Determinants of Local Revenue Mobilisation: Do Governmental Transfers and Public Investment Matter? A Case of the Western Balkan Countries

• Authors: Vesna Garvanlieva Andonova , Borce Trenovski

Abstracts

EN

Local governments in the Western Balkan countries are dependent on central governments’ transfers, with low fiscal autonomy and limited efforts for own-source revenue mobilisation. The paper identifies that besides central government transfers, other significant factors in determining municipal own-source revenues include central and local public investment, current expenditures, human development index, and population density. Municipal own-source revenue is adversely affected by intergovernmental transfers, implying their de-incentivising effect in collecting local revenues. Local capital expenditure is a significant and strong determinant with a higher strength than central government investments, suggesting their importance for local fiscal autonomy. The human development index as a composite measure, unlike GDP per capita, positively affects the municipal fiscal autonomy.

Keywords

EN

local public investment; municipal own-source revenues; intergovernmental transfers; local governance; local expenditure structure

• Publisher: Uniwersytet Warszawski. Instytut Ameryk i Europy. Centrum Europejskich Studiów Regionalnych i Lokalnych (EUROREG)
• Journal: Studia Regionalne i Lokalne
• Year: 2023
• Volume: 93
• Issue: 3
• Pages: 7-19

Dates

published

2023

Contributors

author

Vesna Garvanlieva Andonova

• Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje
• Center for Economic Analyses CEA, Skopje

• https://orcid.org/0000000207351781

author

Borce Trenovski

• Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje

• https://orcid.org/0000000236309486

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Identifiers

DOI

10.7366/1509499539301

Biblioteka Nauki

24473228