Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/3
Gunawan Adnan, K. Amri
DOI: 10.14254/2071789X.2021/14-3/3 ABSTRACT. Our study aims to explore the effect of gender empowerment and democracy on the poverty rate in western Indonesia. The data operationalized is a crosssectional data set of 8 provinces for the period of 20072018. The dynamic model of the econometric analysis was applied to analyze functional and causal relations between the three variables. Our findings discovered that there is a long-run equilibrium relationship between the poverty rate, gender empowerment, and democracy. In the long-run, both the poverty rate and democracy positively related to gender empowerment. In the short-run, the relations are negative and significant. At the 2-period horizon, gender empowerment has a negative and significant effect on poverty, but democracy has a non-significant effect on the poverty rate. The result of the Granger causality test indicates that there is a bidirectional causality between gender empowerment and democracy. Besides, unidirectional causality exists from gender empowerment and democracy to poverty rates. This finding implies that the effort of the Indonesian government to alleviate the poverty rate should consider policy intervention related to increasing gender empowerment and improving the quality of democracy. The government should encourage women’s role in the economic, social, and political field. Besides, the government has to increase the democracy index by improving civil rights in economics and politics.
{"title":"Do gender empowerment and democracy reduce poverty rate? A cross-provinces evidence from western Indonesia","authors":"Gunawan Adnan, K. Amri","doi":"10.14254/2071-789x.2021/14-3/3","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/3","url":null,"abstract":"DOI: 10.14254/2071789X.2021/14-3/3 ABSTRACT. Our study aims to explore the effect of gender empowerment and democracy on the poverty rate in western Indonesia. The data operationalized is a crosssectional data set of 8 provinces for the period of 20072018. The dynamic model of the econometric analysis was applied to analyze functional and causal relations between the three variables. Our findings discovered that there is a long-run equilibrium relationship between the poverty rate, gender empowerment, and democracy. In the long-run, both the poverty rate and democracy positively related to gender empowerment. In the short-run, the relations are negative and significant. At the 2-period horizon, gender empowerment has a negative and significant effect on poverty, but democracy has a non-significant effect on the poverty rate. The result of the Granger causality test indicates that there is a bidirectional causality between gender empowerment and democracy. Besides, unidirectional causality exists from gender empowerment and democracy to poverty rates. This finding implies that the effort of the Indonesian government to alleviate the poverty rate should consider policy intervention related to increasing gender empowerment and improving the quality of democracy. The government should encourage women’s role in the economic, social, and political field. Besides, the government has to increase the democracy index by improving civil rights in economics and politics.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44798412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/10
Jeyhun Abbasov, Elchin Gulaliyev, F. Ahmadov, I. Mammadov
This paper investigates the impact of the Government's capital and current expenditures on economic growth in Azerbaijan. The estimation strategy of the research consists of two directions. First, all estimation approaches were used for the period of 2005Q1-2019Q4. The estimated model for this period is called Model 1. Second, the model which is called Model 2 was estimated for whole period of 2005Q12021Q1. This approach allows comparing the role of the Government expenditures on non-oil economic activity in normal times and during the COVID-19 pandemic in Azerbaijan. Estimations show that coefficients characterizing the impact of Government current expenditures and capital expenditures on non-oil economic growth are almost the same for both periods. Therefore, we can state that COVID-19 pandemic did not affect the structure of the relationship between Government expenditures and non-oil economic growth. Results show that 1 percent increase in capital and current expenditures of state budget increases the real non-oil GDP by 0.10 and 0.40 percentage points, respectively. Accordingly, both capital and current expenditures of the state budget have positive impact on the real non-oil GDP growth for the both periods. This is in contrast to findings in the literature, which argue that increasing current expenditures financed by tax hikes lead to a lagged decrease in private investment, having an overall negative impact on economic growth. We attribute this opposing finding to the Azerbaijani state budget revenue system, which is financed by transfers from the State Oil Fund (Stabilization Fund). Thus, large government investment and social projects mostly rely on non-tax sources. Therefore, we argue that positive impact of capital and current expenditures of government budget on non-oil GDP seems plausible for Azerbaijan. Another result of our estimation is that expansion of economic openness accompanied by non-oil economic growth plunge in Azerbaijan. We interpret this phenomenon with very low share of non-oil export, where openness is mostly caused by increase in import volume.
