till it reaches the threshold level without exerting any upward pressure on price levels.

Accounting for large fiscal government size

Accounting for large fiscal government size

Government Size in Response to Trade Openness and General Government Debt

Government Size in Response to Trade Openness and General Government Debt

Unpacking Province Creation in The Philippines

To enhance service delivery and local democracy, legislators have tinkered with size or status of local governments in the Philippines. This elasticity in local borders has been more evident at the province level, the highest local government tier. Since 1987, a new province is birthed roughly every three years. As the determinants and mechanisms of contemporary province fragmentation are under-examined, this article investigates, at several policymaking levels and dimensions, attempts to redraw borders of Philippine provinces. Framed by an institutional framework and a case-study approach, and employing a veto-player analysis, heuristic cases of two provinces (Quezon and Zamboanga del Sur) were unpacked and compared. Findings reveal that there is a large and fragmented veto-player group in the area of territorial rescaling of provinces. Congruence of preferences among veto players was observed to be influenced by territorial leveraging, pivot on networks and reciprocity norm, and mirroring of preferences. The tenacity and strategic actions of reform agent or policy entrepreneur (usually the congressman), sometimes assisted by social movement, is likewise found crucial in the pathways leading to reform outcomes. In a simple cross-case analysis of recent reform attempts, findings also suggest that the provinces’ core-periphery location pattern, and proposed type of spatio-jurisdictional partition are associated with reform outcomes.

Does administrative division adjustment reduce air pollution? Evidence from city-county mergers in China

Administrative division adjustment plays a crucial role in transforming the spatial layout of cities and effectively contributes to green transformation and high-quality regional economic development. We empirically investigate the impact of administrative division adjustment, exemplified by city-county mergers (CCM), on air pollution using the difference-in-differences method. Our results demonstrate that CCM significantly reduces air pollution, which passes a series of robustness tests including heterogeneous treatment effect tests. Mechanism analysis reveals that CCM reduces air pollution by optimizing industrial structure, promoting market allocation, and constraining government size; geo-climatic conditions significantly moderate the haze reduction effect of CCM. Further analyses indicate that the haze reduction effect of CCM is more pronounced in the eastern and western regions, the southeast regions of the Hu Line, and non-resource-based regions. Moreover, CCM not only alleviates air pollution in border areas and mitigates the pollution boundary effect but also yields the social welfare effect. This paper provides valuable insights for maximizing the haze reduction potential of administrative division adjustment, understanding the role of Chinese-style decentralization in regional air pollution management, especially in border areas, and supporting the achievement of carbon emission reduction and sustainable development goals.

Government size and the effectiveness of fiscal policy: the bigger the better?

Abstract This study investigates the effect of government size, as measured by the tax revenue to gross domestic product (tax-GDP) ratio, on output responses to increases in government purchases. First, we show that in a standard static neoclassical model, the stimulus effect of fiscal expansion on output increases with the tax-GDP ratio. This finding is quantitatively confirmed using a dynamic neoclassical model with standard functional forms and parameter values. To empirically test the theoretical findings, we analyze the responses of macroeconomic variables to an unanticipated increase in government purchases for 12 Organisation for Economic Cooperation and Development (OECD) countries during 1985–2019 using a state-dependent local projection method. The estimation results reveal that while output responses to an unanticipated fiscal expansion are significantly positive when the tax-GDP ratio is high, they are statistically indistinguishable from zero when the ratio is low. Overall, our findings suggest that fiscal expansion can stimulate output more effectively at high tax rates, unlike the well-known predictions of the traditional Keynesian model.