Description
Title: Assessment of Rural Municipalities’ Financial Autonomy
Abstract: The current study demonstrates the TOPSIS method’s potential for evaluating the financial independence of rural municipalities. The goal of the study was to develop and empirically test the model for evaluating the financial independence of rural municipalities. An integrated system for evaluating the financial independence of rural municipalities was developed as a result of the empirical study. The evaluation of the financial independence of rural municipalities conducted for two regions of Lithuania between 2009 and 2019 shows the applicability of the TOPSIS method. The empirical study revealed that all of the rural municipalities in the chosen regions had a medium-low level of financial autonomy. On the one hand, the results suggested that rural municipalities had a “convenient dependence” on the centralized allocation. On the other hand, they indicated that rural municipalities lacked incentives to utilize their resources and forge sustainable, stable economic and social prospects.
Keywords: financial autonomy; TOPSIS method; rural municipalities
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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