{"title":"Does the COVID19 pandemic change the relationship between government expenditures and economic growth in Azerbaijan?","authors":"Jeyhun Abbasov, Elchin Gulaliyev, F. Ahmadov, I. Mammadov","doi":"10.14254/2071-789x.2021/14-3/10","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/10","url":null,"abstract":"This paper investigates the impact of the Government's capital and current expenditures on economic growth in Azerbaijan. The estimation strategy of the research consists of two directions. First, all estimation approaches were used for the period of 2005Q1-2019Q4. The estimated model for this period is called Model 1. Second, the model which is called Model 2 was estimated for whole period of 2005Q12021Q1. This approach allows comparing the role of the Government expenditures on non-oil economic activity in normal times and during the COVID-19 pandemic in Azerbaijan. Estimations show that coefficients characterizing the impact of Government current expenditures and capital expenditures on non-oil economic growth are almost the same for both periods. Therefore, we can state that COVID-19 pandemic did not affect the structure of the relationship between Government expenditures and non-oil economic growth. Results show that 1 percent increase in capital and current expenditures of state budget increases the real non-oil GDP by 0.10 and 0.40 percentage points, respectively. Accordingly, both capital and current expenditures of the state budget have positive impact on the real non-oil GDP growth for the both periods. This is in contrast to findings in the literature, which argue that increasing current expenditures financed by tax hikes lead to a lagged decrease in private investment, having an overall negative impact on economic growth. We attribute this opposing finding to the Azerbaijani state budget revenue system, which is financed by transfers from the State Oil Fund (Stabilization Fund). Thus, large government investment and social projects mostly rely on non-tax sources. Therefore, we argue that positive impact of capital and current expenditures of government budget on non-oil GDP seems plausible for Azerbaijan. Another result of our estimation is that expansion of economic openness accompanied by non-oil economic growth plunge in Azerbaijan. We interpret this phenomenon with very low share of non-oil export, where openness is mostly caused by increase in import volume.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45135676","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/11
M. Wroński
DOI: 10.14254/2071789X.2021/14-3/11 ABSTRACT. We use a novel cross-country data set to measure multidimensional inequality of income, wealth, and consumption in 21 EU countries. We investigate the correlation between the positions of the household in their distributions. We use the bootstrap method to assess the statistical significance of cross-country differences. We find that the correlation between the position of the household in considered distributions varies significantly across countries. Homeownership, median income, and level of unidimensional inequalities are correlated with the strength of the link between distributions. Multidimensional analysis of inequality changes the picture emerging from the unidimensional inequality analysis. Wealth inequality is a crucial contributor to multidimensional inequality. Cross-country differences in multidimensional inequality in the European Union are rather mild.
{"title":"Multidimensional inequality in the European Union. The joint distribution of household income, wealth and consumption","authors":"M. Wroński","doi":"10.14254/2071-789x.2021/14-3/11","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/11","url":null,"abstract":"DOI: 10.14254/2071789X.2021/14-3/11 ABSTRACT. We use a novel cross-country data set to measure multidimensional inequality of income, wealth, and consumption in 21 EU countries. We investigate the correlation between the positions of the household in their distributions. We use the bootstrap method to assess the statistical significance of cross-country differences. We find that the correlation between the position of the household in considered distributions varies significantly across countries. Homeownership, median income, and level of unidimensional inequalities are correlated with the strength of the link between distributions. Multidimensional analysis of inequality changes the picture emerging from the unidimensional inequality analysis. Wealth inequality is a crucial contributor to multidimensional inequality. Cross-country differences in multidimensional inequality in the European Union are rather mild.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48446984","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/16
Main Al-Dalahmeh, K. Dajnoki
DOI: 10.14254/2071789X.2021/14-3/16 ABSTRACT. The purpose of the study is to indicate nativity status differences (native-born and foreign-born) by gender based on labour market status. The primary objective is to explore the labour market status differences in terms of nativity status based on a gender perspective of labour status. A quantitative research approach was applied to this study. Linear Regression analysis and Trend Analyses are used to emphasize the relationship between the native-born males/females and the foreign-born males/females in the labour market status as employed, unemployed and inactive. This study aims to answer which is higher in the case of native-born and foreign-born female/male employed, unemployed, and participation rates in Western-European countries. Data was collected from OECD (Organization for Economic Co-operation and Development) migration databases between 2014 and 2018 for Western European countries. It has been found that in the chosen countries, there is a linear relationship between native-born males/females and foreign-born males/females in most of the cases. If one side increases in terms of employed status or unemployed status, the other side also increases due to the existence of a significant and positive linear relationship. The findings suggest that this study implies that destination countries should create good labour market legislation to reduce the number of unemployed among both migrants and the native-born population. As very few studies have investigated gender differences in migration, this study gives a different perspective on the subject by comparing the same-gender relationship in the nativity status of the labour market.
