Author(s): Romana Głowicka-Wołoszyn, Łukasz Satoła
Title: Financial Self-Sufficiency of Rural Communes in Poland
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.s6.09
Publisher: Wolters Kluwer ČR, Prague
PY, pages: 2018, 1486-1499
Published on-line: 2018-11-09
Language: eng
Abstract: The main objective of the study was a synthetic evaluation of financial self-sufficiency
of Polish rural communes in 2016 based on partial indicators of the communes’
financial self-sufficiency published by the Ministry of Finance and the Central Statistical
Office. The communes were first classified according to a constructed synthetic
index of financial self-sufficiency. Then, internal determinants of the classes
were identified that embraced demographic, social, economic and infrastructural
factors. The construction of the index employed TOPSIS method with a correction
of ideal values, calculated advisedly without accounting for outliers. Among the four
identified classes, class I of high financial self-sufficiency encompassed 17% of rural
communes in Poland, while class IV of low financial self-sufficiency 15%. The former
exhibited much higher own income potential than the latter, having 2.5 times larger
own revenues per capita or shares of own in total revenues. Characteristically, in
class I communes the agricultural and forestry taxes constituted much smaller part
of the budget than in class IV – a direct consequence of twice as smaller employment
on individual farmsteads. Furthermore, entrepreneurship and demographic
indicators were much higher in class I, which attested to the progressive decline of
agricultural functions in favor of multifunctional development of those communes.
Keywords: financial self-sufficiency, rural communes, TOPSIS method
JEL Classification: C38, H71, H72
Rights:Open Access :: Creative Commons BY-NC-SA 4.0 International Licence
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