Spatial analysis of regional income inequality in EU countries

ABSTRACT

This article analyses regional convergence and the diminishing regional disparities within the EU27 from 2000 to 2019. It assesses the impact of income fluctuations on regional inequality by employing secondary analysis of income per capita indicators across NUTS 3 level regions. The article provides a quantitative assessment of regional income inequality, encompassing the most prevalent instruments used in the analysis of inequality data. In particular, it determines EU regional disparities using constructed Theil, Gini and CV indices exposing a more comprehensive evaluation of regional disparities within the EU. It also examines the nexus between spatial effects on regional income inequality. The findings suggest that EU convergence persists at the NUTS 3 level, albeit at a decelerating pace. We also point to the role of clustering effects among neighbouring regions. Notably, the study highlights the diminishing role of regional clustering due to income inequality during the ongoing convergence process.

KEYWORDS:

• Regional inequality
• economic convergence
• spatial autocorrelation
• EU27

JEL Classification:

• O47
• C21
• R11

Disclosure statement

No potential conflict of interest was reported by the author(s).