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Local Fiscal Capacity in the New Members of the European Union: Is It Efficient?

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  • Nikolay Patonov

    (South-West University “Neofit Rilski”, Bulgaria)

Abstract

Purpose – This paper aims to analyze the efficiency of the fiscal capacity of the local governments in the new members of the EU. Design/methodology/approach – The impact of the locally collected taxes on economic growth is analyzed by the means of regression analysis. The GDP growth rate is adopted as a dependent variable in the model and its deviations are explained via tax instruments for building fiscal capacity. Findings – Strong positive effects on economy, when property taxes come in local budgets. Research limitations/implications – There are many factors affecting the economic growth, which are not included in the regression model. The effects of the charges levied by local governments also remain without estimation. Originality/Value – The study fills in the gap of research on the benefits of local fiscal capacity in the countries of interest.

Suggested Citation

  • Nikolay Patonov, 2013. "Local Fiscal Capacity in the New Members of the European Union: Is It Efficient?," International Journal of Synergy and Research, ToKnowPress, vol. 2(1), pages 57-70.
    • Handle: RePEc:tkp:ijsrsy:v:2:y:2013:i:1:p:57-70
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    References listed on IDEAS

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