Interregional Inequality Research Articles

EU Cohesion Policies and interregional inequalities in disruptive times

Despite the numerous contributions assessing the efficiency and effectiveness of Cohesion Policies, their role in stimulating growth and cohesion in different macroeconomic settings and in different business cycle periods remains highly debated. This article aims at contributing to this literature by investigating the link between Cohesion Policy, economic growth and interregional inequalities over periods of crisis and recovery. In particular, the article analyses whether Cohesion Policy is beneficial for the recovery of those regions mostly hit by the crisis and contributes to narrowing interregional gaps enhanced by the crisis. In addition, the paper analyses how the link between Cohesion Policy and interregional inequalities changes by investment axes, as it is the case of Research, Technology Development and Innovation funds, targeted to different goals. Based on an analysis covering all EU27 and UK NUTS2 regions in the period 2008–2019, the article confirms the multifaceted nexus between Cohesion Policy and interregional inequalities. It also raises warnings about the potential conflicts between its overarching goals and its multiple and expanding strategic objectives.

The North-South problem: on the possibilities of comparing interregional inequalities in Italy and Russia

The article examines the possibilities and scientific prospects of comparative studies of interregional differences and inequalities in Russia and Italy. These countries, located at a considerable distance, belonging to different geographical zones, cultural environments and civilisational areas, differ significantly in their global status. Despite the self-evident nature of these differences, they have long been perceived in both the Russian and Italian research traditions as countries subject to comparison. They act for each other - and to a large extent because of the same differences - as a conceptual resource, an element of the external environment and external surroundings, a source and factor of development. This comparability has its regional dimension. It extends to the field of research on interregional inequalities and contradictions, examining the dialectic of "center - regions" and forming a special comparative direction in terms of research methodology. This study is an excursion into the field of historical, sociological and political regional studies. The author evaluates the achievements and results obtained by domestic and Italian authors, as well as the prospects for scientific developments in this area. Interregional inequalities, inevitable for Italy, which was among the countries that "came second", given their relatively late introduction to the technogenic civilisation, have acquired the meaning and significance of a national problem. Almost from the moment of the emergence of a single Italian state, it has been known as the southern question. The North-South dichotomy in Italy is the embodiment of regional differences, disproportions, and contradictions. It reflected the conflict between the unification of traditionalist social structures and the need to preserve their diversity. This dichotomy remarkably seemed to anticipate the formula of the same name of modern times, which denotes the division and split of the modern global world into rich northern and poor southern countries. In conceptual schemes of variability, that is, on the one hand, unity and similarity, and on the other, differences between Russia and Italy, including in the field of comparative regional studies, contrasting comparisons, which were more or less rightfully attributed a constant character, have long prevailed. This established picture of variability has undergone significant modifications in the process of erosion of political subcultures of both the left and right persuasion, secularisation and rationalisation of public consciousness. The author concludes that the example of Italy shows how archaic social practices can be combined with modern technologies, and this can give rise to very bizarre social collisions.

Inequality of rural residents’ income in China since the targeted poverty alleviation strategy: New trends, causes, and policy implications

Poverty and income inequality are problems faced by many countries including China. Since the implementation of Targeted Poverty Alleviation (TPA), absolute poverty has been eradicated, meanwhile, Chinese rural residents' income and inequality have experienced unprecedented new dynamics, but still, very few studies have focused on them. Hence, we attempt to examine the new trends in Chinese farmers' income inequality and to understand its causes during this period. We observe that China's urban-rural income ratio has been shrinking and the urban-rural inequality has been decreasing from 2014 to 2021. The reduction in the Theil index indicates a decrease in the regional inequality of farmers' income as well, and the decline in inter-regional inequality among eight economic zones contributes about 80% to increased equality. These new trends are caused by the fact that, with the TPA, the incomes of rural residents especially that in destitute areas, grew faster than that of urban residents and farmers in prosperous areas. The higher share of non-agricultural industry and agricultural mechanization level have significant positive impact on regional equality of farmers' income, while urban-rural dual structure has significant negative inhibitory effects. The lowest farmers' income and the highest inequality in the Northwest, and the slowest growth in the Northeast deserve more attention in rural Revitalization. From these findings, we propose four policy implications that would be applied to improve Chinese farmers' income equality, govern relative poverty, and achieve common prosperity in the post-poverty era.

