What determines fiscal success at local level? The case of Croatian local government units
The paper investigates the relationship between Croatian local government budget outturns (i.e., fiscal success) and a chosen set of economic and non-economic determinants. The determinants are divided into four groups: (i) economic, (ii) political, (iii) transparency and (iv) socio-historical. Three main goals are set in the paper. The first is to determine whether there are differences in fiscal success at the different levels of administrative governance (counties, cities and municipalities) in Croatia. Subsequently, the second goal is determining whether such differences are of an economic or non-economic origin and third, whether such differences are robust, meaning do they persist at all three administrative levels. If the differences are not persistent, the question remains as towards what determinants (economic or non-economic) do they diverge. The analysis is conducted on the entire population, i.e. 428 municipalities, 128 cities and 20 counties for the period 2012–2014. Panel data and regression analysis are applied to study the differences and signs of independent variables. The obtained results indicate that differences between local government units in Croatia stem are of an economic and political origin.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).