Author(s): Aldona Standar
Title: Assessing the Scale of and Financial Reasons behind Differences in the Local Government Units’ Investment Expenditures in the Context of Reducing Disparities in Socio-Economic Development
Source: International Scientific Days 2018 :: Towards Productive, Sustainable and Resilient Global Agriculture and Food Systems :: Proceedings
ISBN: 978-80-7598-180-6
DOI: https://doi.org/10.15414/isd2018.s6.07
Publisher: Wolters Kluwer ČR, Prague
PY, pages: 2018, 1462-1475
Published on-line: 2018-11-09
Language: eng
Abstract: The main purpose of this paper is to assess the scale of and financial reasons behind
differences in the local government units’ investment expenditures in the context
of reducing disparities in socio-economic development. The study was conducted
in three parts. The first part consisted in presenting the development and structure
of investment expenditure. To do so, selected methods of descriptive statistics were
used. In the second part, a synthetic indicator of municipalities’ development was
developed. Also, an analysis of variance was performed to check whether the municipalities’
development level affects the investment level. In the third part, a multiple
regression model was created to explain the financial determinants of investment
levels. The analyses found that the levels of investment expenditure incurred by the
municipalities were subject to variations. The differences in the cumulated values of
investments proved to be statistically significant considering the development levels
of local government units under consideration. A directly proportional relationship
was discovered. The level of investment expenditure was positively impacted by the
municipality’s own potential expressed as the level of own incomes and the operating surplus. Conversely, financial liquidity and indebtedness were found to be significant factors with a negative effect.
Keywords: regression analysis, convergence, local government, investment expenditure, sources of investment
JEL Classification: H70, H71, H72
Rights:Open Access :: Creative Commons BY-NC-SA 4.0 International Licence
Toto dielo je publikované pod/This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence.
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