Socioeconomic Determinants of Local Fiscal Success – The Case of Montenegrin Municipalities

Author:

Šehović Damir,Konatar MilenaORCID,Cerović Smolović Julija,Đurašković Jovan

Abstract

The aim of this paper is to determine the direction and scope of the impact of socio-economic determinants on the fiscal success of Montenegrin municipalities. The research model is conducted in a panel data framework, using traditional methods. The study covers  the period 2009-2018. The model considers the correlation of fiscal success in 23 Montenegrin municipalities (from the Northern, Central and Southern regions) with social (number of citizens or population, number of pensioners) and economic (unemployment, taxes, grants, level of public debt) determinants. According to the results of the analysis, almost all determinants have a significant impact on fiscal success. Tax revenues, as a measure of fiscal decentralization, have a statistically significant positive impact on fiscal success, while the unemployment rate, the number of citizens and the number of retired persons have demonstrated a negative impact.

Publisher

Institut Za Lokalno Samoupravo in Javna Narocila Maribor

Subject

Law,Public Administration,General Medicine

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