Issue #3 (Volume 14 2025)

Type of the article: Research Article

Abstract
This study aims to examine the interrelation between public budgeting transparency, public participation, government regulation, local government financial capacity, and public trust in shaping local government accountability in heritage asset management. The study focuses on West Sumatra, Indonesia, where local governments play a crucial role in preserving cultural heritage assets. The sample included 250 local government employees actively engaged in heritage asset management. Data were collected using a structured questionnaire between March and June 2024, with responses analyzed using WarpPLS. The study rigorously adheres to ethical principles to protect the participants and ensure the integrity of the research process. Results indicate that public budgeting transparency (β = 0.165, p = 0.003) and local government financial capacity (β = 0.143, p = 0.004) both directly and indirectly, via mediating public trust, influence local government accountability (β = 0.193, p = 0.003). Government regulation (β = –0.012, p = 0.433) was not found to have any direct significant impact on accountability. On the other hand, public trust and government regulatory systems have a strong direct relationship with local government accountability but a weak indirect relationship through public trust, which makes governance mechanisms pretty complex. Public trust plays a vital role in connecting transparency, financial resilience, and accountability to the legitimacy of enforcement and effective governance. The findings underscore the significance of integrating trust-building measures, transparency, and financial capacity for governance frameworks to ensure equitable and sustainable heritage asset management.

Type of the article: Research Article

Abstract
This paper investigates the determinants of local public investment in Morocco, a country undergoing decentralization and facing persistent regional disparities. The study aims to identify the key factors driving capital expenditure across Morocco’s 12 regions and their local governments, including regional, provincial, and municipal councils, from 2017 to 2024. A dynamic panel of 96 observations is constructed, and a generalized method of moments (GMM) estimator is applied to address endogeneity, control for regional fixed effects, and account for the temporal persistence of investment. The choice of GMM is supported by prior descriptive analysis and the absence of spatial autocorrelation, confirmed by Moran’s I test. The results show that financial resources play a central role in shaping regional investment levels. Specifically, both own-source revenues and central government transfers have a positive and statistically significant effect on investment, with elasticities of 0.43 and 1.35, respectively. Public debt also contributes positively (0.21%), suggesting its potential as a complementary financing tool. In contrast, personnel expenditure exerts a crowding-out effect (−0.48%), reducing the fiscal space available for investment. Other operating expenditures and regional population show no significant impact. The model is robust (R² = 0.757) and satisfies the Hansen test (p = 0.095). Overall, the findings highlight the decisive role of financial autonomy and the effectiveness of intergovernmental transfers in enhancing the investment capacity of local governments. The results also call for better management of operating expenses to avoid limiting capital investment potential.

Type of the article: Research Article

Abstract
This study aims to examine the effect of budgetary participation, organizational commitment, motivation, and budget transparency on local government performance, with psychological capital as a moderating variable. Budgetary participation refers to the involvement of local government employees in the budgeting process, while psychological capital reflects their optimism, resilience, and confidence in decision-making. This analysis was conducted in Central Java, Indonesia, from June to August 2024 using a quantitative approach. A structured survey was conducted by distributing questionnaires to respondents consisting of 250 employees in local work units involved in financial management, policy implementation, and service provision. After being selected based on their professional knowledge and direct involvement in the governance and budgeting process, 221 respondents were considered valid. Strict ethical guidelines were adhered to in order to protect participants and maintain the integrity of the research process. The results show that budget transparency and motivation significantly improve government performance. Thus, both are important in the governance process. Psychological capital strengthens the influence of budgetary participation, organizational commitment, and budget transparency on local government performance. Motivation has a direct and substantial contribution to local government performance without being moderated by employee psychological traits such as optimism and self-confidence. Employees' motivation drives their performance regardless of their psychological capital. This is in contrast to budgetary participation and organizational commitment, which require psychological support to enhance their effects. This study contributes to governance research in highlighting the psychological aspects of budgetary participation, organizational commitment, and transparency.