{"title":"The influence of migration on the labour market status in Western European countries","authors":"Main Al-Dalahmeh, K. Dajnoki","doi":"10.14254/2071-789x.2021/14-3/16","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/16","url":null,"abstract":"DOI: 10.14254/2071789X.2021/14-3/16 ABSTRACT. The purpose of the study is to indicate nativity status differences (native-born and foreign-born) by gender based on labour market status. The primary objective is to explore the labour market status differences in terms of nativity status based on a gender perspective of labour status. A quantitative research approach was applied to this study. Linear Regression analysis and Trend Analyses are used to emphasize the relationship between the native-born males/females and the foreign-born males/females in the labour market status as employed, unemployed and inactive. This study aims to answer which is higher in the case of native-born and foreign-born female/male employed, unemployed, and participation rates in Western-European countries. Data was collected from OECD (Organization for Economic Co-operation and Development) migration databases between 2014 and 2018 for Western European countries. It has been found that in the chosen countries, there is a linear relationship between native-born males/females and foreign-born males/females in most of the cases. If one side increases in terms of employed status or unemployed status, the other side also increases due to the existence of a significant and positive linear relationship. The findings suggest that this study implies that destination countries should create good labour market legislation to reduce the number of unemployed among both migrants and the native-born population. As very few studies have investigated gender differences in migration, this study gives a different perspective on the subject by comparing the same-gender relationship in the nativity status of the labour market.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42114883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/12
L. Carvalho, Inese Mavlutova, Kristaps Lešinskis, Rui Dias
DOI: 10.14254/2071789X.2021/14-3/12 ABSTRACT. This study seeks to investigate the entrepreneurial perceptions among the students regarding their professional careers analyzing macro, micro and entrepreneurial education factors in Latvia, including the analysis of gender differences. The research is based on the analysis of data collected through a survey. The paper uses statistical analysis involving the measures of descriptive statistics (absolute and relative frequencies, means and respective standard deviations) and inferential statistics to examine the differences within an original dataset of 360 young people in Latvia. The results reveal several statistically significant gender differences. This research contributes to enriching literature and also adds value to studies on entrepreneurial perceptions divided by gender. Understanding the factors which shape entrepreneurship education, macrofactors and microfactors affecting young people’s decisions and perceptions, education systems and public policies would allow adjusting and designing policies aiming to boost entrepreneurship education and enhance entrepreneurship as a career choice and balance it in a gender context.
