Economic Inequalities And The Level of Decentralization In European Countries: Cluster Analysis

• Authors: Šárka Labutková , Pavla Bednářová , Vladimíra Hovorková Valentová

Title variants

Dysproporcje ekonomiczne i skala decentralizacji w krajach europejskich - analiza skupień

• Languages of publication: EN

Abstracts

EN

This submitted article identifies relations between the degree of decentralization and economic imbalances on the basis of a cluster (exploratory) analysis. Two indicators have been chosen for measuring economic inequalities: an indicator of dispersion of regional GDP per capita as representative of the performance imbalances within countries (it measures the economic development gap among regions in European countries); and a multidimensional inequality-adjusted human development index as representative of inequalities in the distribution of wealth in the countries. Decentralization is measured by means of a decentralization index, which contains both quantitative and qualitative components. Although groups of countries characterised by a high degree of decentralization do not necessarily show the lowest degrees of economic imbalances, it is however possible to conclude that the countries in groups with a higher degree of decentralization are among those countries with more favourable values of the economic imbalances indicators monitored. As a part of the research, two clusters of countries were identified which are identical in their degree of decentralization, but differ in the results connected with economic imbalances. The differences are caused by different institutional qualities in the two groups.

PL

W przedstawionym artykule na podstawie analizy skupień danych (metody eksploracyjnej) zidentyfikowano zależności pomiędzy decentralizacją a dysproporcjami w rozwoju ekonomicznym. Do pomiaru dysproporcji ekonomicznych wybrano dwa wskaźniki: wskaźnik regionalnego rozproszenia PKB na mieszkańca, pokazujący dysproporcje w rozwoju gospodarczym (pomiar przepaści ekonomicznej w rozwoju pomiędzy regionami krajów europejskich) oraz wielowymiarowy wskaźnik nierównomiernego rozwoju społecznego, pokazujący dysproporcje jakości życia w badanych krajach. Decentralizację zbadano za pośrednictwem wskaźnika decentralizacji, obejmującego zarówno elementy jakościowe, jak i ilościowe. Chociaż grupy państw charakteryzujących się wysokim stopniem decentralizacji nie wykazują w każdym przypadku najniższego stopnia dysproporcji ekonomicznych, można sformułować wniosek, że kraje zrzeszone w grupach o wyższym stopniu decentralizacji należą do państw o korzystniejszych wartościach badanych wskaźników dysproporcji ekonomicznych. W ramach badań zidentyfikowano dwa skupienia krajów, które są identyczne z punktu widzenia stopnia decentralizacji, ale różnią się pod względem dysproporcji ekonomicznych. Przyczynę stanowi odmienna jakość instytucjonalna w obu grupach.

Keywords

EN

cluster analysis; decentralization; economic development; human development; inequality; regional disparities

PL

analiza klastrowa; decentralizacja; rozwój gospodarczy; rozwój społeczny; nierówność; dysproporcje regionalne; analiza klastrowa; decentralizacja; rozwój gospodarczy; rozwój społeczny; nierówność; dysproporcje regionalne

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Comparative Economic Research. Central and Eastern Europe
• Year: 2016
• Volume: 19
• Issue: 4
• Pages: 27-46

Dates

published

2016-11-30

Contributors

author

Šárka Labutková

• Technical University of Liberec, Faculty of Economics, Department of Economics

author

Pavla Bednářová

author

Vladimíra Hovorková Valentová

• Technical University of Liberec, Faculty of Economics, Department of Economic Statistics

