IDEAS home Printed from https://ideas.repec.org/a/aic/ejpair/y2023v06p21-34.html

Factors Influencing Local Government Investment Decision

Author

Listed:
  • Florin Oprea, Andrei Dascalu

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

Local communities’ sustainable development represents a key topic on public governments’ agenda, thus raising the problem of social and economic growth determinants, which could be shaped throughout promoted public policies. In this context, public investment plays a crucial role, being considered as a main trigger of local development on medium and long term, in close connection with the quality of the associated decision-making process. Under democratic values as decentralization, local autonomy and self-government, public investment decisions are configured by local authorities while facing particular constraints or influence factors, both related to endogenous sources (e.g. administrative capacity, legal collaborative partners, competence or legal constraints) or exogenous ones (as financial market conditions, corruption, institutional arrangements, politics etc.), which are in the end affecting the quality of the adopted decisions. From this perspective, our study aims first to identify the factors potentially affecting the local governments’ investment decision, to emphasize the particular transmission channels of their influence and to reveal their potential expected impact. On this base, we also aim to suggest some alternatives to counteract the negative effects of the discussed factors, as useful inputs for (new) public policies.

Suggested Citation

  • Florin Oprea, Andrei Dascalu, 2023. "Factors Influencing Local Government Investment Decision," European Journal of Public Administration Research, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0, pages 21-34, June.
    • Handle: RePEc:aic:ejpair:y:2023:v:06:p:21-34
    as

    Download full text from publisher

    File URL: https://eu-pair.uaic.ro/wp-content/uploads/2023/11/21-34.-OPREA_Dascalu.pdf
    Download Restriction: no
    File URL: https://eu-pair.uaic.ro/june-2023/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Emranul Haque & Richard Kneller, 2008. "Public Investment and Growth: The Role of Corruption," Centre for Growth and Business Cycle Research Discussion Paper Series 98, Economics, The University of Manchester.
    2. Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 867-893, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:wbk:wbpubs:7173 is not listed on IDEAS
    2. Kappeler, Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2013. "Does fiscal decentralization foster regional investment in productive infrastructure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 15-25.
    3. Mandel Philipp & Süssmuth Bernd, 2015. "Public Education, Accountability, and Yardstick Competition in a Federal System," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(4), pages 1679-1703, October.
    4. Skoufias, Emmanuel & Narayan, Ambar & Dasgupta, Basab & Kaiser, Kai, 2011. "Electoral accountability, fiscal decentralization and service delivery in Indonesia," Policy Research Working Paper Series 5614, The World Bank.
    5. Benjamin Larin & Bernd Süssmuth, 2014. "Fiscal Autonomy and Fiscal Sustainability: Subnational Taxation and Public Indebtedness in Contemporary Spain," CESifo Working Paper Series 4726, CESifo.
    6. Gianmarco Daniele & Amedeo Piolatto & Willem Sas, 2018. "Who Sent You? Strategic Voting, Transfers and Bailouts in a Federation," Working Papers. Serie AD 2018-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    7. Soumyadip Chattopadhyay & Asmita Kar & Anamika Chanda, 2025. "COVID-19 and fiscal health of selected cities in India," SN Business & Economics, Springer, vol. 5(12), pages 1-17, December.
    8. Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2006. "Decentralization And Effiency In Spanish Local Goverment," Working Papers. Serie EC 2006-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    9. Russell S. Sobel & Nabamita Dutta & Sanjukta Roy, 2014. "Does fiscal decentralization result in a better business climate?," Chapters, in: Robert F. Salvino Jr. & Michael T. Tasto & Gregory M. Randolph (ed.), Entrepreneurial Action, Public Policy, and Economic Outcomes, chapter 9, pages 151-176, Edward Elgar Publishing.
    10. Bird, Richard M. & Smart, Michael, 2002. "Intergovernmental Fiscal Transfers: International Lessons for Developing Countries," World Development, Elsevier, vol. 30(6), pages 899-912, June.
    11. Kornelis Kopong Bolen & Payamta -, 2019. "The Effect of Financial Performance and Balanced Funds on Capital Expenditure of Local Government in District/City in Indonesia," Journal of Public Administration and Governance, Macrothink Institute, vol. 9(4), pages 129-147, December.
    12. Astghik Mavisakalyan, 2013. "Development Priorities in an Emerging Decentralized Economy: The Case of Armenia’s Local Development Programs," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 20(1), pages 105-118, April.
    13. Jacob, Gaidimlung K., 2026. "Do Fiscal Transfers Stick under Fiscal Stress? Evidence of the Flypaper Effect from Manipur, North-Eastern Region of India," Working Papers 26/446, National Institute of Public Finance and Policy.
    14. Ehtisham Ahmad, 2010. "Improving Governance in Pakistan: Changing Perspectives on Decentralisation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 283-310.
    15. Paulus, Michal & Kristoufek, Ladislav, 2015. "Worldwide clustering of the corruption perception," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 428(C), pages 351-358.
    16. Mar√≠a Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    17. Emilie Caldeira & Martial Foucault & Gregoire Rota-Graziosi, 2015. "Decentralization in Africa and the nature of local governments’ competition: evidence from Benin," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(6), pages 1048-1076, December.
    18. Perotti, Roberto & Labartino, Giovanna, 2011. "Academic Dynasties: Decentralization and Familism in the Italian Academia," CEPR Discussion Papers 8645, Centre for Economic Policy Research.
    19. Jinqian Deng & Na Zhang & Fayyaz Ahmad & Muhammad Umar Draz, 2019. "Local Government Competition, Environmental Regulation Intensity and Regional Innovation Performance: An Empirical Investigation of Chinese Provinces," IJERPH, MDPI, vol. 16(12), pages 1-17, June.
    20. Victoria Gunnarsson & Peter F. Orazem & Mario A. Sánchez & Aimee Verdisco, 2009. "Does Local School Control Raise Student Outcomes? Evidence on the Roles of School Autonomy and Parental Participation," Economic Development and Cultural Change, University of Chicago Press, vol. 58(1), pages 25-52, October.
    21. Ruben Durante & Giovanna Labartino & Roberto Perotti, 2011. "Academic Dynasties: Decentralization and familism ind the Italian academia," Working Papers hal-03609936, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:ejpair:y:2023:v:06:p:21-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.