Tag: D63

SPATIAL DISPARITIES IN THE EUROPEAN UNION: A MACROSCOPIC REVIEW

Serafeim POLYZOS

Professor, Department of Planning and Regional Development, University of Thessaly, Volos, Greece

spolyzos@uth.gr

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economics and Social Sciences, Agricultural University of Athens, Amfissa (Phocis), Greece

tsiotas@aua.gr

(Corresponding Author)

Abstract

The European Union (EU) is a unique and challenging project aimed at integrating countries with diverse languages, cultures, and histories. While economic cohesion is a key objective, reducing inequalities between Member States and ensuring balanced development for all citizens remains a significant challenge. Despite the progress made, Europe continues to face considerable geographical and economic disparities, impacting living standards, productive capacity, and technological advancement. Analyzing these inequalities, their determinants, and their mitigating policies is crucial for understanding the EU’s challenges. The allocation of EU financial resources and strategic initiatives, such as the Structural Funds, strive to reduce disparities and promote social cohesion, while also tackling emerging issues such as migration and reliance on public expenditure. This article reviews the root causes of inequalities in Europe, the policies designed to mitigate them, and the future obstacles in achieving a more united and socially just European Union.

Keywords: spatial inequalities, European Union’s enlargements, economic indicators, European growth, cohesion.

JEL classification: O18, R11, I38, D63, F15

pp. 13-36

read more

A STOCHASTIC MODEL OF COMPETITION BETWEEN TWO CITIES FOR MEMBERS OF THE CREATIVE CLASS

Amitrajeet A. BATABYAL

Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA

aabgsh@rit.edu

Seung Jick YOO

Graduate School of International Service, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

*Corresponding Author

Abstract

Batabyal and Yoo (2019) have recently obtained a significant result in their analysis of the use of utilitarian and Rawlsian policies by two cities to attract the creative class. They show that if one city switches to a Rawlsian or more egalitarian objective when the other city remains utilitarian, the aggregate economy of two cities becomes less egalitarian. We show that this result depends fundamentally on the assumption that the creative class population can be described by a triangular probability distribution. If this population is modeled instead with an inverted triangular probability distribution then the above result is reversed in the sense that the welfare of the worst-off member of the creative class is always enhanced when one city switches to a Rawlsian or more egalitarian objective, irrespective of the objective of the other city.

Keywords: City, Competition, Creative Class, Rawlsian, Utilitarian

JEL classification: R11, D63
read more

PATTERNS OF SPATIAL DEVELOPMENT: EVIDENCE FROM RUSSIA

Veronika MASLIKHINA

Ph.D. in Economics, Associate Professor of  Department of Management and Law, Volga State University of Technology, Yoshkar-Ola, Russia

Maslikhina_nika@mail.ru

Abstract

The aim of the paper is to analyze the trends of spatial inequality in Russia in 1994-2015 based on the convergence concepts. Russia faced the problem of inter-regional inequality as well as most countries. The situation is aggravated by the external economic and domestic factors in recent years. The fall in energy prices and Western sanctions had a negative impact on the country’s economic development. Russia is compelled to take into account geopolitical interests in the implementation regional policies in some regions (the Far East, the Crimea, the Kaliningrad region, the republics of the North Caucasus, the Arctic). Many regional budgets have budget deficit, highly debt load. They optimize spending on the social sphere and reduce investments in the real economy. Russia is emerging from the crisis despite the difficult situation. A review of the theoretical positions of the four types of convergence concepts (σ-, β-, γ-, ρ-convergence) was made. The spatial inequality evaluation was carried out on the basis of σ-convergence and absolute β-convergence concepts. The Williamson coefficient, the Hoover index, the Theil index and the Atkinson index were used to analyze spatial inequality based on the σ-concept. Differentiation has increased over the analyzed period, but gap decreased after 2005. The  convergence speed  is 1.79% in Russia. Regions with a low initial level of development have higher growth rates than regions with a higher initial level of development

Keywords: spatial inequality, spatial development, β-convergence, σ-convergence, Russia

JEL classification: D63, O52, R1, R58
read more