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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


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