Blockchain Papers

David Lee Kuo Chuen

No abstract is available for this record.

Jana Marasová, Mária Horehájová

No abstract is available for this record.

Lisa Passavant-Guion

For some years (2008-2010), territorial authorities have been facing a drastic decrease in their resources. The local business tax reform in 2010 has slowed down the dynamism of tax revenues. The regional political representatives no longer have the ability to determine the tax rate. The funds allocated by the State, after having first experienced a freeze in their value, are now reduced as a consequence of successive « stability », « responsibility » and "growth" pacts introduced by different governments. In parallel, the transfers of competences at the beginning of the 2000’s (rail transport and the second act of decentralization) are causing increasingly rigid financial charges for the Regions. Our research aims to understand the causes of these transformations and to qualify the changes that are impacting regional resources. It seeks to determine if there is a growing financialisation of regional politics or if, on the contrary, there is still some local political control despite budgetary constraint. Through a comparative analysis of three Regions (Limousin, Alsace and Nord-Pas-de-Calais), and based on the observation of the reorganization that is happening within regional institutions, our thesis envisages to understand how the political / financial duo evolves in a framework of unprecedented budget constraint.

Martina Halásková, Renata Halásková

Local financing in advanced countries enables local governments to assess real local priorities as well as limitations. The present paper deals with financial capabilities of local governments for the development of public services, local government expenditure and fiscal expenditure decentralization in the EU28. By use of cluster analysis, local public expenditures are assessed by selected COFOG functions, as % of total local government expenditures in years 2010-2013. The results proved the largest differences in the set of countries in local government expenditures on social protection and the smallest differences in local expenditures on recreation and cultures, housing and community amenities.

Z. Bakonyi, Balázs Muraközy

This study analyzes which types of firm-level shocks were associated with the centralization of strategic decision-making during the recession of 2008-09. We use a unique survey dataset of more than 14000 manufacturing firms from seven European countries which includes direct information on whether the firms centralized or decentralized their strategic decision-making process. Motivated by theoretical approaches claiming that organizations under considerable stress are more likely to centralize, we use multinomial logit models to test whether firms facing a larger fall in turnover, employment, investment or having to postpone their innovations were more likely to change their decision-making process. We find evidence that employment change and postponing innovations are indeed associated with centralization even when we control for ownership, group structure, financing, management, and strategy.

Carmen Maria Constantinescu, Mirela Anca Postole

This article analyses aspects of public financial decentralization in Romania, enlightening major problems in public money allocation at county’s administrative level. Actual public finance law and state budget law allow inefficiency and inequity in local public money spending. This happens, in our point of view, because of many rules, criteria and computations missing economic fundamentals and which skip state’s principal objective: to insure citizens’ welfare by providing public goods and services. Our research finds which Romanian counties have difficulties to satisfy local public needs, by confronting financial decentralization level, economic development and public expenditures.

Jolanta Gałuszka

During the past two decades, decentralization as a silent revolution in public sector governance has generated a keen interest in a large number of countries including Poland. However, this notion is very difficult to define as it refers to a wide range of institutional arrangements on the political, economic and social levels. There are many good reasons why allocating fiscal resources and budget transfers among levels of government must come after a strict assignment of spending powers. The aim of this chapter is to point out the basic characteristics of financing system of local government in Poland. The chapter examines the structure of local revenues and the problem of financial autonomy. The research shows that the Polish public sector is already considerably decentralised, however the level of financial autonomy of local governments is low and the local revenues are unable to cover expenditures. Thus, the amounts of local public debt keep expanding. Though a system of equalizing grants was introduced to diminish horizontal fiscal imbalances, its' efficacy is still limited.

Manole Tatiana

In this article the author analyses the process of decentralization and financial autonomy as a result of using the new methodology for drafting the local budgets based on formulas. The key element is researching the impact of the new financing system on changes occurring in the communities. The new financing system is a chance for the citizens of communities to have quality services and local public administration has new opportunities to increase the tax base, supplement their incomes and provide a higher level of living to citizens.

