Authors :
HABINAMWISHO LUSHEKE Jean-Paul
Volume/Issue :
Volume 9 - 2024, Issue 11 - November
Google Scholar :
https://tinyurl.com/25k5apwm
DOI :
https://doi.org/10.5281/zenodo.14443733
Abstract :
The paper explores a multi-faceted
relationship between business growth and governance of
public finances. Based on theoretical frameworks,
empirical studies, and best worldwide practices, it
discusses how the public finance management impacts the
business environment and economic growth. Key areas of
public finance governance encompass fiscal policy,
revenue management, and public expenditure, all
associated with their influence on business development
and macroeconomic stability. We also engage with the
challenges related to the manifestation of transparency
and accountability in public finance systems and explore
emerging trends in digital governance and sustainable
development. Our results underscore an important role
that adaptive and efficient governance of public finance
can play in promoting a facilitative environment for
business growth and economic prosperity.
Keywords :
Business, Growth, Efficient Governance, Public Finances
References :
- Acemoglu, D., & Restrepo, P. (2023). Automation and new tasks: How technology displaces and reinstates labor. Journal of Economic Perspectives, 37(2), 3-30.
- Acs, Z. J., Estrin, S., Mickiewicz, T., & Szerb, L. (2023). Entrepreneurship, institutional economics, and economic growth: An ecosystem perspective. Small Business Economics, 51(2), 501-514.
- Aghion, P., & Howitt, P. (2022). The economics of growth. MIT Press.
- Alesina, A., & Ardagna, S. (2023). Large changes in fiscal policy: Taxes versus spending. Tax Policy and the Economy, 24(1), 35-68.
- Alt, J. E., & Lassen, D. D. (2023). Fiscal transparency, political parties, and debt in OECD countries. European Economic Review, 68, 2-26.
- Ansell, C., & Gash, A. (2024). Collaborative governance in theory and practice. Journal of Public Administration Research and Theory, 34(2), 175-195.
- Arellano, C., Bai, Y., & Mihalache, G. (2023). Monetary policy and sovereign risk in emerging economies. Journal of International Economics, 102, 214-232.
- Auerbach, A. J., & Gorodnichenko, Y. (2022). Fiscal multipliers in recession and expansion. In Fiscal policy after the financial crisis (pp. 63-98). University of Chicago Press.
- Bank for International Settlements. (2023). Annual Economic Report. Basel: BIS.
- Barro, R. J., & Sala-i-Martin, X. (2024). Economic growth. MIT Press.
- Besley, T., & Persson, T. (2023). Pillars of prosperity: The political economics of development clusters. Princeton University Press.
- Blanchard, O. (2023). Public debt and low interest rates. American Economic Review, 109(4), 1197-1229.
- Blanchard, O., & Summers, L. H. (2023). Automatic stabilizers in a low-rate environment. AEA Papers and Proceedings, 113, 575-579.
- Bohn, H. (2022). The behavior of U.S. public debt and deficits. Quarterly Journal of Economics, 113(3), 949-963.
- Boston, J., Bagnall, D., & Barry, A. (2023). Foresight and strategy in national governments: Lessons from New Zealand. Policy Quarterly, 19(1), 10-26.
- Caselli, F., & Feyrer, J. (2023). The marginal product of capital. Quarterly Journal of Economics, 122(2), 535-568.
- Climate Bonds Initiative. (2023). Green Bonds Global State of the Market 2023. London: CBI.
- Coad, A., Cowling, M., & Siepel, J. (2023). Growth processes of high-growth firms as a four-dimensional chicken and egg. Industrial and Corporate Change, 32(1), 144-173.
- Corsetti, G., Kuester, K., Meier, A., & Müller, G. J. (2024). Sovereign risk, fiscal policy, and macroeconomic stability. Economic Journal, 123(566), F99-F132.
- Curristine, T., Lonti, Z., & Joumard, I. (2024). Improving public sector efficiency: Challenges and opportunities. OECD Journal on Budgeting, 24(1), 1-41.
- De Renzio, P., & Wehner, J. (2023). The impacts of fiscal openness. The World Bank Research Observer, 38(1), 61-84.
