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Determinants Of Voluntary Online Local Budget Transparency: A Case Study From Croatia

Author

Listed:
  • Katarina Ott

    (Institute of Public Finance, Zagreb)

  • Velibor Mačkić

    (Faculty of Economics & Business, University of Zagreb)

  • Mihaela Bronić

    (Institute of Public Finance, Zagreb)

  • Branko Stanić

    (Institute of Public Finance, Zagreb)

Abstract

This article analyses the determinants of the voluntary online local budget transparency (OLBT) of Croatian local governments. Budget transparency is one of preconditions for enabling citizens’ participation and improving public sector outcomes; however, the previous empirical results are ambiguous and inconclusive, with particular gaps for ex-socialist, fiscally centralized countries. To contribute to the existing literature, this article uses the principal-agent and legitimacy theories and non-linear panel data models for the 2015-2017 period to analyse 128 cities and 428 municipalities in Croatia. The findings show that local governments with higher residents’ per capita income, population, Internet access, and administrative and fi scal capacity voluntarily publish more budget documents online. Policy recommendations point to the urge for the reform of the country’s territorial and fi scal organisation, the promotion of budget transparency in less developed cities/ municipalities and for education of citizens about budgets. The main study limitation is the absence of a qualitative analysis of observed documents.

Suggested Citation

  • Katarina Ott & Velibor Mačkić & Mihaela Bronić & Branko Stanić, 2019. "Determinants Of Voluntary Online Local Budget Transparency: A Case Study From Croatia," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 70(2), pages 145-172.
  • Handle: RePEc:hde:epregl:v:70:y:2019:i:2:p:145-172
    DOI: 10.32910/ep.70.2.1
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    Citations

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    Cited by:

    1. Katarina Ott & Velibor Maèkiæ & Mihaela Broniæ, 2019. "Political Stubbornness and Online Local Budget Transparency in Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 553-585.
    2. Blagica Petreski & Despina Tumanoska & Tereza KÐ¾Ñ ovska, 2020. "Town Hall Meetings: A tool for citizens’ engagement in the process of participatory budgeting," Finance Think Policy Studies 2020-06/28, Finance Think - Economic Research and Policy Institute.

    More about this item

    Keywords

    budget transparency; panel data; probit; Croatia; local government; political economy;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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