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FINANCIAL AUTONOMY OF MUNICIPALITIES IN RELATION TO ECONOMIC PERFORMANCE IN REGIONS OF THE SLOVAK REPUBLIC
Abstract
The aim of this paper was to assess and compare the evolution of two indicators of financial autonomy, to measure regional disparities in financial autonomy and GDP per capita and then investigate the existence of the relation between the financial autonomy of municipalities and the GDP per capita of NUTS 3 regions in Slovakia in the time periods 2005-2008 and 2009-2011, it is before and after the outbreak of the economic crisis. Regional disparities in financial autonomy as well as in GDP per capita were growing after the outbreak of the economic crisis. Between financial autonomy and GDP per capita there is a strong direct linear relationship which was strengthened in second investigated time period. Growth in the level of GDP per capita positively influences the level of financial autonomy of municipalities in the NUTS 3 regions in Slovakia. Partial results of the analysis indicated the need of future investigation which of factors arising from the activities of municipalities most directly affect the components of own non-tax revenue in relation to the economic performance of NUTS 3 regions.
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