SPATIAL ANALYSIS OF THE INTERRELATIONSHIP BETWEEN THE POPULATION DENSITY OF TERRITORIAL COMMUNITIES AND TAX REVENUES TO LOCAL BUDGETS

Abstract

This article presents a comprehensive analysis of territorial communities in the Vinnytsia region of Ukraine, focusing on the relationship between population density and tax revenues per capita in local budgets. The study is based on official statistical data, including indicators of area, population size, and fiscal revenues, and applies a comparative and spatial analysis approach to identify patterns of socio-economic development across different types of communities. The results reveal a moderate positive correlation between population density and tax revenues per resident, suggesting that higher levels of population concentration are generally associated with increased economic activity and stronger fiscal capacity. This confirms the presence of agglomeration effects typical for urbanized areas, where diversified economic structures and more intensive labor markets contribute to higher budget revenues. At the same time, the study demonstrates that this relationship is not strictly linear, as fiscal performance is also significantly influenced by additional factors such as economic specialization, presence of large enterprises, and quality of local governance. The analysis highlights substantial spatial disparities within the region. Urban communities, particularly administrative centers, act as key drivers of economic growth and accumulate the largest share of financial resources. In contrast, most rural and settlement communities are characterized by low population density, limited economic diversification, and weaker fiscal capacity, which constrains their ability to provide infrastructure and public services. However, some rural communities exhibit relatively high tax revenues due to the presence of large industrial facilities, indicating that economic structure can outweigh demographic factors. Overall, the socio-economic landscape of the Vinnytsia region is markedly asymmetric. The findings emphasize that while population density is an important determinant of fiscal capacity, it is not the only one. Effective resource management, economic diversification, and strategic development policies are crucial for strengthening the financial sustainability of territorial communities. The study provides a basis for developing differentiated regional policies aimed at reducing disparities and enhancing territorial cohesion.