Cornelia Pop, Maria-Andrada Georgescu

Under the combined pressure of increased urbanization, fiscal adjustments and decentralization, central governments were pushed towards accepting the idea of local government accessing the private finance sources for their public infrastructure and service development investments. While the importance of borrowing increases for local developments, the main challenge many small municipalities have to face is the difficulty to access private financing sources. One obstacle is related to the creditworthiness of the municipal debtor or bond issuer. Sub-national governments can overcome the problem of creditworthiness through the use of credit enhancement mechanisms or techniques. The present paper is the first to discuss the situation of credit enhancements for Romanian municipal bond financing, its consequences and the path that might be followed for their further development. The absence of appropriate credit enhancements can be considered among the factors that contributed to the underdevelopment of the Romanian municipal bond market segment mainly between 2011 and 2014. In order to improve the municipal bond market profile, Romanian local governments should not ignore credit enhancements for any future bond issue and a combination of internal credit enhancements and bond pooling, as external credit enhancements seem to provide a feasible solution.

Nadejda Berghe

The present theme is conditioned by the directions of public finance reform in Moldova. The aim of the research is focused on assessing the fiscal decentralization in the Republic of Moldova, aimed at: analyzing financial decentralization conceptual approaches and examining amendments to the administrative and legislative level to strengthen the level of fiscal decentralization in the country. Research methodology is based on processes and of legislative analysis, as well as on literature. As a result, it appears that in Moldova was first adopted a policy document that clearly dimensioned an action plan to achieve a qualitative decentralization in all areas and village structures. Therefore, the author conducted a comprehensive analysis of the process of reforming the central and local public administration in Moldova, presenting argumentative scientific conclusions and formulating own recommendations which would contribute to the continuity of the reform and strengthening budgetary fiscal capacity.

Györgyi Nyikos, Robert Tałaga

Currently the preparation of the new 2014-2020 multiannual financial framework period is taking place in all areas - e.g. the sectorial legislation, such as the establishment of the new system of Cohesion Policy, is in progress. The rules are being formed in the spirit of a new approach; result orientation will become the main goal which requires a change of attitude in the operation of the institution system. Poland and Hungary are two cohesion countries, both of them using a significant amount of structural funds to finance public investments. Despite the common regulation at EU level the two countries are seemingly choosing different solutions in order to guarantee smoother implementation that will allow policy objectives and results to be achieved more effectively – Hungary is centralizing and Poland is rather decentralizing the system. What is behind this phenomenon? Which is the best way to strengthen the efficiency of the cohesion policy? Our paper will present the institutions systems and mechanism, administrative procedures working in the cohesion policy and compare the Polish and Hungarian systems. It will analyze the directions of changes under the new cohesion policy regulation with regard to the functioning institutions system and national specificities. At the end of our analysis we try to identify good practices and make general recommendations.

Ali Rıza ÖZDEMİR

Public sector viewed as important with its numerous functions for a long time has recently become the locus of criticisms by many due to its unproductive and excessive size. One of the most emphasized factors which downsizes the public sector and makes it more efficient is the decentralization, moving more weight of this sector towards local administrations. There in fact, exists some predictions of how decentralization, leaving more of the public services and revenue sources to finance them, to sub-national government provides discipline in public sector. In this study, the disciplinary effects of decentralization on the public sector is tested using panel corrected standard errors procedure and the from OECD countries. The results show that decentralized public services and taxes up to some degree, limits the growth of public sector

Paruedee Nguitragool, Jürgen Rüland

Neo-functionalist scholarship has made one of the first systematic attempts to explain why and under what circumstances regional organizations act cohesively in global forums. Known as the externalization hypothesis, Schmitter (1969; 1971) and Nye (1967; 1971) have argued that with progressive regional integration member states of a regional grouping tend to develop an interest in becoming a cohesive actor vis-à-vis third states. The motivation to centralize policies towards the extra-regional world is largely defensive: to safe-guard the economic benefits reaped from closer regional cooperation (Haas and Rowe 1973: 4), to reduce external dependence of member states and, at the same time, protect their foreign policy autonomy ( ibid . 5). In a mutually reinforcing relationship, externalization is also believed to foster regional integration insofar as developing joint positions towards outsiders creates a need for increased internal consultation, communication, coordination, harmonization and, hence, institutionalization ( ibid . 6). Externalization, in other words, has a dual effect: it helps to curtail the “exogenous determination of the external conditions of regional organizations” and, vice versa, creates conducive conditions for deepening regional integration (Schmitter 1971: 244; Jorgensen-Dahl 1977: 36). In an empirical study Haas and Rowe tested eighteen regional organizations on externalization (Haas and Rowe 1973). In their research design they posited that primarily the material institutional properties such as functional specificity, homogeneity and autonomous central authority would influence the cohesiveness of regional organizations in global forums. The more functionally specific, the more homogenous the membership and the more centralized the organizational structure, they argued, the greater the likelihood is that a regional organization will act cohesively in global forums. By contrast, regional organizations with a broad functional scope, a diverse membership and a decentralized organizational structure are expected to be less united in global institutions. As the measure for cohesiveness they used the voting behavior of regional organizations in the United Nations General Assembly ( ibid .).

