Issue #1 (Volume 13 2024)
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Articles6
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24 Authors
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15 Tables
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24 Figures
- bibliometric analysis
- borrower
- budget
- bureaucratic quality
- communities
- debt
- debt sustainability
- defense
- deficit
- developing countries
- development
- economic growth
- employment
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Exploring the effect of International Public Sector Accounting Standards adoption on national resource allocation efficiency in developing countries
Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 1-13
Views: 199 Downloads: 118 TO CITE АНОТАЦІЯInternational capital providers such as the World Bank suggest that inefficient resource allocation in developing countries remains a major challenge for borrowing countries. Therefore, the purpose of this study is to examine whether the adoption of International Public Sector Accounting Standards (IPSAS) improves the resource allocation efficiency of developing countries. A robust econometric modeling including fixed effect and Two-Step Generalized Method of Moments is employed on a sample of 64 developing countries between 2005 and 2021. The results are not sensitive to potential endogeneity issues. The findings indicate that the IPSAS coefficient is significantly and positively correlated at a 5% level or higher. This suggests a strong and significant relationship between IPSAS adoption and resource allocation, indicating that using IPSAS improves efficient resource allocation. Additionally, the resource allocation coefficient is positive and highly significant at a 5% level or higher. These results are particularly notable in countries with low bureaucratic quality, suggesting that IPSAS adoption strengthens policies and regulations in the public sector’s financial structure, ultimately leading to more efficient resource allocation. Therefore, these findings imply that adopting IPSAS is crucial for developing countries to ensure efficient resource allocation and attract international capital providers.
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Patterns and trends in research on external public debt management
Mila Razinkova , Tetiana Grynko , Natalia Nebaba , Rostislav Botvinov , Dmytro Pryimachenko doi: http://dx.doi.org/10.21511/pmf.13(1).2024.02Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 14-29
Views: 166 Downloads: 42 TO CITE АНОТАЦІЯThis study undertakes a comprehensive bibliometric analysis of publications pertaining to the external public debt management system. The paper aims to study the evolution of scholarly discourse surrounding the external public debt management domain, highlighting contributions, methodologies, and collaborative networks within the field. The methodology encompasses a multivariate approach, incorporating extensive searches across the three major scientometric databases: Google Scholar (PoP), Scopus (in-built Scopus tools, SciVal), and Web of Science (in-built WoS instruments). The bibliometric analysis extends to contextual, evolutionary, and spatial dimensions, allowing for a comprehensive understanding of the identified clusters. The ensuing clusters serve as a roadmap, categorizing publications based on their contextual relevance, evolutionary trajectory, and spatial focus, which enhances the identification of key works in the field, facilitating a nuanced understanding of the current state of external public debt management research. The synthesis of findings from the content-contextual block emphasizes a primary orientation toward understanding the dynamic interplay between external public debt management and economic development. Furthermore, the contextual-temporal block identifies four distinct stages in the evolution of research focus, highlighting the shifting emphasis over time. A discernible pattern of heightened research activity in external public debt management across various countries in recent decades is revealed through spatiotemporal analysis. The interdisciplinary nature of this field is underscored by the dominance of economics, econometrics, finance, business, management, and accounting in dedicated research.
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The impact of government microfinance program on poverty alleviation and job creation in a developing economy
Timothy Olaniyi Aluko , Innocent Bayai , Prince Chukwuneme Enwereji doi: http://dx.doi.org/10.21511/pmf.13(1).2024.03Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 30-40
Views: 143 Downloads: 37 TO CITE АНОТАЦІЯGovernment initiatives to eradicate poverty in developing countries have included establishing microfinance programs to provide microloans and credit to the less privileged living in peri-urban and rural areas where commercial financial institutions are underrepresented. The study aims to investigate the effect of the South African Microfinance Apex Fund (SAMAF) on poverty alleviation and job creation. This case study targeted 103 beneficiary firms and self-employed individuals to send them questionnaires. The data analysis was primarily exploratory and descriptive. The findings show that the majority, 87%, agreed that the loans they accessed were sufficient for their business plans and needs. In addition, they were able to create at least one additional job after receiving the loan and improve their total business income on average compared to before the SAMAF loan. However, due to the risk of non-repayment of loans by recipients living in informal settlements, most microfinance intermediary institutions were unwilling to expand their operations into such settlements. SAMAF, on the other hand, has flaws, one of which is the slow delivery of funds to microfinance intermediary institutions, which needs to be addressed. The study concludes that to address the credit needs of semi-rural and rural residents, microfinance intermediary institutions must do more to expand into these areas and adopt a more aggressive and creative approach to the development of financial products and expand their access to include more of the poorest and most vulnerable households.