References

• AER (2009), From Subsidiarity to Success: The Impact of Decentralization on Economic Growth, 'Assembly of European Regions'.
• Amable B. (2003), The Diversity of Modern Capitalism, Oxford University Press, Oxford.
• Bednářová P., Laboutková Š. (2014), Decentralization as a Factor Influencing Economic Imbalances in the European Countries, 'Ekonomický časopis/ Journal of Economics', no. 62.
• Bodman P., Hodge A. (2010), What Drives Fiscal Decentralization? Further Assessing the Role of Income, 'Fiscal Studies', no. 31.
• EBRD (2007), Life in Transition Survey I, 'European Bank for Reconstruction and Development', London.
• EC (2011, 2012, 2013), Eurostat Regional Yearbook, [online] http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Europe_in_figures_Eurostat_yearbook (Cited from 25 Apr 2014).
• Esping-Andersen G. (1990), The three worlds of welfare capitalism, Princeton University Press, Princeton.
• Eurostat (2010, 2011), SILC, [online] http://ec.europa.eu/eurostat/tgm/table.do?tab=table&plugin=1&language=en&pcode=tessi190. (Cited from 9 May 2014).
• Eurostat (2013), GDP at regional level, [online] http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/GDP_at_regional_level. (Cited from 20 Apr 2014).
• Ezcurra R., Pascual P. (2007), Spatial Disparities in Productivity in Central and Eastern Europe, 'Eastern European Economics', no. 45.
• Falco E. (2014), Income inequality: nearly 40 per cent of total income goes to people belonging to highest (fifth) quintile, 'Statistics in Focus', no. 12, [online] http://ec.europa.eu/eurostat/statistics-explained/index.php/Income_inequality_statistics. (Cited from 22 Jun 2015).
• Fujita M., Thisse J.F. (2002), Economics of Agglomeration, Cambridge University Press, Cambridge.
• Gil Canaleta C., Pascual P., Rapun M. (2004), Regional Economic Disparities and Decentralisation, 'Urban Studies', no. 41.
• Huther J., Shah A. (2005), A Simple Measure of Good Governance, [in:] A. Shah (ed.) Public Services Delivery, World Bank, Washington, D. C.
• Kaufmann D., Kraay A., Mastruzzi M. (2010), The Worldwide Governance Indicators: Methodology and Analytical Issues. 'World Bank Policy Research Working Paper', no. 5430.
• Kotsogiannis C., Schwager R. (2005), On the Incentives to Experiment in Federations, 'Cesifo Working Paper', no. 1585, [online] http://www.uni-goettingen.de/en/suche.html. (Cited from 10 Oct 2015).
• Krugman P. (1998), What’s New about the New Economic Geography?, 'Oxford Review of Economic Policy', no. 14.
• Laboutková Š. (2009), The Establishment of NGOs as One Growing Part of Developing Interest Groups in the Czech Republic, 'E + M Ekonomie a Management/Economics and Management', no. 12.
• Laboutková Š. (2012), Posilování principu subsidiarity jako jeden z faktorů růstu vlivu regionů v rozhodovacích procesech Evropské Unie [Enforcing the Principles of Subsidiarity by Boosting Local and Regional Authorities Involvement in the EU Decision-making Process.], 'Ekonomický časopis/Journal of Economics', no. 60.
• Letelier L. (2005), Explaining Fiscal Decentralization, 'Public Finance Review', no. 33.
• Milanovic B. (2002), Can we Discern the Effect of Globalization on Income Distribution? Evidence from Household Budget Surveys, 'World Bank Economic Review', no. 19.
• Murthi M., Tiongson E. (2008), Attitudes to Equality: The “Socialist Legacy” Revisited, 'Policy Research Working Paper', World Bank, Washington D. C., no. 4529.
• Panizza U. (1999), On the Determinants of Fiscal Centralization: Theory and Evidence, 'Journal of Public Economics', no. 74.
• Petrakos G. (2001), Patterns of Regional Inequality in Transition Economies, 'European Planning Studies', no. 9.
• Prud´homme R. (1994), On the Dangers of Decentralization, 'Policy Research Working Paper', The World Bank, Washington D. C., no. 1252.
• Rodríguez-Pose A., Ezcurra R. (2009), Does Decentralization Matter for Regional Disparities? A Cross-country Analysis, 'SERC Discussion Paper', no. 25.
• Rodríguez-Pose A., Gill N. (2006), How Does Trade Affect Regional Disparities?, 'World Development', no. 34.
• Řezanková H., Húsek D., Snášel V. (2007), Shluková analýza dat, Professional Publishing, Praha
• Sen A.K. (1973), On Economic Inequality, W. W. Norton, New York.
• Sepulveda C.F., Martinez-Vazquez J. (2011), The Consequences of Fiscal Decentralization on Poverty and Income Equality, 'Environment and Planning. Government and Policy', no. 29.
• Sharma C.K. (2009), Emerging Dimensions of Decentralization Debate in the Age of Globa-lisation, 'Journal of Federal Studies', no. 19.
• Sojka M., Konečný B. (1996), Malá encyklopedie moderní ekonomie, Libri, Praha.
• Stankovičová I., Vojtková M. (2007), Viacrozmerné štatistické metódy s aplikáciami, Iura Edition, Bratislava.
• UNDP United Nations Development Programme (2011, 2012, 2013), Human Development Report, [online] http://hdr.undp.org/en. (Cited from 16 Sep 2015).
• WB (2000), Making Transition Work for Everyone: Poverty and Inequality in Europe and Central Asia, The World Bank, Washington D. C.
• WB (2010), Worldwide Governance Indicators, The World Bank, [online] http://info.worldbank.org/governance/wgi/index.aspx#home. (Cited from 18 Sep 2015).
• Williamson J.G. (1965), Regional Inequality and the Process of National Development: A Description of Patterns, 'Economic Development and Cultural Change', no. 13.
• Zaidi S. (2009), Main Drivers of Income Inequality in Central European and Baltic Countries, 'Policy Research Working Paper', World Bank, Washington D. C., no. 4815.

Identifiers

DOI

10.1515/cer-2016-0028