Spatial Relations between the Standards of Living and the Financial Capacity of Polish District-Level Local Government

Abstract

The objective of the presented article is the identification of spatial relations between the inhabitants’ standards of living and the districts’ financial capacity basing on data for 2017. The investigation comprised all of the 380 Polish districts. In regard to the multidimensionality of economic occurrences analyzed, the TOPSIS (The Technique for Order of Preference by Similarity to Ideal Solution) approach to measure the inhabitants’ standards of living and the financial ability of districts was applied in the research. A spatial autocorrelation analysis between the taxonomic (synthetic) indexes was performed using local and global Moran’s I statistics in order to determine the districts’ clusters, demonstrating a comparable degree of occurrences analyzed. A spatial regression analysis was conducted to find the strength of spatial relations between the taxonomic index of the standards of living and the districts’ financial ability. Diagnostic variables were chosen according to substantive, statistical and formal criteria. The outcomes of the spatial regression analysis allowed it to be concluded that about 1% increase of the taxonomic indicator of the districts’ financial ability is reflected in about 0.4% growth of the taxonomic index of the standards of living of the inhabitants of different districts (other things being equal). The results of analyses can be applied indirectly by a number of stakeholders, e.g., local authorities responsible for local and regional development, when creating the development strategies at local government unit (LGU) level. The knowledge on spatial development structures can enhance the formation of the strategic management process (for instance, redefining the objectives and tasks set out in local strategies; restructuring the expenditure to meet the local population’s needs).