Received:
2020-09-11 | Accepted:
2020-11-26 | Published:
2021-03-30
Title
Modern trends in the economic differences between countries and within them: comparison of the world and the European Union
Abstract
This article aims to test empirically two popular hypotheses about territorial economic differences in the modern world. According to the first hypothesis, economic differences between countries in the modern world are not as large as regions’ differences within countries. According to the second hypothesis, the decline in the degree of economic differences between countries is due to the relatively faster economic development of capital regions. Investigation of the economic differences on various territorial levels realized applying the method of comparing the coefficient of variation of the income of the population. The source of the empirical data for this research is the Sub-national Human Development Index (SHDI) database created by the Netherlands Institute for Management Research of the Radboud University, which contains such indicator as Income index of SHDI in the inner regions of 161 countries in the world for the period from 2000 to 2017. A comparison of economic differences at different territorial levels revealed that in the 21st century, neither in the world as a whole nor in the EU regions’ differences within countries are higher than differences between countries. However, starting with 2015 the economic differences between inner regions of the EU countries began to outweigh the economic differences between countries themselves, and this is the specifics of the European Union. In the 21st century, both inter-country and intra-country regional economic differences in the EU countries are significantly lower than in the world as a whole. The economic importance of non-capital regions is gradually increasing in the EU, although for the time being the EU (and probably the world as a whole) still characterized by the economic growth, which is based mainly at the expense of capital regions.
Keywords
economic differences, world, European Union, capital regions, coefficient of variation
JEL classifications
O47
, R11
, C33
URI
http://jssidoi.org/jesi/article/771
DOI
Pages
110-121
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Atkinson, A.B. (1970). On the measurement of inequality. Journal of Economic Theory, 2, 244-63. 90039-6 https://doi.org/10.1016/0022-0531(70)
Search via ReFindit
Berzins M. (2011). Iekšzemes migrācijas reģionālās dimensijas Latvijā. [Regional dimensions of domestic migration in Latvia] Proceedings of the Latvian Academy of Sciences, A (3/4), 35-54. http://www.lasproceedings.lv/wp-content/uploads/2020/12/LZA-Vestis-A-dala-2011.-gada-3.-un-4.-numurs.pdf
Search via ReFindit
Boronenko, V., Mensikovs, V., & Lavrinenko, O. (2014). The impact of EU accession on the economic performance of the countries' internal (NUTS 3) regions. Journal of Economics and Business, 32 (2), 313-341. https://www.efri.uniri.hr/upload/Nastavnici%20i%20istrazivanja/Arhiva%20Zbornika%20radova/04-boronenko_mensikovs_lavrinenko-2014-2-1420787428.pdf
Search via ReFindit
Chatterji, M. (2014). Walter Isard and the role of Regional Science and Peace Science for the poor countries. International Regional Science Review, 37 (1), 96-106. https://doi.org/10.1177/0160017613484927
Search via ReFindit
Drobishevkiy, S., Lugovoy, О., Astafyeva, Y., Polevoy, D., Kozlovskaya, А., Trunin, P., & Lederman, L. (2005). Факторы экономического роста в регионах РФ. [Factors of the Economic Growth in Regions of the RF] Moscow: IEPP.
Search via ReFindit
Dunford, M. (2008). After the three Italies the (internally differentiated) North-South divide: analysing regional and industrial trajectories. Annales de Géographie, 664 (6). https://www.researchgate.net/publication/228621238
Search via ReFindit
European Commission. (2011). Regions in the European Union — Nomenclature of territorial units for statistics NUTS 2010/EU-27. Luxembourg: Publications Office of the European Union. https://ec.europa.eu/eurostat/documents/3859598/5916917/KS-RA-11-011-EN.PDF
Search via ReFindit
Eurostat. (2018). Eurostat Regional Yearbook 2018. Luxembourg: Publications Office of the European Union.
Search via ReFindit
Gibbons, S., & Vignoles, A. (2011) Geography, choice and participation in higher education in England. Regional Science and Urban Economics, 42 (1-2), 98-113. https://doi.org/10.1016/j.regsciurbeco.2011.07.004
Search via ReFindit
Granberg, A. (1997). Regional science and new regional policy in Russia. In M. Chatterji (Ed.), Regional Science: Perspectives for the Future (pp. 248–262). London: Macmillan Press. https://link.springer.com/chapter/10.1007/978-1-349-25514-6_17
Search via ReFindit
Howe, E., & Stabler, J. (1989). Canada divided: the optimal division of an economy into regions. ]ournal of Regional Science, 29, 191-211. https://doi.org/10.1111/j.1467-9787.1989.tb01232.x
Search via ReFindit
Hua, J., & Gu, Ch. (2001). Economic analysis on regional economic difference. Geographical Research, 20 (3), 322-329.
