engleski

IS THERE A STATISTICAL LINK BETWEEN THE REVENUES AND SELECTED EXPENDITURE OF REGIONAL SELF-GOVERNMENT OF THE REPUBLIC OF CROATIA

The role of regions in national economies has changed significantly in recent times, due to at least two reasons: (a) globalization and (b) needs for structural adjustment in the view of ever changing economic environment. When we talk about sub-national levels of organization of EU countries, usually we distinguish three groups (degrees). Units of the first level of organization of local government are closest to the citizens (cities, municipalities, communes and similar forms of organization). The second level, often referred to as intermediate, consists of units that present the transition from local to regional or federal level (county, district, province, territory, etc.). The third degree, the most powerful for its rights, is made up of regional units (regions) or federal states, if states are established as federations. In Croatia, regional units are called counties and there are twenty of them, plus the City of Zagreb which has the authority and legal status of both a county and a city. This paper examines statistical links between revenues of twenty Croatian counties in the period from 2002 to 2015 and the selected key expenditure functions in the mentioned period. The method used in the research is regression analysis. The models analyze the direction and strength of statistical links between the income of a county as dependent variable and four types of expenditure as independent variables. According to research results all four independent variables proved to be significant only in case of one county, while in case of all other counties all independent variables or a number of them proved to be insignificant.

Expenditure, Income, Regional self-government, Regression analysis

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