Abstract
We have aimed to analyse the processes of divergent development of Lithuanian regions by estimating the basic parameters and causes of the process of inter-regional stratification during 1995–2003. We have carried out an estimation of the process of differentiation using region’s GDP, FDI and investment in tangible fixed assets in a separate region. Mydral-Kaldor cumulative causation theory was used to analyse the reasons for uneven development. The situation analysed shows that return from investment in education is bigger in economically stronger regions. Therefore in order to overcome the effect of cumulative causation intervention on the part of government is necessary. Government should finance and promote investment in labour force education. Employees’ low qualification and lack of human capital in a region determine inefficient production and economic loss.
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