Lucian Gãban, Liviu Bechio

In this paper the authors present important aspects of local autonomy seen through the lenses of decentralization and regionalization. It shows that local finance can contribute to community development only to the extent that the law provides financial autonomy so that the administration can attract European funds for local projects.

Adelheid Holl, Ruth Rama

There is broad agreement among economists and policy makers that economic growth is nowadays largely driven by the capacity of firms to innovate. The financial and economic crisis that started in late 2007 has had a far reaching impact on countries around the world. Spain has been one of the countries worst affected. As a result, the government has reduced public funding in R&D. At the same time, the continued credit crunch has dramatically worsened the possibilities for financing new ideas and projects. One of the consequences of the economic crisis is that many companies have reduced their innovation-related activities; however, some firms have been more resilient than others and recent studies also show that there are important differences across countries regarding the degree to which the economic crisis has affected firms? innovation investment. It has been argued that national institutional settings and the structural characteristics of national innovation systems have played an important role in shaping how firms have responded to the crisis. However, within a country, regions may also matter. Learning processes underlying innovation are localised and locally embedded, and regional innovation systems (hereafter, RISs) may play a role too. Spain provides an interesting setting for analysing the role of regions, as it is a country with a highly decentralized unitary state with a unique framework of territorial administration. Spanish regions have very diverse economies and also different degrees of fiscal and political autonomy. They vary greatly in terms of their innovation performance as well as regarding their regional innovation and technology policies. Moreover, their responses to the economic crisis in terms of regional policies have not been the same. A focus on regional difference can contribute to a better understanding of the innovation strategies employed by firms during the crisis. To date, we still know very little about regional differences and the degree to which regions have shaped firms' innovation behaviour in response to the economic crisis. Our analysis contributes to this literature by drawing on a large national sample of micro-data for Spanish manufacturing and service sector firms. Our results show that the crisis has discouraged a significant number of firms from engaging in innovation. These have been mainly small firms and occasional R&D performers. Significant regional differences are also found in the degree to which the crisis has affected firms? innovation expenditures, even after controlling for sectoral differences and firms? structural characteristics. The Basque Country stands out in our analysis. Firms with R&D employment in this region show a significantly lower probability of having abandoned innovation activities and a somewhat higher probability of even having increased their innovation effort. This regional effect has been especially important for small and medium sized companies.

Magoulios George, Pretsios Nikos

Greece's residual type of welfare model is facing the past six years an intense pressure caused by the economic crisis (2008) and the emergence of new social risks. Restrictive policies and internal devaluation process adopted to restructure economy, underestimated the social impact. The State, choosing a different welfare model with emphasis on commodification and selective services, gradually withdraws from the implementation of social policy, seeking, through administrative reforms, to transfer responsibilities to local government, without, however, the necessary funding. At the same time, European Union's social policy, despite its rhetoric and some initially ambitious efforts, particularly with the Treaty of Lisbon, shows inability to create a “community acquis”, which would contribute decisively to the Europeanization of the southern countries. By applying “soft law” measures and always based on the principle of subsidiarity, European strategy is confined, almost entirely, to an application of employment support measures, primarily seeking to improve competitiveness and meet the financial objectives of Monetary Union. The study of basic economic and social EU-28 indices for the period 2008-2012, confirms that diversification of welfare models has a crucial effect in mitigating income inequality and reducing the risk of poverty, enhancing therefore, the dispute over theoretical approaches that support the adequacy of policies related to economic growth. This paper attempts, given the aforementioned conditions, to present the current situation in local government organizations, both from the structures and the financing means perspective, based on a primary research, conducted for this purpose using a structured questionnaire filled by competent executives of all municipalities in the Prefecture (now regional unit) of Thessaloniki. Research findings, though highlighting the efforts to substitute central government's role in an institutional context, constantly under reform, indicate that municipalities are facing significant efficiency problems. Social policy is exercised by different organizational units without integrated strategic planning, new structures which were created primarily to address poverty are inadequate to meet the actual needs and funding is limited in an effort to replace the reduced own resources through European programs, without seeking future alternative sources. The acute lack of human resources and coordination, adversely affects evaluation of local government's social policy. The findings also intensify the concern about structures sustainability and the capacity of municipalities’ overall support, but at the same time detect needed interventions in order to implement an efficient decentralized policy, which will become an essential factor of social cohesion and prevent escalation of social exclusion.

