cross-national data in the nonprofit sector

 cross-national data in the nonprofit sector

Main Purpose

The primary objective of the study was to collect, analyze, compare and interpret cross-national data in the nonprofit sector. The purpose is a consequence of the observation of limited studies conducted to compare international statistics to guide investment in the nonprofit sector. Therefore, the research applied national panel discussion techniques to obtain cross-national statistics in multibillion investments by various countries. Through the analysis, Kim and Kim (2018) targeted addressing the issue of calculated investment for maximum impact by multiple governments.

Key Questions

The critical note question in the article doubles up as its title: what accounts for the variations in nonprofit growth? The question guides the scope of the study and the methodology used in the research. Specifically, the methodology applied is such that at the end of the study, the main research question is answered satisfactorily. From the stem question, other questions such variations in the government expenditure arise. Similarly, the research addresses the subject of the use of scientific data in guiding government expenditure in the private sector. Provision of detailed answers to the raised questions enhances the credibility, reliability and generalizability of the research to various stakeholders of public administration and expenditure.

Important Information

The document supplies crucial information on the determinants of nonprofit growth and the associated variation. Firstly, the economic developments of a country directly influence the amount of money available for investment in the sector. Countries with weak economic growth have a lower capacity to invest in the nonprofit industry compared to those with a robust economy. Besides, the social environment of a state influences the priorities in public investments. In certain situations, it is advisable to invest in the private sector, which sustains the economy compared to the nonprofit areas. Therefore, there are significant variations across the globe in the expenditure of public coffers. Understanding the practical differences requires a theoretical approach and analysis of the social, political, geographical and economic parameters.

Key Concepts

The government failure theory and interdependence theory forms an intricate component of the article. The two approaches comprise of an examination of how governments relate with the nonprofit sector. Specifically, the government failure concept is a product of the classical economic theory. It focuses on the goods of public interests which must be provided by the government without incurring any profit. Such include roads, security and public goods. On the other hand, the interdependent hypothesis stipulates that the government and the nonprofit organizations are partners that must coexist amicably for the sustenance of economic growth. An understanding of this theoretical framework highlights essential concepts contributing to successful public administration.

Main Assumptions

The author highlights many assumptions used in generating the document. First, the report is based on the assumption that everyone in society applies the altruistic concern of giving selflessly for the development of the social welfare of the community. Specifically, the assumption helps in understanding the relationship between the household disposable per capita income and the social welfare advancements. Secondly, it is also assumed that an increase in the government size inversely relates to that of the nonprofit sector. Thirdly, the assumption of heterogeneity in the non-observable factors influencing income, social status and the overall advancement in the welfare of the community enhance the formation of the document. It is essential to emphasize the assumptions while applying the conclusions of the paper to the contemporary society.

Main Implications

The study has both theoretical and practical implication on the process of public administration. The combined analysis of the government failure an interdependence theories help in understanding variations and correlations in the nonprofit sector of the community. From the explanations in the document, it is possible to apply the two theories to make trajectories into the future performance of government infrastructure and respond appropriately. The calculated adjustments thus imply an increased propensity of venturing into valuable public goods and improved utilization of government funds. The finding that no theory can adequately explain the heterogeneous pattern of the growth in the nonprofit sector implies that the government needs to conduct excavation studies before investments. Each industry may show different responses to public funding.

Main Conclusions

The study shows that the economic growth of a country plays a crucial role in determining the extent of nonprofit investment and future growth. Accurately, the financial capabilities of a government directly determine the amount of money set aside for nonprofit growth. Besides, through the research paper, it is concluded that the theories within the public domain offer limited explanations to the dynamics of variation in nonprofit growth at an international front. The geographical, social, economic and political changes affect the immediate choices of government investment. The study also shows the relevance of the interplay among private philanthropy, government, and another nonprofit sector in contributing to the ultimate growth of the industry. It is crucial to consider all the theoretical concepts in conducting future studies issue of charitable increases.

The relevance of the Article to Public Management

Understanding the variations in public expenditure in various nations is crucial in the process of planning and implementation of government projects. Kim and Kim (2018) provide essential information on the factors which generate such differences across the globe. Therefore, the analysis of the variations across the world helps in cautioning government investors from replicating one system into a different part of the world. The influencers of economic development like the per capita income of a county must be analyzed independently before generalization international expenditures. Similarly, the same concept applies to the implementation of the proposal of international monetary bodies on the structural adjustments of the community. It is essential to understand the characteristics of an economy before incurring any global model of public spending.

Similarly, the research enhances the process of public spending through evidence-based models. Through the document, it is possible to analyze the infrastructural base of a country and select the areas which require immediate investment. Specifically, the government failure theory and interdependence theory help in understanding the current structure of the public administration systems and allotment of funds.  Through the theories, public administrators incur informed expenditures and avoid errors which may reduce the rate of growth of the nonprofit sectors.

In addition to the relevance indicated above, Kim and Kim (2018) identify a study gap in the field of public funds administration in the nonprofit sector. The document shows the limited scientific data available to verify the variations at the international front. Therefore, the study makes a prompt call for action through the invitation of researchers to conduct more studies in this area. Future research works in the same field is essential to validate the conclusions of Kim and Kim (2018). More work must be done to increase the scientific evidence supporting the expenditure in the nonprofit sector.

Contents of the Reading Applying to the Situation Described in the Article

The nonprofit sector consists of enablers of growth such as road, water and electricity. A robust transport system is required to facilitate the transport of merchandise and traders from one region to another. Failure to invest in the nonprofit sector thus significantly affects the rate of growth of the dependencies. However, it is crucial to understand that the level of economic growth and the amount of money in circulation in a government affects the available funds for public spending. Since there is a variation in the level of per capita income, and the gross domestic product across different countries, it is reasonable to observe variations in the rate of nonprofit growth at the international level.

The other significant factor in the research is the effect of inflation on the cost of living and public expenditure. Countries with substantial rates of inflation tend to develop monetary policies to reduce inflation by supporting the citizens in purchasing basic needs. In such moments of rising, the government may prefer to invest more in the profitable sector than the nonprofit materials. Therefore, it is essential to analyze issues of public expenditure in light of economic recession or inflation. Besides, the protectionist regulations guarding countries borders to exploitative international trade also contribute to government income. Such laws may reduce the total amount of money acquired from the foreign markets, thus declining the amounts of funds available for public expenditure on the nonprofit sector. Therefore, the document analyzed above is not only practical but also has several insights on issues learnt on the topic of public administration.