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Assessment of the Financial Autonomy of Rural Municipalities

Author

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  • Astrida Miceikienė

    (Faculty of Bioeconomy Development, Vytautas Magnus University, K. Donelaičio str. 58, LT-44248 Kaunas, Lithuania)

  • Laima Skauronė

    (Faculty of Bioeconomy Development, Vytautas Magnus University, K. Donelaičio str. 58, LT-44248 Kaunas, Lithuania)

  • Ričardas Krikštolaitis

    (Faculty of Informatics, Vytautas Magnus University, K. Donelaičio str. 58, LT-44248 Kaunas, Lithuania)

Abstract

The present study demonstrates the possibilities for assessment of the financial autonomy of rural municipalities using the TOPSIS method. The study aimed to design and empirically verify the model for assessment of the financial autonomy of rural municipalities. As a result of the empirical study, an integrated system for assessment of the financial autonomy of rural municipalities was designed. The applicability of the TOPSIS method is demonstrated by the assessment of the financial autonomy of rural municipalities performed for two regions of Lithuania in the period 2009–2019. The empirical study showed that medium-low level of financial autonomy was characteristic of all the rural municipalities in the selected regions. On one hand, the findings suggested the presence of “convenient dependence” of the rural municipalities on the centralised allocation. On the other hand, they signalled the lack of the incentives for the rural municipalities to make use of the capacities and create sustainable, stable economic and social prospects.

Suggested Citation

  • Astrida Miceikienė & Laima Skauronė & Ričardas Krikštolaitis, 2021. "Assessment of the Financial Autonomy of Rural Municipalities," Economies, MDPI, vol. 9(3), pages 1-21, July.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:3:p:105-:d:595892
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    References listed on IDEAS

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    1. Agnieszka Kozera & Romana Głowicka-Wołoszyn, 2016. "Spatial Autocorrelation In Assessment Of Financial Self-Sufficiency Of Communes Of Wielkopolska Province," Statistics in Transition New Series, Polish Statistical Association, vol. 17(3), pages 525-540, September.
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    3. Agnieszka Kozera & Romana Głowicka-Wołoszyn, 2016. "Spatial Autocorrelation in Assessment of Financial Self-Sufficiency of Communes of Wielkopolska Province," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 17(3), pages 525-540, September.
    4. Elena CIGU, 2014. "An Aproach Of Local Financial Autonomy And Implication Over Sustainable Development In The Knowledge Society," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 6(6), pages 44-53, December.
    5. Philip Kostov & John Lingard, 2004. "Integrated rural development - do we need a new approach?," Others 0409006, University Library of Munich, Germany.
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    Cited by:

    1. Zhao-Jun Wu & Da-Fang Wu & Meng-Jue Zhu & Pei-Fang Ma & Zhao-Cheng Li & Yi-Xuan Liang, 2023. "Regional Differences in the Quality of Rural Development in Guangdong Province and Influencing Factors," Sustainability, MDPI, vol. 15(3), pages 1-17, January.

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