Explaining regional disparities in Central and Eastern Europe: The role of geography and of structural change
Sheila Chapman and
The Economics of Transition, 2018, vol. 26, issue 3, 469-494
The paper analyses the determinants and the evolution of income disparities across regions within Central and Eastern European Countries (CEECs) over 1991â€“2011. We add to the literature in different ways. First, we adapt the categories that Rodriguezâ€ Pose used for studying convergence among old EU members to CEECs regions. This allows us to assess the relevance of geoâ€ sectoral groups (urban areas, old industrialized areas and peripheral areas) for newcomer regions. Second, we introduce a new category, that of â€˜successful Foreign Direct Investment (FDI)â€ based restructuringâ€™ in order to capture regions that, often through considerable FDI, manage to reconvert their old industrial base. We then analyze whether this group helps understand catchingâ€ up/falling behind processes in CEECs. We test the relevance of these groups by means of both nonâ€ parametric and spatial regression analyses. We find that they help explain the increase in withinâ€ countriesâ€™ regional disparities especially after the turn of the century.
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Persistent link: https://EconPapers.repec.org/RePEc:bla:etrans:v:26:y:2018:i:3:p:469-494
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