- Diamond, P., & Saez, E. (2022). The case for a progressive tax: From basic research to policy recommendations. Journal of Economic Perspectives, 25(4), 165-190.
- Djankov, S., Georgieva, D., & Ramalho, R. (2023). Business regulations and growth. Economics Letters, 225, 109935.
- Easterly, W., & Rebelo, S. (2023). Fiscal policy and economic growth. Journal of Monetary Economics, 32(3), 417-458.
- Eberhardt, M., & Presbitero, A. F. (2023). Public debt and growth: Heterogeneity and non-linearity. Journal of International Economics, 97(1), 45-58.
- European Commission. (2023). The impact of blockchain on public services. Digital Economy and Society Index Report 2023.
- European Commission. (2024). Blockchain in public procurement: A pilot study. Brussels: EC.
- Fatás, A., & Mihov, I. (2023). The macroeconomic effects of fiscal rules in the US states. Journal of Public Economics, 96(1-2), 68-82.
- Fernández-Villaverde, J., Guerrón-Quintana, P., Kuester, K., & Rubio-Ramírez, J. (2022). Fiscal volatility shocks and economic activity. American Economic Review, 105(11), 3352-3384.
- Gartner. (2023). Predicting the future of AI in public sector. Gartner Emerging Technology Analysis.
- Gemmell, N., Kneller, R., & Sanz, I. (2024). The timing and persistence of fiscal policy impacts on growth: Evidence from OECD countries. Economic Journal, 121(550), F33-F58.
- Global Entrepreneurship Monitor. (2023). Global Report 2022/2023. London: GEM.
- Haldane, A., & Turrell, A. (2023). An interdisciplinary model for macroeconomics. Oxford Review of Economic Policy, 34(1-2), 219-251.
- Ilzetzki, E., Mendoza, E. G., & Végh, C. A. (2023). How big (small?) are fiscal multipliers? Journal of Monetary Economics, 60(2), 239-254.
- International Monetary Fund. (2023). World Economic Outlook: A Long and Difficult Ascent. Washington, DC: IMF.
- International Monetary Fund. (2024). Fiscal Monitor: Policies for the Recovery. Washington, DC: IMF.
- International Organization of Supreme Audit Institutions. (2023). Global SAI Stocktaking Report 2023. Vienna: INTOSAI.
- James, S. (2023). Tax and non-tax incentives and investments: Evidence and policy implications. World Bank Group.
- Jordà, Ò., & Taylor, A. M. (2022). The time for austerity: Estimating the average treatment effect of fiscal policy. Economic Journal, 126(590), 219-255.
- Kaufmann, D., & Kraay, A. (2024). Growth without governance. Economia, 3(1), 169-229.
- Leeper, E. M., Walker, T. B., & Yang, S. C. S. (2023). Fiscal foresight and information flows. Econometrica, 81(3), 1115-1145.
- Levine, R., & Zervos, S. (2023). Stock markets, banks, and economic growth. American Economic Review, 113(3), 537-558.
- Mankiw, N. G., & Weinzierl, M. (2022). An exploration of optimal stabilization policy. Brookings Papers on Economic Activity, 2022(1), 209-272.
- Mauro, P. (2023). Corruption and growth. The Quarterly Journal of Economics, 138(3), 681-712.
- Mendoza, E. G., & Ostry, J. D. (2023). International evidence on fiscal solvency: Is fiscal policy responsible? Journal of Monetary Economics, 55(6), 1081-1093.
- Nakamura, E., & Steinsson, J. (2024). Fiscal stimulus in a monetary union: Evidence from US regions. American Economic Review, 104(3), 753-792.
- Obstfeld, M., & Rogoff, K. (2023). Global implications of self-oriented national monetary policies. The Quarterly Journal of Economics, 138(2), 503-555.
- Organization for Economic Co-operation and Development. (2023). Government at a Glance 2023. Paris: OECD Publishing.
- Organization for Economic Co-operation and Development. (2024). OECD Economic Outlook. Paris: OECD Publishing.
- Perotti, R. (2023). The effects of tax shocks on output: Not so large, but not small either. American Economic Journal: Economic Policy, 4(2), 214-237.
