Tag: R12

WHO CARES ABOUT REGIONAL INEQUALITIES? EFFECTS OF FISCAL CONSOLIDATION

Vinko MUSTRA

Assistant professor Faculty of Economics, University of Split, Cvite Fiskovića 5, 21000 Split, Croatia

vmustra@efst.hr

Abstract

The most recent global economic crisis and the concerns about long-term (un)sustainability of public finances has supported the implementation of budgetary consolidation measures. Although there are relatively large number of papers investigating the impact of fiscal consolidation on different aspect of economy this paper represent unique attempt of investigating the effects of fiscal consolidation on regional inequalities. We test the hypothesis that in the period of fiscal consolidation, when some spending cut and/or tax hikes, less developed regions are not in position to protect themselves against undesired redistributive policies which put them in more disadvantaged position and increase regional inequalities. In empirical part of the paper we explore the impact of fiscal consolidation on regional inequalities on national levels among 13 EU member countries for period 1995-2009. Two groups of variables are particularly important for this study: measure of regional inequality and fiscal consolidation. Due to fact that recent literature recognizes problems with using cyclically-adjusted primary budget balance (CAPB) as a measure for fiscal consolidation we extend regional empirical literature by using a new database of fiscal consolidation that successfully tackles all this issues. The results indicate that fiscal consolidation led by tax hikes increases regional inequalities and that fiscal consolidation led by spending cuts doesn’t have significant influence on regional inequalities. Finally, the paper highlights that fiscal consolidation is not only the matter of the public debt levels or economic growth, but also important regional issue.

Keywords: Regional inequalities, Fiscal consolidation, European Union

JEL classification: R12, E62, H23

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ZIPF’S LAW AS ASSESSMENT TOOL OF URBAN INEQUALITY

Inna MANAEVA

World Economy Chair –Belgorod State National Research University, Russia, http://www.bsu.edu.ru
In.manaeva@yandex.ru

Svetlana RASTVORTSEVA

World Economy Chair –Belgorod State National Research University, Russia, http://www.bsu.edu.ru
Srartvortseva@gmail.ru

Abstract

The paper is concerned with the topical issues of regional economics – urban inequality in the Russian Federation. Empirical investigations of Zipf’s law were studied in the foreign and Russian literature. Application of this law for assessment of urban inequality using the method of least squares was substantiated. Assessment of urban inequality within the boundaries of the RF federal districts by the indices of population, volume of own production of goods and services is carried out in the paper. The authors used the data of the Federal State Statistics Service for 2014, the investigation included the settlements with the status of a town and with the population over 100 thousand people. Zipf’s law displays over the entire territory of Russia. By the population index in the federal districts, Zipf’s factor varies within the range from – 0.7 (Northwestern Federal District) to – 0.9 (North Caucasian Federal District). As a result of the performed analysis of the Russia’s cities by the population index, Zipf’s factor is within the range from –0.3 (Northwestern Federal District) to –1.2 (Central Federal District). Analysis of the volume of production of goods and services determined the range of Zipf’s factor from –0.26 (North Caucasian Federal District) to – 0.7 (Central and Volga Federal Districts). By the index of population and volume of production of goods and services the following “primate cities” are determined: Moscow and Saint Petersburg, Yekaterinburg (population), which allows to draw a conclusion on their dominance in urban system and high differentiation of cities by these indices. The obtained empirical estimators prove that Russia has no intermediate group of cities macroregional centers. The results of the investigation can be used for creation of methodological tools to develop the mechanisms of smoothing of interregional inequality, program of economic and social development of cities.

Keywords: city, spatial inequality, Zipf’s law, population, population density

JEL classification: R12

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MAPPING THE SECTORAL CONCENTRATION OF THE WORKFORCE ACROSS EU REGIONS, 2009-2013

Emily VGENOPOULOU

Athens University of Economics and Business

George ECONOMOU

Athens University of Economics and Business

Pródromos PRODROMÍDIS

Athens University of Economics and Business, Centre for Planning and Economic Research, Postal address: KEPE, 11 Amerikis str., Athens 15342, Greece.
pjprodr@kepe.gr
(Corresponding author)

Abstract
The paper explores the evolution of the sectoral concentration of regional workforces across the EU’s 272 NUTS level II territories and 42 territories of associated countries in the wake of the international financial and economic crisis (2009) up to 2013 through the use of location quotients (27.5 thousand computations). Bird’s eye views of the findings, in the form of maps, are attached.
Keywords: Territorial sector concentration, location quotient, specialization and localization, regional workforce, EU
JEL classification: R12
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