Assessment of The Efficiency of The Territorial Administrative Reorganization of The Parishes of The District of Braga

Abstract

Purpose: The objective of this study was to identify whether the reorganization of parishes carried out in Portugal, in the District of Braga, in 2013, is the one that enhances the greatest efficiency gains. Theoretical framework: The study is based on the relationship between financial sustainability, efficiency, and territory, seeking the optimal dimension of the local power unit. Methodology: The study is based on the Data Envelopment Analysis method, using data from the parishes of the district of Braga in two moments, the year 2012 and the year 2015. For this year, a new territorial reorganization was also proposed and analysed. Results and Conclusions: The reform increased efficiency in 10 of the 14 municipalities. However, it was possible to observe that a reorganization that gives the parishes a larger size, that is, closer to the average seen in the European Union, would bring average efficiency gains in all municipalities. Thus, it is concluded that the reform of the parishes carried out in 2013 in the district of Braga is not the one that allows greater efficiency, since this can be enhanced if they benefit from a larger geographical scale. Research implications: The research contributes to the knowledge of the efficiency of territorial reforms, namely, regarding the impact of the dimension in this context, as well as to the evaluation of the public policy adopted, allowing the public decision-maker to make a sound and sustained decision. Originality/value: This study is original because it studies smaller units of local government, the parishes, on which research is very incipient, namely in Portugal.