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The structural changes in Armenian Community budgets within the process of community consolidation

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  • Tsovinar J. Karapetyan
  • Arpenik Muradyan
  • Vanine A. Yeranosyan
  • Erik M. Grigoryan

Abstract

This paper investigates the financial decentralization in the Republic of Armenia (RA) within the context of community consolidation processes that started in RA in 2015. It presents conclusive and empirically tested interpretation of the changes in the own‐sourced revenues of the community budgets due to consolidation processes and assesses the pace and direction of changes in the weight of own‐sourced revenues in the consolidated vs. non‐consolidated community budgets using β‐ and σ‐convergence models. It has examined the data collected from 501 communities in RA from 2015 through 2018. The results of the research pinpoint that the growth pace of own‐sourced revenues is higher in the consolidated communities as compared to non‐consolidated communities. This evidence supports the initial hypothesis specified in the “Concept of community consolidation and formation of intercommunity units” adopted by the Government of RA, that the consolidation of communities will result in expansion of the revenue generation capacity of the newly formed communities, which needs to be disseminated by policy‐makers in non‐consolidated communities to support the even transition process of the further consolidation that will relaunch after the Velvet Revolution of 2018. En este artículo se investiga la descentralización financiera en la República de Armenia (RA) en el contexto de los procesos de consolidación comunitaria que se iniciaron en la RA en 2015. Se presenta una interpretación concluyente y empíricamente comprobada de los cambios en los ingresos de fuentes propias de los presupuestos comunitarios debido a los procesos de consolidación y se evalúa el ritmo y la dirección de los cambios en la importancia de los ingresos de fuentes propias en los presupuestos comunitarios consolidados frente a los no consolidados, para lo cual se utilizaron modelos de β convergencia y σconvergencia. Se examinaron los datos recopilados de 501 comunidades de la RA desde 2015 hasta 2018. Los resultados de la investigación señalan que el ritmo de crecimiento de los ingresos de fuentes propias es mayor en las comunidades consolidadas que en las no consolidadas. Estas pruebas apoyan la hipótesis inicial especificada en la “Nota concepto de consolidación de comunidades y formación de unidades intercomunitarias” adoptado por el gobierno de la RA, de que la consolidación de las comunidades dará lugar a una expansión de la capacidad de generación de ingresos de las comunidades recién formadas, que debe ser difundida por los responsables de la formulación de políticas en las comunidades no consolidadas, con el fin de apoyar un proceso de transición uniforme para el avance en la consolidación posterior a la Revolución de Terciopelo de 2018. 本稿では、2015年にアルメニア共和国(RA)で始まった地域社会統合プロセスのコンテキストにおける、RAにおける財政的分権化を検討する。統合プロセスによる、地域社会予算の独自の財源による歳入の変化の結論的解釈及び実証的解釈を提示し、β‐およびσ‐収束モデルを用いて、統合地域社会と非統合地域社会の予算の比較における独自の財源による歳入の重みの変化のペースと方向を評価した。2015~2018年までのRA501地域のデータを分析した結果、統合地域は非統合地域に比べて独自の財源による歳入の伸びが大きいことが明らかになった。このエビデンスは、RA政府によって採択された「Concept of community consolidation and formation of intercommunity units (地域社会の統合と地域社会単位の形成の構想)」に明記された最初の仮説を支持するものである。これは、地域社会の統合は、新たに形成されるコミュニティの歳入創出能力の拡大をもたらすものであり、2018年のVelvet Revolution (ビロード革命)の後に再開されるさらなる統合の移行プロセスを支援するために、非統合地域の政策立案者によって普及される必要がある。

Suggested Citation

  • Tsovinar J. Karapetyan & Arpenik Muradyan & Vanine A. Yeranosyan & Erik M. Grigoryan, 2021. "The structural changes in Armenian Community budgets within the process of community consolidation," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 559-572, June.
  • Handle: RePEc:bla:rgscpp:v:13:y:2021:i:3:p:559-572
    DOI: 10.1111/rsp3.12362
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    1. Vinko Muštra & Andrés Rodríguez‐Pose, 2021. "Challenges and policies for middle‐income trapped regions and cities," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 438-440, June.

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