THEORETICAL DISCUSSION OF ECONOMIES OF SCALE IN MUNICIPALITIES IN THE CONTEXT OF EFFICIENCY-PRODUCTIVITY AND DEMOCRACY- PARTICIPATION

Nazlı Özcan Sarıhan
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Nazlı Özcan Sarıhan: GuMuŞHANE UNIVERSITESI, TORUL MESLEK YuKSEKOKULU, SOSYAL HİZMET VE DANIŞMANLIK BÖLuMu, SOSYAL HİZMETLER PR.

Ekonomi Maliye Isletme Dergisi, 2023, vol. 6, issue 2, 112-126

Abstract: Economies of scale, an economic theory, are at the forefront of the reforms made to provide municipalities with a more effective and efficient function. It is thought that the financial inadequacies of local government units, which are considered small-scale in terms of population or geographical area, and, on the other hand, the need to prevent waste of resources and to achieve effectiveness, efficiency and integrity by eliminating the fragmented structure in local government units arise. In this context, scale theory is being tried to be integrated into public administration, especially in order to provide local public services more economically. As a result, it is a controversial issue whether the theory of economies of scale is beneficial in the provision of local public services in terms of participation and democracy, as well as the concepts of effectiveness and efficiency. In this study, as a result of the literature review, it is aimed to briefly explain the concepts of effectiveness-productivity and democracy-participation and to evaluate and reveal their relations with economies of scale from a positive and negative perspective. In this context, it is stated that many studies and discussions have come to the agenda after this reform in municipalities, and as a result of their evaluation, it is stated that the expansion of the scale may have positive effects up to a certain point in terms of effectiveness and efficiency. However, it is concluded that these cost savings expectations are not justified in all cases and that they generally have negative effects in terms of participation and democracy.

Keywords: Economies of Scale; Municipality; Event; Participation (search for similar items in EconPapers)
JEL-codes: H70 H71 H72 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2023-6-2-1363655

DOI: 10.46737/emid.1363655

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