The Impact of the Quality of Public Spending and Institutional Change on the Use of Oil Royalties: Exploring Public Management Research

Abstract

The aim of the paper is to analyze the impacts of the quality of public spending and institutional change on the use of oil royalties. The related research is based on the (re)definition of concepts that are crucial for scholars in public administration. The debate on their utilization involves social and environmental issues, not limited to economic growth. Given the current economic crises faced by governments, there is a more significant limitation on public resources available by local governments. Therefore, one should not ignore the window of opportunity that has opened to give due attention to the quality of public spending. The research has also adopted the New Institutionalism theory that has as a premise that the institutions exert influence on the behavior of actors and on the political decisions. As a result, it is concluded that there is path dependence. The arguments of path dependence and increasing returns are used to explain the continuities. In the institutional analysis, the concept of path dependence helps to understand the possible behavior of economic agents. Thus, in this context, the economy does not represent an increase in the population’s quality of life, and it is necessary to build a work methodology that involves the knowledge of local needs.