Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities

This paper aims to examine whether the status of fiscal decentralization generates efficiency in local spending behavior and leads to local fiscal performance and local economic growth, revealing not only the status of Romania from the point of vertical fiscal imbalance but also the fiscal implicati...

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Main Authors: Mihaela Onofrei, Ionel Bostan, Elena Cigu, Anca Florentina Vatamanu
Format: Article
Language:English
Published: MDPI AG 2023-01-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/11/1/22
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author Mihaela Onofrei
Ionel Bostan
Elena Cigu
Anca Florentina Vatamanu
author_facet Mihaela Onofrei
Ionel Bostan
Elena Cigu
Anca Florentina Vatamanu
author_sort Mihaela Onofrei
collection DOAJ
description This paper aims to examine whether the status of fiscal decentralization generates efficiency in local spending behavior and leads to local fiscal performance and local economic growth, revealing not only the status of Romania from the point of vertical fiscal imbalance but also the fiscal implication of spending decentralization and local government effectiveness. The methodological background includes qualitative sequential methodology, involving empiric analysis that provides coherence and viability for our study, but also quantitative methods, including Ordinary Least Squares regression (OLS). The empirical results show that fiscal decentralization determines more responsible and efficient local spending, enhancing local performance and contributing to economic growth. Furthermore, the analysis provides evidence on the importance of local fiscal consolidation and gives an overview in terms of spending responsibilities between the central government and local government. The paper contributes to the literature that studies fiscal imbalance, as well as the fiscal implications of decentralized spending and the effectiveness of local governments in driving economic growth. It also contributes to the literature that studies the relationship between fiscal decentralization and local economic growth, as well as the effectiveness of government reforms and strategies.
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spelling doaj.art-a8d62849e7c5451f951d140eb8e08b4a2023-11-30T21:56:03ZengMDPI AGEconomies2227-70992023-01-011112210.3390/economies11010022Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian MunicipalitiesMihaela Onofrei0Ionel Bostan1Elena Cigu2Anca Florentina Vatamanu3Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, 700107 Iasi, RomaniaFaculty of Law and Administrative Sciences, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, RomaniaFaculty of Economics and Business Administration, Alexandru Ioan Cuza University, 700107 Iasi, RomaniaFaculty of Economics and Business Administration, Alexandru Ioan Cuza University, 700107 Iasi, RomaniaThis paper aims to examine whether the status of fiscal decentralization generates efficiency in local spending behavior and leads to local fiscal performance and local economic growth, revealing not only the status of Romania from the point of vertical fiscal imbalance but also the fiscal implication of spending decentralization and local government effectiveness. The methodological background includes qualitative sequential methodology, involving empiric analysis that provides coherence and viability for our study, but also quantitative methods, including Ordinary Least Squares regression (OLS). The empirical results show that fiscal decentralization determines more responsible and efficient local spending, enhancing local performance and contributing to economic growth. Furthermore, the analysis provides evidence on the importance of local fiscal consolidation and gives an overview in terms of spending responsibilities between the central government and local government. The paper contributes to the literature that studies fiscal imbalance, as well as the fiscal implications of decentralized spending and the effectiveness of local governments in driving economic growth. It also contributes to the literature that studies the relationship between fiscal decentralization and local economic growth, as well as the effectiveness of government reforms and strategies.https://www.mdpi.com/2227-7099/11/1/22budgetary resourceslocal communitiescurrent social-economic contextfiscal decentralizationspending efficiencyfiscal imbalances
spellingShingle Mihaela Onofrei
Ionel Bostan
Elena Cigu
Anca Florentina Vatamanu
Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities
Economies
budgetary resources
local communities
current social-economic context
fiscal decentralization
spending efficiency
fiscal imbalances
title Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities
title_full Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities
title_fullStr Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities
title_full_unstemmed Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities
title_short Ensuring Budgetary Resources at the Level of Local Communities in the Current Social-Economic Context: Evidence for Romanian Municipalities
title_sort ensuring budgetary resources at the level of local communities in the current social economic context evidence for romanian municipalities
topic budgetary resources
local communities
current social-economic context
fiscal decentralization
spending efficiency
fiscal imbalances
url https://www.mdpi.com/2227-7099/11/1/22
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