{"title":"Entrepreneurial perceptions of students regarding business professional career: The study on gender differences in Latvia","authors":"L. Carvalho, Inese Mavlutova, Kristaps Lešinskis, Rui Dias","doi":"10.14254/2071-789x.2021/14-3/12","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/12","url":null,"abstract":"DOI: 10.14254/2071789X.2021/14-3/12 ABSTRACT. This study seeks to investigate the entrepreneurial perceptions among the students regarding their professional careers analyzing macro, micro and entrepreneurial education factors in Latvia, including the analysis of gender differences. The research is based on the analysis of data collected through a survey. The paper uses statistical analysis involving the measures of descriptive statistics (absolute and relative frequencies, means and respective standard deviations) and inferential statistics to examine the differences within an original dataset of 360 young people in Latvia. The results reveal several statistically significant gender differences. This research contributes to enriching literature and also adds value to studies on entrepreneurial perceptions divided by gender. Understanding the factors which shape entrepreneurship education, macrofactors and microfactors affecting young people’s decisions and perceptions, education systems and public policies would allow adjusting and designing policies aiming to boost entrepreneurship education and enhance entrepreneurship as a career choice and balance it in a gender context.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49296578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789X.2021/14-3/14
Rita Remeikienė, A. Bagdonas
The article aims to investigate the need for psychological help and its availability for professionals working in frontal areas during an emergency situation. A representative study (N=1139;educators, medical staff, social workers, psychologist, and other;304 respondents from Vilnius district) concluded that the need for psychological services and the intensification of such provision in crisis situations is clear. As a result, the necessary decisions are formed at the state level, which improve the legal regulation of psychological services both at the level of individual agencies and at the interdepartmental level. The authors of the article recommend regulating at least the time norms and costs of psychological services provided in the public sector, as well as regulating the relevant parameters of health care, social or educational services and developing remote psychological services not only for sensitive groups (e.g. children or silver lines), professionals and the general population (especially in the context of social crises), to bring university studies of psychologists more in line with the requirements of the EuroPsy1 diploma.
{"title":"COVID-19 effects on frontline professionals: A psychological aspect","authors":"Rita Remeikienė, A. Bagdonas","doi":"10.14254/2071-789X.2021/14-3/14","DOIUrl":"https://doi.org/10.14254/2071-789X.2021/14-3/14","url":null,"abstract":"The article aims to investigate the need for psychological help and its availability for professionals working in frontal areas during an emergency situation. A representative study (N=1139;educators, medical staff, social workers, psychologist, and other;304 respondents from Vilnius district) concluded that the need for psychological services and the intensification of such provision in crisis situations is clear. As a result, the necessary decisions are formed at the state level, which improve the legal regulation of psychological services both at the level of individual agencies and at the interdepartmental level. The authors of the article recommend regulating at least the time norms and costs of psychological services provided in the public sector, as well as regulating the relevant parameters of health care, social or educational services and developing remote psychological services not only for sensitive groups (e.g. children or silver lines), professionals and the general population (especially in the context of social crises), to bring university studies of psychologists more in line with the requirements of the EuroPsy1 diploma.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44188875","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/18
R. Rajnoha, P. Lesníková, Jozef Vahančík
DOI: 10.14254/2071789X.2021/14-3/18 ABSTRACT. The future belongs to sustainability. It is becoming more important to achieve sustainable economic development. Therefore, in addition to the countries ́ economic performance, the continuous improvement of the quality of life should also be essential. The set topic is crucial, even necessary to achieve the ambitious goals of today's society in terms of sustainable economic development. The need for solution highlights the possible changes in the social aspect of economic development. Following this challenge, the objective of the paper is to evaluate the development of 26 quality of life indicators from selected 6 categories in the V4 countries and Austria as a research benchmark country between 2010-2019 and to identify the impact of the level of GDP on these indicators. The descriptive statistics and linear regression analysis are used. Most life quality indicators reveal that the level of the V4 countries is better than the EU 27 average or the same. In conclusion, 61.5% of variables in all countries related to research hypothesis was confirmed, which means that the GDP growth had a positive effect on the improvement of the quality of life within these variables. However, comparing to Austria as a highly developed country, a significant sustainable development gap can be still observed in V4.
