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



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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Géza Tóth

Hungarian Central Statistical Office, Budapest,


Áron Kincses

Hungary, 1024 Budapest, Keleti Károly út 5-7, Hungary


The use of accessibility potential models is widespread in transport geographical studies. In this analysis the connections between the different accessibility models and development conditions are examined. In connection with the use of the models, the problem arises that, due to their complexity, their interpretation may meet some difficulties. In order to solve this problem, a method which is suitable for breaking down the accessibility potentials into factors has been developed. The study analyses the spatial relation between development and accessibility taking as example the EU NUTS3 regions, the factors of the accessibility potential models are presented and the relations between these factors and the components of development are examined. Finally, the population potential in the NUTS3 regions of EU27 is examined according to the nationality of the dominant region influencing it.

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