Abstract:The competition between municipalities is problematic due to a common misconception that rivalry is impossible because documents regulating finances are the same across all local self-governments. In contrast, scientific research shows that the livability of one municipality can differ to another because of differences in their social-economic benefits. This distinction is not conditioned by geographic location or other special features of the municipality but rather by the amount of funds assigned and allocated to social and public welfare. This article aims to reveal the factors pertaining to the municipalities' fiscal competitiveness that affect economic growth within the state. This has relevance as a reallocation of a municipality's expenditure could provide new possibilities towards increasing future revenue of the municipality. For reaching the aim is examined by evaluating the effect of municipalities' fiscal competitiveness on Lithuania's economic growth using the volume and structure of expenditure in its municipalities. Results show that the major channels determining the fiscal competitiveness of a region are human resources, the business sector, and the institutional environment, and that these differ among municipalities. JEL Classification Numbers: H75, H76, R50; DOI: http://dx.doi.org/10.12955/cbup.v5.958

Nowadays municipal revenue management and administrative issues are more important and problematic. It is noted that in Lithuania’s separate municipalities collected budget revenues, formed budget expenditure, set borrowing limits, allocated from the state budget financial resources (grants) are significantly different. In order to determine reasons for these differences, it is appropriate to analyze the municipal fiscal competitiveness and identify fiscal competitiveness factors of individual Lithuanian municipalities. Understanding municipal fiscal competitiveness factors helps to explain why some municipalities more successfully than others increase tax revenue level and financial - social opportunities of their populations. This scientific article is funded by the Research Council of Lithuania according to the project „The evaluation of municipalities’ fiscal competitiveness in the context of economic growth” (2015-2018), registration No. MIP-013/2015.

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The subject of the analysis in this paper is human capital formation at the individual level, applying business simulation models as a learning tool that meets requirements of the modern learning process that should include and link personal experience, encourage thinking, acquisition of new knowledge, formation of new experience and its application in analysing practical situations. The subject of the research paper: human capital formation using business simulation model. The aim of the research - to analyze the application possibilities of business simulation models for the human capital formation. To achieve the aim of the research the following tasks were set: to disclose the concept of business simulation model; to validate the applicability of business simulation models for human capital formation on the basis of empirical research. The subject of the analysis in this paper is human capital formation at the individual level, applying business simulation models as a learning tool that meets requirements of the modern learning process that should include and link personal experience, encourage thinking, acquisition of new knowledge, formation of new experience and its application in analysing practical situations. Research methods: analysis of scientific literature using operations of analysis and synthesis, comparison and systematization, questionnaire survey, and the following methods of statistical data analysis.