Assessing of the influence of the local government’s financial situation on awarding circular public procurements

This paper investigates the relationship between the financial situation of local governments (LGs) and the awarding of circular public procurements (CPP) within the circular economy. The investigation was based on a population research sample of 200 LGs representative for all Polish LGs (district (powiat), city on district rights, urban, urban-rural, and rural municipality (gmina)) selected in stratified random sampling. The empirical research was conducted using CATI research. Logistic regression analysis was used to predict the binary outcome of awarding CPP (dependent variable) or not awarding CPP by analysing the relationship with the set of defined financial indicators (independent variables). The conducted study revealed that the higher the level of LG expenditure, the more eager LGs are to award CPP. Surprisingly, LGs with deficits, lack of operating surplus ratio or low level of financial independence were as active in awarding CPP as LGs with no deficit, high level of operating surplus ratio or high level of financial independence.