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Financial assumptions of Slovak municipalities for their active participation in regional development

Author

Listed:
  • Katarína Liptáková

    (Matej Bel University in Banská Bystrica, Slovakia)

  • Zuzana Rigová

    (Matej Bel University in Banská Bystrica, Slovakia)

Abstract

Local self-government, represented by municipalities, is not only obliged to ensure all competencies set by legislation, whether original or transferred, but also to play an increasingly important role in the economic development of entrusted territory. One of a key challenge of the municipalities is also to act as an activator of development, either independently by using their own financial resources or in cooperation with potential investors who want to start new, whether social or economic activities in the respective area. Based on the published studies, the authors looked for suitable indicators to evaluate the financial conditions of Slovak municipalities to participate actively in the regional development of a particular region. They evaluated financial data of municipalities not only from the perspective of eight Slovak regions, but also in terms of size categories of municipalities, since they want to find out, how individual size categories of municipalities contribute to the healthy and viable financial condition of considered regions. In terms of analysis, a high degree of territorial fragmentation can be observed in Slovakia, which in the case of small size categories of municipalities (up to 3,000 inhabitants) negatively affects their ability to participate in regional development, because they have worse financial and property conditions. The athours ealuate quantitative financial and demographic data on Slovak municipalities for the period between 2014 and 2018, which they obtained from the Slovak DataCentrum and Ineko websites.

Suggested Citation

  • Katarína Liptáková & Zuzana Rigová, 2021. "Financial assumptions of Slovak municipalities for their active participation in regional development," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 312-330, June.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:4:p:312-330
    DOI: 10.9770/jesi.2021.8.4(18)
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    References listed on IDEAS

    as
    1. Baskaran, Thushyanthan, 2013. "Identifying local tax mimicking: Administrative borders and a policy reform," University of Göttingen Working Papers in Economics 157, University of Goettingen, Department of Economics.
    2. Sylvia Jenèová & Eva Litavcová & Róbert Štefko & Daniela Ma ovèíková, 2013. "The Impact Of The Economic Crises On Financing Of Municipalities In Slovakia," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 7(1), pages 167-178, June.
    3. Oto Hudec & Natasa Urbancikova, 2004. "Strategic Planning and Public Opinion Survey," ERSA conference papers ersa04p632, European Regional Science Association.
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    More about this item

    Keywords

    municipality; regional development; financial conditions; indicators of financial creditworthiness;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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