Assessing Municipal Performance in Serbia: A TOPSIS-Based Analysis of Economic Vitality and Public Safety Dynamics

This study applies the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method combined with entropy-based weighting to systematically rank Serbian municipalities regarding economic vitality, infrastructure quality, and socio-economic stability. By developing a composite municipal performance index, the research explores the extent to which stronger economic standings relate to public safety outcomes. Infrastructure factors—including road conditions, housing quality, and water supply—are assessed through correlation and t -tests to evaluate their influence on municipal economic rankings. An ordinary least squares (OLS) regression model also examines how education and health expenditures per capita contribute to broader socio-economic resilience. The findings reveal a moderately strong, though nonlinear, negative relationship between economic performance and crime rates, with road infrastructure emerging as a consistently significant driver of economic strength. Investments in education and health initially correlate with greater municipal stability but show signs of diminishing marginal impact over time. These insights contribute to understanding the complex interplay between governance, infrastructure, and safety in transitional economies, highlighting the value of integrated data-driven approaches for regional development planning.