Gheorghe Zaman, George Georgescu

The paper focuses on the complex dialectics between endogenous and exogenous components of local and territorial economic development, emphasizing the idea of the particular consistency of internal growth factors and the importance, in this context, of financial means for activating the endogenous potential in the case of Romania. The county was considered as statistical observation unit for the period of analysis 2007-2013 and the data were disaggregated on bank loans, FDI, research and development expenditures, European structural and cohesion funds, local budgets expenditures. It was found that the more developed counties have better chances to achieve higher performances of endogenous development. The study highlighted the need of a policy mix that would support the development of counties with a relatively low development level, actually most of them, under the circumstances of a polycentric regional development. An optimal combination between top-down and bottom-up interventions may prove to be the most successful, offering an effective compatibility of decentralization with the coordination and monitoring requirements, supporting the smart specialization at county level, not excluding spillover effects at community and national levels.

Izabella Barati-Stec

This paper reviews the waves of democratization and the development of the public administration and public finances in Hungary, with special attention municipalities caused by the changes in sub-national finance regulation since 2010. During the transition yeas, Hungary was very forward looking and the first among CEE countries to end central planning and to introduce market rules into the economy. Everybody expected the decentralization to be a success story. 25 years later, Hungary not only failed to meet the expectations, but also undergone though a situation in 2008 to start a massive recentralization process. This paper puts fiscal decentralization in Hungary in a historical context while critically investigating the findings of recent literatures on decentralization process in Hungary. The critical investigation of past experiences and reform steps of the current government suggest possible reform measures to solve the financial problems of Hungarian municipalities.

Entela Hoxhaj

The purpose of this paper is to give a general overview on the decentralization process and on the financial autonomy of local government units in Albania. The principal base for the analysis done is the legal framework, accompanied shortly with examples of its implementation in several communes or municipalities. The paper is organised in 3 issues, which treat respectively the organization of local government in Albania, decentralization of functions and responsibilities in favour of the units of local government, and their budget and resources of financing. There has been some difficulties in practice during decentralization process raised out when fulfilling the whole legal framework on exercising exclusive and shared competences of local units of government, because of the dependence by the respective institutions for the implementation of legal acts for exclusive and shared functions in the fields of education, economic support and health care, and by lack of funds of the responsible ministry to transfer the service of water supply. In Albania seems yet early to give right importance to regions, and especially with regard to the aspirations for European integration many challenges raise to the Albanian institutions.

Елена, Rusu

The sustainable development became a goal for knowledge society, but one of the main question in literature remains as how close is the relationship between economic dvelopment, knowledge society and local governments' level. Given the great diversity of situations and frameworks both across countries and within them in the European Union, I consider that each country must have own policies designed to implement process of decentralization with the commitment of "healthy" economy in a society dominated by the technology and innovation. In this context, the problem occurs in decentralization should be managed on two levels: on the one hand in terms of central-local budgets relations, and on the other hand, in the local public finance structural plan. The paper will try to emphasize the connection between decentralization, local economic sustainable development and knowledge society, taking into account an overview of this three aspects and empirical evidences. In this regard, I will use the background offered by literature and the official statiscal data for analysis to identify the variables which explain decentralization and local economic development in the knowledge society. I estimate the analysis to confirm the hypothesis that there are good aspects, but also deficiencies that require solutions and budgetary policy options as part undisputed positioning local government finance as an engine of development of the whole nation. I consider that the paper can be a useful viewpoint in understanding local public finances in decentralization, which allows researchers to include other sources of information for researching an in a much more complex approach.

