Financial self-sufficiency of Ukrainian territorial communities and local economic development: Modeling the causal relationship

The financial self-sufficiency of communities determines their ability to create additional jobs, attract investment resources, offer quality social services, and improve the population’s living standards well-being. study aims identify casual relationships between local economic development Ukrainian territorial during instability. paper used integrated assessment based on a spatial approach (identifying level development), indicative method (calculating empirical values communities), VEC model (analyzing sensitivity changes in self-sufficiency), balanced multi-component regression (modeling relationship self-sufficiency). Data were gathered all Ukraine 2021. results show that highest was observed Dnipropetrovsk oblast (empirical coefficient equal 0.855), high levels Kharkiv, Zaporizhzhia, Odesa, Kyiv, Poltava oblasts (0.787; 0.687; 0.684; 0.663 each, respectively), moderate Zakarpattia (0.448) Kirovohrad (0.433) oblasts. With increased self-sufficiency, can exceed 2%; 1% increase decentralization tax revenues expenditures simultaneously leads an attractiveness climate as indicator (2.3-6.6%). proves regions characterized by low demonstrated higher interbudgetary than those with development.