Search via ReFindit
Iodchin, А. (2007). Эконометрическое моделирование межрегиональной конвергенции в России: автореферат диссертации. [Econometric Modelling of the Regional Convergence in Russia: Resume of the Dissertation] Moscow: Moscow State University. https://www.dissercat.com/content/ekonometricheskoe-modelirovanie-mezhregionalnoi-konvergentsii-v-rossii
Search via ReFindit
Isard, W. (1960). Methods of Regional Analysis: Introduction to Regional Science. Cambridge, MA: MIT Press and John Wiley.
Search via ReFindit
Isard, W. (1975). Introduction to Regional Science. New York: Prentice Hall.
Search via ReFindit
Kanbur, R., & Venables, A.J. (2005). Spatial inequality and development. In R. Kanbur & A.J. Venables (Eds.), Spatial Inequality and Development (pp. 115-132). Oxford: Oxford University Press. https://global.oup.com/academic/product/spatial-inequality-and-development-9780199278633?cc=lv&lang=en
Search via ReFindit
Kanbur, R., & Zhang, X. (2005). Fifty years of regional inequality in China: a journey through central planning, reform and openness. Review of Development Economics, 9 (1), 87–106. https://doi.org/10.1111/j.1467-9361.2005.00265.x
Search via ReFindit
Kanbur, R., Venables, A.J., & Wan, G. (2006). Spatial Disparities in Human Development: Perspectives from Asia. United Nations Press. https://collections.unu.edu/view/UNU:2547
Search via ReFindit
Karwat-Wozniak, B. (2011). Regional differentiation in the socio-economic development conditions of the agriculture in Poland. Economics & Sociology, 4 (2), 11-25. https://www.economics-sociology.eu/files/E&S_4_2_guest.pdf
Search via ReFindit
Kim, S. (1998). Economic integration and convergence: U.S. regions, 1840–1990. Journal of Economic History, 58, 659–683. https://doi.org/10.1017/S0022050700021112
Search via ReFindit
Kim, S. (2008). Spatial inequality and economic development: theories, facts and policies. Working Paper No. 16. Washington: The World Bank. https://openknowledge.worldbank.org/handle/10986/28050?locale-attribute=es
Search via ReFindit
Knight, J., Shi, L., & Renwei, Zh. (2006). Divergent means and convergent inequality of incomes among the provinces and cities of urban China. In R. Kanbur, A.J. Venables, & G. Wan (Eds.), Spatial Disparities in Human Development: Perspectives from Asia (pp. 126-144). United Nations Press. https://collections.unu.edu/view/UNU:2547
Search via ReFindit
Kolaríkova, J., Dvoulety, O., & Kolarík, P. (2018). Economic performance of the NUTS III regions in the Czech Republic in the context of entrepreneurship subsidies from the EU structural funds. Journal of Economics and Business (Proceedings of Rijeka Faculty of Economics), 36 (1), 129-153. https://doi.org/10.18045/zbefri.2018.1.129
Search via ReFindit
Kovacs, Z. (2004). Socio-economic transition and regional differentiation in Hungary. Geographical Bulletin, LIII (1-2). https://www.researchgate.net/publication/228962218
Search via ReFindit
Krauklis, A. (2000). Living with diversity in Latvia: people, nature and cultural landscape. Folia Geographica, 8, 1-14. https://www.geo.lu.lv/fileadmin/user_upload/LU.LV/Apaksvietnes/Fakultates/www.gzzf.lu.lv/Folia_Geographica/Geografiski_raksti_VIII.pdf
Search via ReFindit
Krisjane, Z., & Bauls, A. (2007). Migrācijas plūsmu reģionālās iezīmes Latvijā. [Regional features of migration flows in Latvia] Paaudžu nomaiņa un migrācija Latvijā (Stratēģiskās analīzes komisijas zinātniski pētnieciskie raksti), 4 (15), 130-143.
Search via ReFindit
Kule, L., Krisjane, Z., & Berzins, M. (2010). Rhetoric and reality of pursuing territorial cohesion in Latvia. In N. Adams, G. Cotella, & R. Nunes (Eds.), Territorial Development, Cohesion and Spatial Planning: Building on EU Enlargement (pp. 586-645). London: Routledge.
Search via ReFindit
Kuttor, D. (2009). Territorial inequalities in Central Europe: spatial analysis of the Visegrad countries. Romanian Review of Regional Studies, V (1). https://core.ac.uk/download/pdf/27060466.pdf
Search via ReFindit
Lavrinovica, I., & Lavrinenko, O. (2011). Iedzīvotāju ienākumu diferenciācija Latvijas reģionos. [Income Differentiation of the Population in Latvia’s Regions] Daugavpils: Publishing House of Daugavpils University “Saule”. https://www.researchgate.net/publication/299505811
Search via ReFindit
Lavrinovich, I., Lavrinenko, O., & Jefimovs, N. (2012). Sustainable development, economic growth and differentiation of incomes of Latvian population. Journal of Security and Sustainability, 2 (1), 33-39. https://doi.org/10.9770/jssi/2012.2.1(3)
Search via ReFindit
Lubrano, M. (2017). Lorenz curves, the Gini coefficient and parametric distributions. The Econometrics of Inequality and Poverty. http://www.vcharite.univ-mrs.fr/PP/lubrano/cours/Lecture-4.pdf
Search via ReFindit
OECD. (2011). Regional economic disparities. In, OECD Regions at a Glance 2011 (pp. 40-45). Paris: OECDPublishing. https://www.oecd-ilibrary.org/docserver/reg_glance-2011-11-en.pdf?expires=1613197250&id=id&accname=guest&checksum=EB92DDDDE7D33EDE0B812E175E373390
Search via ReFindit
OECD. (2013). OECD Regions at a Glance 2013. Paris: OECD Publishing. https://www.oecd-ilibrary.org/urban-rural-and-regional-development/oecd-regions-at-a-glance-2013_reg_glance-2013-en
Search via ReFindit
OECD. (2016). OECD Regions at a Glance 2016. Paris: OECD Publishing. http://www.oecd.org/regional/oecd-regions-at-a-glance-19990057.htm
Search via ReFindit
Okuneviciute-Neverauskiene, L., Danileviciene, I. & Tvaronaviciene, M. (2020). Assessment of the factors influencing competitiveness fostering the country’s sustainability. Economic Research-Ekonomska Istraživanja, 33(1), 1909-1924. https://doi.org/10.1080/1331677X.2020.1763821
Search via ReFindit
Paas, T., & Schlitte, F. (2006). Regional income inequality and convergence processes in the EU-25. ERSA conference papers, European Regional Science Association. http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa06/papers/229.pdf
Search via ReFindit
Prakash, R., Garg, P. (2019). Comparative assessment of HDI with Composite Development Index (CDI). Insights into Regional Development, 1(1), 58-76. https://doi.org/10.9770/ird.2019.1.1(5)
Search via ReFindit
Radboud University. (2020). The Global Data Lab, Sub-national HDI database. https://hdi.globaldatalab.org/areadata/shdi/
Search via ReFindit
Rivza, B. (Ed.) (2018) Zināšanu ekonomika Latvijas lauku un reģionu dzīvotspējai. [Knowledge Economy for the Viability of Latvia’s Countryside and Regions] Jelgava: Publishing House of Jelgava. https://llufb.llu.lv/LLUgramatas/Monografija_Zinasanu_ekonomika_Latvijas_lauku_regionu_dzivotspejai.pdf
Search via ReFindit
Rodriguez-Pose, A., & Sanchez-Reaza, J. (2005). Economic polarization through trade: trade liberalization and regional growth in Mexico. In R. Kanbur, A.J. Venables (Eds.), Spatial Inequality and Development (pp. 152-179). Oxford: Oxford University Press. https://collections.unu.edu/view/UNU:2547
Search via ReFindit
Ruitebeek, H. (1996). Distribution of ecological entitlements: implications for economic security and population movement. Ecological Economics, 17, 49-64. 00103-4 https://doi.org/10.1016/0921-8009(95)
Search via ReFindit
Sala-i-Martin, X. (1995). The classical approach to convergence analysis. Economics Working Paper No. 117. Yale: Yale University, Universitat Pompeu Fabra. https://ideas.repec.org/p/upf/upfgen/117.html
Search via ReFindit
Sala-i-Martin, X. (1996). Regional cohesion: evidence and theories of regional growth and convergence, European Economic Review, 40(6), 1325-1352. 00029-1 https://doi.org/10.1016/0014-2921(95)
Search via ReFindit
Stankevics, A., Ignatyeva, S., & Menshikovs, V. (2014). Higher education’s contribution to economic performance and innovativeness in Latvia: exploratory research. Economic Annals, 202(59), 7-41. https://doi.org/10.2298/EKA1402007S
Search via ReFindit
Styme S., & Jackson T. (2000). Intra-generational equity and sustainable welfare: a time series analyses for the UK and Sweden. Ecological Economics, 33, 219-236. 00144-5 https://doi.org/10.1016/S0921-8009(99)
Search via ReFindit
Tvaronaviciene, M. (2018). Towards efficient policy making: Forecasts of vulnerability to external global threats. Journal of Security and Sustainability Issues, 7 (3). https://doi.org/10.9770/jssi.2018.7.3(18)
Search via ReFindit
Ullman E. (1958) Regional development and the geography of concentration. Papers and Proceedings of the Regional Science Association, 4, 179-198. https://doi.org/10.1111/j.1435-5597.1958.tb01629.x
Search via ReFindit
UNDP. (2020). United Nations Development Programme, Human Development Index (HDI). http://hdr.undp.org/en/content/human-development-index-hdi
Search via ReFindit
RSS 1.0