Andrew Graham

In the context of the financial management improvement, it has been given and will continue to be given priority to decentralization of responsibility management in public finance, through the provision of the right of use of Government Financial Informatics System (GFIS) to general governance institutions, concerning the process of executing their budget. Also the direct use of GFIS from those mentioned above is accompanied by the addition of internal controls in the procurement phase of public funds. Monitoring of financial management in the public sector is important not only for affecting directly in the efficient and economic use of public funds, but it significantly affects in the establishment of a sustainable culture in the better use of public funds. The country is aspiring to be a European Union member and consequently increasing the financial management performance constitutes a continuing objective of all governments. The legal framework and units and institutions that do monitoring of public financial management, are newly created, they continue their quest to grow and consolidate.

Iulian Stănescu

This study features an analysis of the regionalization – decentralization process, on three dimensions: public policy, the relationship over time between decentralization and the development gap between the different areas of Romania, and the public opinion on this issue. The public policy dimension focuses on the content of the regionalization – decentralization process through the analysis of social documents, in this case, the three official documents issued by the Cabinet and parliament. The aim of the decentralization process is a substantial transfer of public services, areas of responsibility and funds from the central Government to the local government – regional, county and local councils. A secondary objective, but with maximum visibility, emerges through the regionalization component: the creation of administrative regions. This entails a change of the territorial administrative structure of Romania and requires a revision of the Constitution. The second dimension of decentralization deals with the results up to this point, as revealed by a longitudinal analysis over more than a 15-year period public financing and development indicators, at national and administrative unit level. During this timeframe, development gaps increased dramatically. Through the mechanism governing local budgets, decentralization acted as a accelerator for increasing inequality. Public opinion represents a third dimension on decentralization. The secondary analysis of a nationwide opinion poll on this issue focused on its notoriety, the general attitude of the population and the public opinion depth of the support for decentralization. The general attitude regarding the decentralization bill could be summed up as conformist and positive. The vulnerability of the support for decentralization comes from several sources, such as: the association with the corruption and “local barrons” metaphor, its lack of priority on the public agenda, and the polarization potential of regionalization.

Martina Halásková, Renata Halásková

Successful decentralisation joins public finances and fiscal authority with the responsibility for providing services with functions of local government. The paper deals with decentralisation of public administration in EU countries, focusing on fiscal decentralisation and local government expenditures, allocated for financing the requirements of local and regional sector. Attention is paid to theoretical aspects, reform tendencies, approaches and measuring fiscal decentralisation, but also to the role of local budgets when providing for public services. The research proper is concentrated on the extent of expenditure decentralisation in EU countries over the years 2001-2012 and on mutual relations of local government expenditures, seen as % of general government expenditures, and as % of GDP.

Dimitris Manolopoulos

Purpose – The purpose of this paper is to explore the link between R&D internationalization and finance decisions by providing survey evidence on the funding sources of R&D in light of recent perceptions of MNEs' decentralized knowledge-related competitiveness. Design/methodology/approach – The study draws upon a survey of 83 decentralized R&D units located in countries outside the EU core of mature economies. Funding sources are classified as MNE-internal and external. Using simulation-based models, six ordered probit regression models were run with each funding source forming the dependent variable. Findings – There are three significant findings. First, decentralized R&D funding relies mainly on MNE-internal sources. Second, decentralized R&D funding patterns reflect on the interdependencies within an overall MNE R&D strategy that is articulated through varied laboratory roles. Third, while the strategy-finance interaction is confirmed, the prevalence of parent funding is challenged. Instead, evidence recorded here suggests support for the decentralized, “subsidiary-focused” perspective that has recently regained a considerable momentum in the literature. Research limitations/implications – Notwithstanding that this study reinforces the interaction between strategic decisions and funding patterns, more work is required to identify the effects of other aspects of strategy on the funding sources of decentralized R&D activity. However, it is seemingly the first study that investigates MNEs' R&D financial decisions in economies outside the EU core, incorporating also a wide array of external funding sources. Practical implications – Funding choices for decentralized R&D labs should be contingent upon their unique contribution to the competitive evolution of the MNE group. Further, R&D activity seems to leverage the autonomy of subsidiary managers. Originality/value – This research is one of the very few empirical studies providing evidence on the funding sources of decentralized R&D laboratories, and suggests possible predictors that have not been put forward hitherto.