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Resilience of territorial communities amid the war against Ukraine: The role of budgetary instruments
Halyna Voznyak , Khrystyna Patytska , Olha Mulska , Iryna Zherebylo , Danylo Sorokovyi doi: http://dx.doi.org/10.21511/pmf.13(1).2024.04Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 41-54
Views: 81 Downloads: 13 TO CITE АНОТАЦІЯRussia’s war against Ukraine has exacerbated challenges and risks to community development. Improving the ability to withstand the shocks of the external and internal environment, adapt to changes in the security environment, respond to threats, maintain sustainable functioning, and recover to the desired equilibrium will contribute to strengthening the resilience of communities. Budgetary instruments are crucial for ensuring the resilience of communities in such conditions. This study aims to identify the impact of budgetary instruments on ensuring the resilience of territorial communities amid the war in Ukraine (the case of Lviv oblast). The methods include a systemic and structural approach (building an information and analytical model of resilience research) and indicative and GAP analysis (identifying the impact of budgetary instruments on community resilience, in particular, local taxes, transfers, and personal income tax (PIT)). The data of 73 communities in Lviv oblast for 2021–2023 were collected. The study shows that the resilience of the territorial communities of Lviv oblast during the study period was at a moderate and above-moderate level; most were in the zones of resistance (resilience indicators ranging from 0.43-0.65) and decreasing resilience (0.42-0.20); the resilience of 8% was at a critically low level (2022–2023). The results estimate that the resilience of 90% communities in 2024 will not change significantly if military PIT is redirected from local to state budgets, except for those communities whose resilience is highly dependent on the amount of military PIT (the decrease in resilience will range from 12.5 to 4.2 percentage points).
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Management of budget flows under martial law
Kateryna Romenska , Viktoriia Datsenko , Valentyna Samoday , Yurii Puhach , Oksana Dudchyk doi: http://dx.doi.org/10.21511/pmf.13(1).2024.05Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 55-69
Views: 81 Downloads: 13 TO CITE АНОТАЦІЯManaging budget flows under martial law is important to ensure the security and financial stability of the state, helping to mobilize the necessary resources and concentrate them on financing key needs. This paper aims to identify and outline possible measures to balance the movement of budget flows in order to harmonize them with the goals of state policy in the field of national security. The movement of budget flows of income and expenses was assessed, and trends and changes were identified using economic and statistical methods. The assessment results confirmed the need for reasonable planning of budget flows in the context of the impact of unforeseen military events on the process of budget execution in terms of revenues and expenditures, which leads to failure to meet expenditure indicators, causes a lack of financial resources and an increase in the budget deficit. One of these measures is the improvement of budget planning, which is based on the analysis, detection, and assessment of the probability of occurrence and countering the risks related to the state’s financial system. Correlation-regression analysis confirmed the growing dependence of revenues on official transfers from the EU, foreign governments, international organizations, donor institutions, and government bodies. The results obtained are basic for developing measures to balance incoming and outgoing budget flows under martial law. They provide for the obligation to create a financial support system (including international financial aid) while strengthening state financial control measures for the timely, targeted, effective direction of budget flows, including for the security and defense of the state.
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Tax policy and activation of internal factors of economic growth: EU experience for Ukraine
Olena Dobrovolska , Ralph Sonntag , Svitlana Kachula , Liubov Lysiak , Pavlo Lastovchenko doi: http://dx.doi.org/10.21511/pmf.13(1).2024.06Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 70-82
Views: 28 Downloads: 7 TO CITE АНОТАЦІЯThe state policy of Ukraine aims to promote sustainable economic growth and improve its quality through economic activity, particularly through the optimization of the tax system, which is particularly relevant both during the period of martial law in Ukraine and the post-war recovery. The purpose of the study is to assess the formation and implementation of the state tax policy to activate the internal factors of economic growth in Ukraine under martial law. The study of tax policy in Ukraine and EU countries has shown that the EU countries are characterized by a consistent and transparent tax policy that stimulates investment, innovation, and entrepreneurship to activate internal factors of economic growth. The paper uses fiscal analysis based on the Cobb-Douglas production-institutional function; its main concept is the mutual location of the Laffer points of the first and second types and the actual level of the tax burden. The results show a noticeable adjustment of the real fiscal climate in Ukraine in line with changes in threshold fiscal standards. Considering martial law in Ukraine and the need for the state’s ability to post-war recovery, the study suggests changing the rates of specific taxes, after which it is necessary to make a transition from private fiscal instruments with inherent rate values to the aggregate fiscal burden.