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The Impact of Economic Factors on the Stability and Levels of Revenue of Urban Municipalities in the Industrialized Region: The Case of the Silesian Voivodeship in Poland

Year: 2026
Type: article
Abstract: Urban municipalities, particularly in industrialized regions, play a crucial role in efforts to achieve sustainable development. Their activity in this area requires revenue stability, which is determined by numerous factors. The main goal of this study is to assess the impact of economic factors on the stability and levels of revenue of the urban municipalities in an industrialized region. Our multi-stage research procedure employed a combination of methods: alongside an in-depth literature review, it included multiple regression and correlation analysis, as well as panel data analysis using Two-Way Fixed Effects (TWFEM) model with cluster-robust standard errors (SEs) and group-interacted Two-Way Fixed Effects (TWFEM) model with cluster-robust standard errors (SEs). The empirical analysis covered all 49 urban municipalities in Poland’s most industrialized region, making the research sample complete and representative. Covering the 2011–2024 period, the study revealed that each of the five economic factors analyzed had a no statistically significant impact on the stability under study. In contrast, the influence of these factors on the levels of revenue was varied. The strength of this influence was determined for each individual factor. The analyses showed that, among the factors examined, the concentration of enterprises has the statistically significant effect on the levels of revenue—both total revenue and own-source revenue—of urban municipalities in an industrialized region, regardless of their level of wealth. The share of entities operating in industry and construction in the total number of registered business entities has a significant impact on total revenue, but no such impact on own-source revenue. The influence of the remaining three factors on both total revenue and own-source revenue was assessed as statistically insignificant.
DOI: 10.3390/su182111426
Language: English
Open Access status: gold
Estimated APC paid: $2,896
OpenAlex ID: W7225618241
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