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Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development

Author

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  • Manuel Pedro Rodríguez Bolívar

    () (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

  • Andrés Navarro Galera

    () (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

  • Laura Alcaide Muñoz

    () (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

  • María Deseada López Subires

    () (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

Abstract

In many countries, the economic crisis brought high volumes of deficit and debt in public entities, which jeopardized the ability of governments to continue providing public services and caused considerable imbalances of economic growth in different regions. In this context, from the recognition of the linkage between economic development and efficiency in public management, previous research indicates that local governments are called to play a key role in promoting sustainable development through environment, economic and social policies based on financial sustainability of the public services. This paper aims to identify influencing factors on the financial sustainability of local governments, as an indicator of their capacity to maintain the delivery of public services over time. Based on a sample of 139 Spanish municipalities with large population for the period 2006–2014, our findings reveal the influence of variables such as the unemployment rate by sector, the dependent population, the immigrant population and the level of education of the population, on the financial sustainability in local governments, providing new useful knowledge to managers, policymakers, researchers and others stakeholders interested in the sustainability of public services.

Suggested Citation

  • Manuel Pedro Rodríguez Bolívar & Andrés Navarro Galera & Laura Alcaide Muñoz & María Deseada López Subires, 2016. "Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-18, September.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:9:p:925-:d:77960
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    References listed on IDEAS

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    Cited by:

    1. Andrés Navarro-Galera & Mercedes Ruiz-Lozano & Pilar Tirado-Valencia & Araceli de los Ríos-Berjillos, 2017. "Promoting Sustainability Transparency in European Local Governments: An Empirical Analysis Based on Administrative Cultures," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-20, March.
    2. Bethlendi, András & Lentner, Csaba, 2019. "A magyar önkormányzati eladósodás és válságkezelés nemzetközi összehasonlításban [The indebtedness and crisis management of Hungarian municipalities in an international context]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1013-1030.
    3. András Bethlendi & Csaba Lentner, 2018. "Subnational Fiscal Consolidation: The Hungarian Path from Crisis to Fiscal Sustainability in Light of International Experiences," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-16, August.

    More about this item

    Keywords

    economic growth; financial sustainability; sustainable development;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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