Levelling-up economics

Abstract This commentary argues that our awareness of the nature and scale of UK interregional inequalities has only lately begun to develop in a manner which is appropriate, given the scale of the challenge. The UK economics profession across government, business and academia has been slow to understand the gravity of the issue, in comparison to many other OECD countries. Indeed, this intellectual failure reflects a more fundamental failure on the part of the whole UK institutional and governance system, which has evolved, largely for historical and political reasons, into a form that is entirely inappropriate and ineffective for addressing these issues. The problem now is that reforming the system via devolution-related reforms is far more difficult than it otherwise might have been if these issues had been addressed decades earlier, as has been the case in other OECD countries.

International knowledge connectivity and the increasing concentration of innovation in major global cities

Abstract We argue that trans-local knowledge connections positively impact local epistemic inventor communities in global cities, using patent citations as an indicator of global knowledge connectivity. Patented inventions have become more concentrated in the most internationally connected global cities, increasing inter-regional inequality. We identify two dimensions of knowledge connectivity: the compatibility of connections between similar profiles of technological knowledge, and the geographical diversity of knowledge connections between differently specialized global cities. We suggest that interaction between local and international inventor epistemic communities is now a vital driver of local innovation in global cities, and interregional inequality between these and other cities.

Factors Determining Private Agricultural Investment: A Comparative Case Study of Two States of India

The study endeavours to examine the pattern and determinants of agricultural investment in two states of India viz., Haryana and Odisha. The existing literature points out that public investment in agriculture is one among the strongest determinants of private investment and output in agriculture. Accordingly, emphasis has been laid to accelerate the rate of public investment. The present study using primary data in two diverse regions of India is an attempt in that direction. Data from 150 households from both states have been collected using proportionate stratified random sampling method. The study finds that private farm investment as well as output are relatively lower in Odisha, being an agriculturally lagged region. It is further seen that private investment in agriculture has been significantly influenced by canal irrigation, institutional credit, and land size in Odisha. While in Haryana, farmer’s education, land size and institutional credit positively and significantly affected private farm investment. Capital use in agriculture turned out to be positive and significant variables influencing agricultural productivity in both regions. The study thus recommends to ensure public policies on the aspects of irrigation infrastructure, research and extension, improvement rural infrastructure etc. in stimulating private investment and agricultural output. Public investment in agriculture on these components would bridge inter-regional inequalities and ensure inclusiveness as it promotes employment opportunities and sustainable growth in agriculture. In the context of Odisha, being a poorer state, these policies could serve as important tools of poverty alleviation.

Legal Foundations and Inequities in Indonesian Autonomy

This study examines the effectiveness of Indonesia's regional autonomy laws—Law Number 22 of 1999, Law Number 32 of 2004, Law Number 23 of 2014, and Law Number 5 of 2014—highlighting the challenges of inter-regional inequality, conflicts of interest, and resource limitations. Employing qualitative analysis of legal documents and secondary data, the research identifies critical gaps in the legislation that hinder equitable development across regions. It proposes legal reforms to strengthen the governance system, aiming to enhance fairness and effectiveness in regional autonomy, thereby ensuring a more balanced national development.
 Highlights:
 
 Legal Gaps: Current laws insufficiently address inter-regional inequalities and conflicts.
 Reform Necessity: Legal reforms are crucial for effective resource distribution and conflict management.
 National Impact: Improved laws can enhance national unity and regional governance.
 
