Spatial Disparities in Productivity in Central and Eastern Europe

Roberto Ezcurra and Pedro Pascual Arzoz

Eastern European Economics, 2007, vol. 45, issue 3, 5-32

Abstract: This paper examines the evolution of territorial imbalances in productivity in thirty-nine Central and East European regions between 1992 and 2001. The results obtained show an overall reduction in regional inequality over the study period, though they also indicate simultaneous between-country convergence and within-country divergence. The polarization of the distribution under consideration is seen to decrease, while the registered level of intradistribution mobility is relatively low. The analysis also indicates that regional disparities in output per worker in Central and Eastern Europe are closely linked to intrinsic differences among regions. Finally, we investigate the role played in explaining observed dispersion in sectoral productivity levels by the national-level factors, spatial location, agglomeration economies, and geographical distance from the economic core of the European Union.

Date: 2007
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