Tag: O18

DEVELOPMENT TRAPS IN SMALL EU ECONOMIES: INSIGHTS FROM CROATIA’S LOCAL TRAJECTORIES

Vinko MUŠTRA

Full professor, Faculty of Economics, Business and Tourism, University of Split, Croatia

vmustra@efstr.hr

Abstract

This paper examines the long-term dynamics of local development traps in Croatia, a small and open EU economy that experienced profound structural shocks between 2006 and 2022, including the global financial crisis and the COVID-19 pandemic and EU accession in 2013. The concept of the development trap has recently gained prominence in the literature, identifying territories that struggle to sustain economic dynamism relative to national and European peers (Iammarino et al., 2020; Diemer et al., 2022; Rodríguez-Pose et al., 2024). While previous research has highlighted the structural and institutional underpinnings of such traps, less attention has been devoted to the different development paths of local sub-national unites in small and open economies. Using a unique dataset covering all 556 Croatian municipalities and towns for 4 three-year periods from 2006 till 2022., this study applies a standardized, multi-period framework to identify two forms of development traps: (1) a stable trap reflecting persistent positioning within the same income decile (DT1) and (2) a downward trajectory trap marked by monotonic decline in standardized income (DT2). A key finding is that development traps vary heterogeneously even within the same county-level units, underscoring the importance of fine-grained territorial perspective. The results also reveal strong path dependence substantial spatial rigidity and pronounced territorial polarization between coastal and continental areas. DT1 and DT2 are not evenly distributed, suggesting differentiated structural vulnerabilities across counties. By providing new evidence from a small EU economy like Croatia, the paper offers a nuanced operationalization of development traps and highlights the need for targeted, place-sensitive policies aimed at reversing entrenched disparities and preventing further territorial divergence.

Keywords: Local development traps, Income dynamics, path dependence, spatial disparities, Croatia

JEL classification: R11, R12, O18,

pp. 79-92

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MARGINALISED ZONES AS STATISTICAL INSTRUMENTS TO NAVIGATE PERMACRISIS IMPACTS IN EUROPEAN REGIONS

Cristina LINCARU

PhD, FeRSA, Department of Labour Market, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania

cristina.lincaru@yahoo.de

ORCID ID: 0000-0001-6596-1820

Gabriela TUDOSE

PhD, Senior Researcher, II-nd degree, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania

gabriela_tudose@yahoo.com

ORCID ID: 0000-0002-340-9987

Adriana GRIGORESCU

PhD Full Professor, SNSPA; Director of Global Economy & Governance Interdisciplinary Research Platform; AOSR; INCE; LEAD Cambridge, MA; UCLM Spain

adrianagrigorescu11@gmail.com

ORCID ID: 0000-0003-4212-6974

Speranța PÎRCIOG

PhD, Scientific Director, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania

pirciog@incsmps.ro

ORCID ID: 0000-0003-0215-038X

Cristina STROE

Senior Researcher II-nd degree, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania

cristina.radu@incsmps.ro

ORCID ID: 0000-0001-8384-6084

Abstract

In the context of overlapping and interrelated crises—economic, ecological, social, and geopolitical—European regions are confronted with new governance challenges. Marginalised zones, often treated as residual spaces in policy discourse, must be reimagined as analytical and governance instruments in the transition toward sustainability and territorial resilience. This article explores how marginalised areas can be conceptualised and operationalised through spatial statistical methodologies and policy frameworks that support just transition processes. Drawing on a critical review of empirical studies and strategic European and Romanian documents, we synthesise the main tools used to identify territorial disparities, such as Principal Component Analysis (PCA), clustering algorithms, fuzzy logic, spatial econometrics, and machine learning. We confirm that these methods allow for more nuanced territorial diagnostics and typologies, which are essential for evidence-based and place-based policies. The article advances a transdisciplinary framework that repositions marginalised zones as strategic levers in adaptive territorial governance. Ultimately, we argue for a paradigm shift: from periphery to policy, where marginalised regions evolve from passive recipients of aid to active instruments of just transition.

Keywords: Marginalised regions, Just transition, Spatial inequality, Territorial resilience, Governance instruments, PCA, Clustering, Fuzzy logic, Regional typologies, Permacrisis

JEL classification: R11, R58, O18, Q56, C38

pp.155-165

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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

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