https://orcid.org/0000-0002-3963-3943
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ABSTRACT
Our paper contributes to the literature on modern economy financialisation and relies on national and regional data on wages and employment distribution in the F&I and Industry sectors in Central and Eastern European (CEE) countries. We evaluate the effects of financialisation in this part of Europe, focusing on different levels of aggregation. By focusing on NUTS-2 and NUTS-3 regions, we extend the analytical strand beyond the national level and fill the gap in regional research on financialisation. Central and Eastern Europe is a beneficiary of the financialisation process and the transfer of financial services from the West to the East. This process changes social, economic, and political relationships in both parts of Europe. In CEE countries, financialisation has resulted in two types of positive aggregate effects: job creation in the financial sector and the increase of wages, which close the pay gap between Old and New EU. However, these processes at the regional level led to higher regional disparities. We then examine the disparities between regions with the highest concentration of F&I, so-called ‘global cities’, and other regions. This process of spatial segregation is the most striking phenomenon of financialisation in CEE countries.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1. The two-sided Kolmogorov–Smirnov test statistic was equal to 0.375.
2. Throughout this paper, we have used the Eurostat data on the compensation of employees by NUTS-2 regions [nama_10r_2coe].
3. The estimated coefficients were highly statistically significant. After expressing the left-hand variable in natural logarithm terms, the obtained R-squared and BIC were equal to 0.392 and −34.340, respectively.
4. In order to perform the simulations, we have employed the ordinal logit. The left-hand variable depicted decrease (−1), no changes (0), or increase (1) in employment in F&I.