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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


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
Creative Commons License
Toto dielo je publikované pod/This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence.