Social and regional asymmetries in economic recovery after currency integration

Lyubomira Spasova ()
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Lyubomira Spasova: Department of Social Sciences and Business Language Training, Faculty of Economics, Trakia University, Stara Zagora, Bulgaria

Business & Management Compass, 2026, issue 1, 41-54

Abstract: Background and aim:Currency integration is widely regarded as a mechanism for enhancing macroeconomic stability and fostering economic convergence within the European Union. However, growing empirical evidence suggests that post-integration economic recovery is unevenly distributed across regions and social groups. This study examines the extent to which currency integration generates socially and regionally asymmetric recovery patterns, with a particular focus on Bulgaria situated within a broader European context.Scope:The analysis investigates regional disparities between economically advanced and peripheral regions, as well as social differences in income distribution, employment dynamics, and poverty risk. Comparative insights are drawn from selected European economies that have undergone similar currency integration processes.Methods:The study applies a quantitative comparative research design combining temporal (before–after) and regional analysis at the NUTS 2 level. Secondary data from Eurostat, the National Statistical Institute of Bulgaria, the World Bank, and the European Central Bank are used to examine macroeconomic, regional, and social indicators over the period 2010–2024. Descriptive statistics, dispersion measures, trend analysis, and Pearson correlation analysis are employed to assess regional dynamics, social distributional effects, the role of fiscal policy, and short-versus long-term recovery patterns.Results:The findings indicate persistent regional disparities in recovery trajectories, with economically more developed regions exhibiting faster and more stable growth. Socially, higher-income and more market-adaptive groups benefit disproportionately from post-integration recovery, while vulnerable households remain more exposed to inflationary pressures and slower real income growth. Correlation analysis suggests that fiscal instruments, particularly public expenditure and investment, are systematically associated with improved labor market outcomes and reduced poverty risk, although full convergence remains incomplete.Conclusions:Currency integration does not automatically ensure balanced economic recovery. In the absence of effective compensatory mechanisms, it may reinforce pre-existing social and regional inequalities. Targeted fiscal, social, and regional policies are therefore essential to support inclusive and territorially balanced recovery, especially in structurally heterogeneous European economies.Originality:The study provides an integrated theoretical and empirical assessment of social and regional asymmetries in post-integration recovery, offering systematic quantitative evidence from Bulgaria within a comparative European framework.

Keywords: currency integration; economic recovery; social asymmetries; regional disparities; fiscal policy; European Union; Bulgaria (search for similar items in EconPapers)
JEL-codes: D63 F45 R11 (search for similar items in EconPapers)
Date: 2026
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