{"title":"Sustainable economic development: The relation between economic growth and quality of life in V4 and Austria","authors":"R. Rajnoha, P. Lesníková, Jozef Vahančík","doi":"10.14254/2071-789x.2021/14-3/18","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/18","url":null,"abstract":"DOI: 10.14254/2071789X.2021/14-3/18 ABSTRACT. The future belongs to sustainability. It is becoming more important to achieve sustainable economic development. Therefore, in addition to the countries ́ economic performance, the continuous improvement of the quality of life should also be essential. The set topic is crucial, even necessary to achieve the ambitious goals of today's society in terms of sustainable economic development. The need for solution highlights the possible changes in the social aspect of economic development. Following this challenge, the objective of the paper is to evaluate the development of 26 quality of life indicators from selected 6 categories in the V4 countries and Austria as a research benchmark country between 2010-2019 and to identify the impact of the level of GDP on these indicators. The descriptive statistics and linear regression analysis are used. Most life quality indicators reveal that the level of the V4 countries is better than the EU 27 average or the same. In conclusion, 61.5% of variables in all countries related to research hypothesis was confirmed, which means that the GDP growth had a positive effect on the improvement of the quality of life within these variables. However, comparing to Austria as a highly developed country, a significant sustainable development gap can be still observed in V4.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44062333","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/15
Sadik Maloku, Gentjan Çera, Bekim Poleshi, I. Lushi, Zdenko Metzker
{"title":"The effect of relationship quality on contract farming: The mediating role of conflict between trading partners in Albania","authors":"Sadik Maloku, Gentjan Çera, Bekim Poleshi, I. Lushi, Zdenko Metzker","doi":"10.14254/2071-789x.2021/14-3/15","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/15","url":null,"abstract":"","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42822531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789x.2021/14-3/5
M. À. Cabasés, M. Úbeda
{"title":"The Youth Guarantee in Spain: A worrying situation after its implementation","authors":"M. À. Cabasés, M. Úbeda","doi":"10.14254/2071-789x.2021/14-3/5","DOIUrl":"https://doi.org/10.14254/2071-789x.2021/14-3/5","url":null,"abstract":"","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48621146","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-01DOI: 10.14254/2071-789X.2021/14-3/9
K. Wójtowicz, S. Hodžić
Fiscal sustainability should be defined in the relation between public finances and sustainable economy. It requires a fiscal policy aimed not only at a fiscal balance, but also at the well-being of future generations, while taking the economic, social, environmental and institutional dimensions into account. The objective of this paper is to examine the relationship between fiscal sustainability and efficiency on the example of large cities in Poland in the period from 2008 to 2019. In order to obtain empirical results, a data envelopment analysis and panel data analysis were applied, and a fiscal sustainability index was constructed by means of a multidimensional approach. Based on a sample of 66 large cities in Poland, the results showed that there is a negative relationship between fiscal sustainability and efficiency. These results, however, relate to a specific period in the history of Polish cities when the local debt limits were tightened. The improvement in efficiency allowed local government units to allocate saved local expenditures to the partial repayment of previously incurred local debts. By doing so, Polish cities fulfilled tightened fiscal rules, but their service-level solvency decreased.
{"title":"Relationship between fiscal sustainability and efficiency: Evidence from large cities in Poland","authors":"K. Wójtowicz, S. Hodžić","doi":"10.14254/2071-789X.2021/14-3/9","DOIUrl":"https://doi.org/10.14254/2071-789X.2021/14-3/9","url":null,"abstract":"Fiscal sustainability should be defined in the relation between public finances and sustainable economy. It requires a fiscal policy aimed not only at a fiscal balance, but also at the well-being of future generations, while taking the economic, social, environmental and institutional dimensions into account. The objective of this paper is to examine the relationship between fiscal sustainability and efficiency on the example of large cities in Poland in the period from 2008 to 2019. In order to obtain empirical results, a data envelopment analysis and panel data analysis were applied, and a fiscal sustainability index was constructed by means of a multidimensional approach. Based on a sample of 66 large cities in Poland, the results showed that there is a negative relationship between fiscal sustainability and efficiency. These results, however, relate to a specific period in the history of Polish cities when the local debt limits were tightened. The improvement in efficiency allowed local government units to allocate saved local expenditures to the partial repayment of previously incurred local debts. By doing so, Polish cities fulfilled tightened fiscal rules, but their service-level solvency decreased.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":3.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44934888","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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