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The Financial State of Local Communities: A Comparative Research of Ukraine and the Czech Republic

Author

Listed:
  • Kozlov Dmytro

    (Sumy State University, Sumy, Ukraine)

  • Derev’yanko Yuriy

    (Sumy State University, Sumy, Ukraine)

  • Piven Vladyslav

    (Sumy State University, Sumy, Ukraine)

  • Melnyk Leonid

    (Sumy State University, Sumy, Ukraine)

  • Kubatko Oleksandr

    (Sumy State University, Sumy, Ukraine)

Abstract

The article describes the specific details of local communities functioning in Ukraine and the Czech Republic. It has been examined that Ukraine and the Czech Republic have similar, but not identical systems of local governance. We conducted a comparative analysis of the financial state of local communities in both countries by five indicators. Indicator 1 (total income per capita) characterises the community’s financial potential and reveals that Ukraine’s local communities have fewer financial resources to use. Indicator 2 (total expenditures per capita) describes the ability to provide residents with the resources generated in their community and Czech communities have a higher value of this indicator. Indicator 3 (share of the administrative expenditures) shows the effectiveness of money spent, and local communities in both Ukraine and the Czech Republic spend particularly the same part of their total expenditures on administrative needs. Indicator 4 (capital expenditures per capita) demonstrate how the money generated is spent on urgent capital investments and Ukraine’s communities have much lower capital expenditures per capita than Czech ones. Indicator 5 (the share of capital expenditures in total expenditures) reflects how local communities perceive the importance of investments in capital projects and Ukraine’s communities spend fewer financial resources for capital needs than Czech ones.

Suggested Citation

  • Kozlov Dmytro & Derev’yanko Yuriy & Piven Vladyslav & Melnyk Leonid & Kubatko Oleksandr, 2021. "The Financial State of Local Communities: A Comparative Research of Ukraine and the Czech Republic," Economics and Business, Sciendo, vol. 35(1), pages 165-173, January.
    • Handle: RePEc:vrs:ecobus:v:35:y:2021:i:1:p:165-173:n:10
    DOI: 10.2478/eb-2021-0011
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    References listed on IDEAS

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    1. Antonio N. Bojanic, 2013. "The composition of government expenditures and economic growth in Bolivia," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 50(1), pages 83-105, May.
    2. Faguet, Jean-Paul & Poschl, Caroline (ed.), 2015. "Is Decentralization Good For Development?: Perspectives from Academics and Policy Makers," OUP Catalogue, Oxford University Press, number 9780198737506.
    3. Nataliia Ivanchuk & Yulia Kharchuk, 2017. "Administrative Expenditures Of Social Security Funds In Ukraine," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 3(5).
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    More about this item

    Keywords

    Community; Development; Financial state; Indicator;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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