Abstract
This research explores the substantial growth in regional inequality within Lithuania in the post-socialist era. A few regions, especially the capital city and its environs, have been able to attract substantial foreign investment, bolstering wages and employment and easing the move to a market-based economy. Isolated rural areas with few opportunities for formal or informal sector employment or even commercial farming have suffered the most, while smaller industrial cities with collapsing employment in manufacturing are in an intermediate position. The paper uses descriptive statistics as well as ordinary least squares and fixed-effects panel regressions to examine this issue.
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