Interlinkages between Government Resources Management

Environmental Support, and Good Public Governance

Advanced Insights from the European Union

Good governance requires efficiency and effectiveness in public sector management, a
sound legal framework, enhanced coordination, credibility, and transparency of the actions that
support financial stability. Connecting these actions, there are significant interlinkages between
government spending management and economic development. The research conducted within this
paper is set to assess the overall relationships within general government spending management, with
a keen focus on government support for environmental protection and good public governance at the
European Union (EU) level.

The study investigates the cumulative effects of good public governance
dimensions on economic welfare and poverty lessening. The dataset covers the period 1995–2017,
and the methodological credentials are based on the structural equation modelling technique. The
main results indicate that not only does government expenditure (including environmental support)
shape good public governance, but the enhancements in good governance dimensions also have
important spillovers on government spending regarding significant bidirectional connections. As
for the overall implications, the estimations show that only general government expenditure has
induced welfare increases, while environmental support does not generate the same positive effects.
Ultimately, the all-embracing impact of considered governance dimensions is beneficial, leading to a
downsizing of poverty within the EU.

Read the complete article: resources-10-00041