Fiscal Decentralisation of Services: The Case of the Local Public Sector in European Countries

Reference: Halaskova, M, Halaskova, R., Gavurova, B., Kubak, M. (2021). Fiscal Decentralisation of Services: The Case of the Local Public Sector in European Countries. Journal of Tourism and Services, 23(12), 26-43. doi: 10.29036/jots.v12i23.234

Authors

DOI:

https://doi.org/10.29036/jots.v12i23.234

Keywords:

Service sector, local public sector, public services, fiscal decentralisation, local expenditure, cluster analysis.

Abstract

Services are a dynamically developing economic sector in all countries. The paper focuses on public services, evaluated from the perspective of fiscal decentralization. It aims to evaluate the level of fiscal decentralization of expenditures in selected categories of public services in European countries. For this purpose, government expenditures by the local government sector are analyzed in the set of the selected 28 European countries in the period 2010-2018. Cluster analysis has been carried out in order to determine four clusters of countries based on their level of decentralization of expenditures on services. The results show differences in the extent of decentralization between the European countries in the provision of specific public services and reflect the form of financing of local public needs. A low level of fiscal decentralization of expenditures on services (public order and safety; housing and community amenities; recreation, culture, and religion) was observed in the majority of the countries. However, the majority of the countries failed to prove a high level of fiscal decentralization of expenditures on services (social protection, health, education) and a medium level of decentralization of expenditures in terms of general public services and services of economic affairs. These findings demonstrate that the degree of decentralization of public services is determined, to a certain degree, determined by country history and its geographical location, as well as by the different roles of sector-specific public policies. The findings can be helpful for creators of local public policies, strategic plans, and financial concepts.

Author Biographies

Martina Halaskova, VŠB -Technical University of Ostrava, Faculty of Economics, Ostrava, Czech Republic

Email: martina.halaskova@vsb.cz

Assoc. Prof. Martina Halaskova, Ph.D. is an Associate Professor at the VŠB-Technical University of Ostrava, Faculty of Economics, where she teaches economic subjects that focus on economy of public administration and the public sector. In her scientific research activity, she deals with public economy, public services and selected areas from the public sector (sports, education, research and development) in the Czech Republic and European context. She cooperates with other universities in the Czech Republic and Slovakia. She is a member of the Czech Economic Society (CES) and a reviewer of selected domestic and foreign scientific journals.

Renata Halaskova, University of Ostrava, Faculty of Education, Ostrava, Czech Republic

Email: renata.halaskova@osu.cz

Assoc. Prof. Renata Halaskova, Ph.D. is an Associate Professor at the University of Ostrava, where she teaches economics subjects that focus on services, public economics and administration and public services. In her scientific research activity, she deals with public economics, funding of public services, social policy and analysis of social services in the Czech Republic. Also, she cooperates with other universities in the Czech Republic. She is a member of the Czech Economic Society (CES) and a reviewer of selected domestic and foreign scientific journals.

Beata Gavurova, Technical University of Košice, Faculty of Mining, Ecology, Process Control and Geotechnologies, Institute of Earth Resources, Košice, Slovak Republic

Email: beata.gavurova@tuke.sk

Prof. Beata Gavurova, Ph.D. is a Professor at the Technical University of Košice, Faculty of Mining, Ecology, Process Control and Geotechnologies, Institute of Earth Resources. She is an expert in finance, financial analysis and financial risk management. She focuses in her research work on issues of measurement and performance management in various sectors, process management and process optimization, strategic and performance benchmarking. Her dominant research area is the development and testing in the management and performance measurement, the evaluation of methodologies and the preparation of an application platform for innovative management and performance measurement with the support of ICT.

Matus Kubak, Technical University of Košice, Faculty of Economics, Košice, Slovak Republic

Email: matus.kubak@tuke.sk

Assoc. Prof. Matus Kubak, Ph.D. focuses his scientific and research activities on the use of parametric and non-parametric quantitative methods on economic issues and data mining. His research interest is in experimental economics, health economics, public procurement and agent based modelling.

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Published

2021-12-22