Municipalities assuming important roles in the economic development of their regions has become one of the most prominent trends of our time. The impact of municipalities in this regard consists of developing policies that will provide sustainable benefits in the long term. The successful execution of this process is possible through participatory, high-quality, honest, and transparent governance processes and strategic planning. Local-level organization of municipalities can be more functional in this matter compared to centralized organizations. This is because the functions performed by municipalities encompass various factors that affect the economic development of the region, including the effectiveness of service delivery, economic activities, projects implemented, and their effectiveness in the management process. Besides economic initiatives and investment support that provide additional resources, the efficient utilization of existing resources and service approaches focused directly on the needs of citizens play a decisive role in the economic process. It is observed that municipalities demonstrating strong economic activity also have a high level of service perception.