DETERMINANTS OF THE FINANCIAL STABILITY OF RURAL COMMUNES OF THE EASTERN POLAND MACROREGION IN THE OPINION OF LOCAL AUTHORITIES

Abstract

The aim of the study was to identify the determinants of financial stability of rural communes from the Eastern Poland macroregion. Particular attention was paid to the awareness of the impact of specific groups of factors on the financial stability of an entity and to the identification of the main economic, institutional, socio-demographic and spatial-environmental determinants of the financial stability of communes. To achieve the aim, the method of analysis and criticism of literature and the method of diagnostic survey using a survey questionnaire were used. The survey was conducted among representatives of the executive body (mayors) of rural communes from the Eastern Poland macroregion. The research covered 349 rural communes from five voivodeships located in the Eastern Poland macroregion. Based on the conducted research, it was found that in the opinion of local authorities, internal factors have a greater impact on the level of stability of their communes than external factors. The main determinants of the financial stability of rural communes in the Eastern Poland macroregion were indicated as: the structure of the local economy, the number of enterprises operating in the area of the studied commune, the division of public tasks and competences between various levels of public authority and the repartition of financial resources between the state and the commune. Moreover, the main factors influencing the financial stability of the analysed communes include migration and the age structure of the inhabitants of a given commune as well as the nature and location of the unit.

Keywords

• financial stability
• determinants of financial stability
• rural communes
• local government units
• Eastern Poland macroregion