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Financial Situation of Local Government Units as a Determinant of the Standards of Living for the Polish Population

Author

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  • Mariusz Malinowski

    (Department of Economics, Faculty of Economics, Poznan University of Life Sciences, 60-639 Poznan, Poland)

Abstract

In this paper, the author intends to show the interaction between the living standards of the population and the financial situation of Polish local government units at the commune level. The first (theoretical) part of the paper provides a synthetic description of topics related to defining the economic terms and to the local government’s ability to impact the standards of living of the local population. In view of the multifaceted nature of terms covered by this analysis, the second part uses a canonical analysis (which means multiple linear regressions are generalized for two sets of variables) in order to identify the relationships between them. The analysis resulted in identifying a number of indicators, including canonical correlations, total redundancy and variances extracted, as well as six statistically significant canonical variates, which enabled the identification of multidimensional relationships between the categories considered. The greatest and the most statistically significant canonical correlation coefficient was over 0.93; for the last statistically significant canonical variate, it was over 0.57. The analysis provides grounds for concluding that when the values of variables representing the financial capacity of Polish rural communes are known, they can be used to explain over 32% of the variance in the set of variables relating to the population’s standards of living. The statistical data originated from the author’s own surveys carried out with presidents and vice-presidents of commune councils.

Suggested Citation

  • Mariusz Malinowski, 2022. "Financial Situation of Local Government Units as a Determinant of the Standards of Living for the Polish Population," Energies, MDPI, vol. 15(15), pages 1-24, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:15:p:5448-:d:873467
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    References listed on IDEAS

    as
    1. Mariusz Malinowski & Joanna Smoluk-Sikorska, 2020. "Spatial Relations between the Standards of Living and the Financial Capacity of Polish District-Level Local Government," Sustainability, MDPI, vol. 12(5), pages 1-27, February.
    2. Melissa G Naylor & Xihong Lin & Scott T Weiss & Benjamin A Raby & Christoph Lange, 2010. "Using Canonical Correlation Analysis to Discover Genetic Regulatory Variants," PLOS ONE, Public Library of Science, vol. 5(5), pages 1-6, May.
    3. Abraham Carmeli, 2007. "The Effect of Fiscal Conditions of Local Government Authorities on Their Economic Development," Economic Development Quarterly, , vol. 21(1), pages 91-98, February.
    4. Cajo Braak, 1990. "Interpreting canonical correlation analysis through biplots of structure correlations and weights," Psychometrika, Springer;The Psychometric Society, vol. 55(3), pages 519-531, September.
    5. Vicente Pina & Patricia Bachiller & Lara Ripoll, 2020. "Testing the Reliability of Financial Sustainability. The Case of Spanish Local Governments," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    6. Mirosław Krzyśko & Wojciech Łukaszonek & Waldemar Wołyński, 2018. "Canonical Correlation Analysis In The Case Of Multivariate Repeated Measures Data," Statistics in Transition New Series, Polish Statistical Association, vol. 19(1), pages 75-85, March.
    7. Ana Cárcaba & Eduardo González & Juan Ventura & Rubén Arrondo, 2017. "How Does Good Governance Relate to Quality of Life?," Sustainability, MDPI, vol. 9(4), pages 1-16, April.
    8. Beatriz Cuadrado-Ballesteros & Noemí Mordán & Isabel-María García-Sánchez, 2014. "Is Local Financial Health Associated with Citizens’ Quality of Life?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 559-580, November.
    9. Bieniasz, Anna & Gołaś, Zbigniew & Łuczak, Aleksandra, 2014. "Wielowymiarowa Analiza Kondycji Finansowej Gmin Wiejskich W Polsce W Latach 2007–2011," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 2(163).
    10. Standar, Aldona, 2017. "Ocena kondycji finansowej gmin oraz jej wybranych uwarunkowań na przykładzie województwa wielkopolskiego przy wykorzystaniu metody TOPSIS," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 2(175).
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