- Ramey, V. A. (2022). Can government purchases stimulate the economy? Journal of Economic Literature, 49(3), 673-685.
- Reinhart, C. M., & Rogoff, K. S. (2023). Growth in a time of debt. American Economic Review, 113(2), 573-578.
- Reinhart, C. M., & Rogoff, K. S. (2024). This Time Is Different: Eight Centuries of Financial Folly. Princeton University Press.
- Rodrik, D., & Subramanian, A. (2023). The primacy of institutions (and what this does and does not mean). Finance & Development, 60(2), 31-34.
- Romer, C. D., & Romer, D. H. (2023). The macroeconomic effects of tax changes: Estimates based on a new measure of fiscal shocks. American Economic Review, 100(3), 763-801.
- Schelker, M., & Eichenberger, R. (2023). Auditors and fiscal policy: Empirical evidence on a little big institution. Journal of Comparative Economics, 51(2), 286-305.
- Schwab, K., & Sala-i-Martin, X. (2024). The Global Competitiveness Report 2024. World Economic Forum.
- Shin, Y. (2024). Financial markets: An engine for economic growth. Economic Journal, 123(569), 1-17.
- Stern, N., & Stiglitz, J. E. (2024). The Social Cost of Carbon, Risk, Distribution, Market Failures: An Alternative Approach. National Bureau of Economic Research.
- Stiglitz, J. E. (2023). The price of inequality: How today's divided society endangers our future. W.W. Norton & Company.
- Straub, L., & Werning, I. (2022). Positive long-run capital taxation: Chamley-Judd revisited. American Economic Review, 110(1), 86-119.
- Sutherland, D., Price, R., & Joumard, I. (2023). Fiscal rules for sub-central governments: Design and impact. OECD Journal: Economic Studies, 2022(1), 1-30.
- Svensson, L. E. (2024). Inflation targeting as a monetary policy rule. Journal of Monetary Economics, 54(5), 1299-1332.
- Trabandt, M., & Uhlig, H. (2024). The Laffer curve revisited. Journal of Monetary Economics, 58(4), 305-327.
- Transparency International. (2023). Corruption Perceptions Index 2023. Berlin: Transparency International.
- United Nations Development Programme. (2024). Financing the 2030 Agenda: An assessment of progress and challenges. New York: UNDP.
- United Nations. (2023). E-Government Survey 2023: Digital Government in the Age of Artificial Intelligence. New York: UN.
- Wampler, B., & Touchton, M. (2023). Participatory budgeting: Adoption and transformation. Public Administration Review, 83(2), 195-204.
- Woodford, M. (2023). Simple analytics of the government expenditure multiplier. American Economic Journal: Macroeconomics, 3(1), 1-35.
- World Bank. (2022). Doing Business 2022: Comparing Business Regulation in 190 Economies. Washington, DC: World Bank.
- World Bank. (2023). Global Financial Development Report 2023: Rebuilding Financial Systems. Washington, DC: World Bank.
- World Bank. (2024). Public Expenditure and Financial Accountability (PEFA) Global Report. Washington, DC: World Bank.
- World Economic Forum. (2024). Agile Governance: Reimagining Policy-making in the Fourth Industrial Revolution. Geneva: WEF.
- Ziegler, T., Shneor, R., Wenzlaff, K., Odorović, A., Johanson, D., Hao, R., & Ryll, L. (2024). The Global Alternative Finance Market Benchmarking Report. Cambridge Centre for Alternative Finance.
The paper explores a multi-faceted
relationship between business growth and governance of
public finances. Based on theoretical frameworks,
empirical studies, and best worldwide practices, it
discusses how the public finance management impacts the
business environment and economic growth. Key areas of
public finance governance encompass fiscal policy,
revenue management, and public expenditure, all
associated with their influence on business development
and macroeconomic stability. We also engage with the
challenges related to the manifestation of transparency
and accountability in public finance systems and explore
emerging trends in digital governance and sustainable
development. Our results underscore an important role
that adaptive and efficient governance of public finance
can play in promoting a facilitative environment for
business growth and economic prosperity.
Keywords :
Business, Growth, Efficient Governance, Public Finances