 Keywords: Regional Autonomy, Legal Analysis, Inequality, Conflict Resolution, Policy Reform

The nexus of climate policy uncertainty, renewable energy and energy inequality under income disparities

This study has made a significant contribution to the literature on energy inequality by utilizing an economic-environmental framework to investigate this phenomenon across different income groups of countries worldwide. The study employed the Theil index to calculate intra-regional and inter-regional energy inequality among high-income, upper-middle-income, and lower-middle-income countries during the period 2001–2020. The study further examined the impact of key economic and environmental factors, including climate policy uncertainty (CPU), renewable energy consumption (RE), financial development (FD), income, and urbanization (UR), on energy inequality using a Two-Stage Least Square Method (2SLS) model. The findings indicated a negative impact of CPU, FD, and income on energy inequality, while UR was found to exacerbate energy inequality. RE was found to reduce intra-regional inequality in high-income and upper-middle-income countries, but it was found to worsen inter-regional inequality. These findings highlight the importance of addressing key economic and environmental factors to achieve equitable distribution of energy consumption and access to energy services.

Роль губернаторского корпуса в механизмах снижения социально-экономической дифференциации регионов

Improving theoretical approaches to determining the causes of socio-economic differentiation of Russian regions remains today one of the pressing topics in domestic regional studies. Disproportions in the main economic indicators of regions sometimes reach double-digit values, and progress in eliminating interregional inequalities is not visible. The reasons for the socio-economic gap between regions are complex, primarily due to competitive advantages associated with geographical location and the provision of natural resources. However, regional inequality is also influenced by subjective factors, including the quality of management of territorial development. The article examines the influence of the rotation of the governor's corps on the differentiation of the regions of the Central Federal District.

Unbalanced Industrialisation and Geographic Peculiarities: A Study of India?

The inter-regional disparity in economic indicators in India has increased by a considerable amount over the years. The current study is an attempt to highlight the inter-state industrialisation disparities in India. The study, based on the theoretic exposition of new economic geography, argues that the initial geographical (historical) advantage to the southern part of India has locked in industrial activities in that region (core), depriving the northern (periphery) regions of the similar benefits. Based on the Annual Survey of Industries data, the study validates that the southern regions are geographically advantageous in India and are better industrialised than the geographically disadvantaged northern regions. The study points towards the negligence of the union government in acknowledging and intervening into the industrialisation and developmental divides rampant in the latter regions. The study concludes by laying grounds open for the furtherance in the recognition of economic geography as one of the fundamental determinants of inter-regional inequalities across India, demanding immediate policy attention. JEL Codes: J61, O14

Regional diversification and intra-regional wage inequality in the Netherlands

ABSTRACT The literature has shown that related diversification in more complex industries enhances economic growth in regions but also inter-regional inequality. However, it has drawn little attention to the relationship between industrial dynamics (i.e., the rise and fall of industries) and intra-regional wage inequality. This explorative study examines the relationship between industry dynamics and wage inequality in NUTS-3 regions in the Netherlands in the period 2010–2019. Our study shows that related diversification in less complex industries tends to reduce wage inequality within a region. This implies it remains a policy challenge to combine smart and inclusive growth in regions. Our study also showed that there is no significant relationship between the exit of industries and regional inequality, with one exception: unrelated low-complex exits tend to increase intra-regional wage inequality. Overall, these findings suggest that related diversification in less complex industries tends to bring benefits in terms of inclusive growth, while unrelated exits in less complex industries tend to do the opposite.

The nature, causes, and consequences of inter-regional inequality

Abstract Social scientists and policymakers alike have become increasingly concerned with understanding the nature, causes, and consequences of inter-regional inequality in economic living conditions. Contemporary spatial inequality is multi-faceted—it varies depending on how we define inequality, the scale at which it is measured, and which groups in the labor force are considered. Increasing economic inequality has important implications for broader social and political issues. Notably, it is difficult to account for the rise of far-right populism in industrialized countries without considering the context of growing inter-regional inequality. Important explanations for the rise in inter-regional inequality include changing patterns of worker and firm sorting processes across space, major transitions like the reorientation of the economy from manufacturing to digital technologies, and increasing global economic integration, as well as policy. Different causal explanations in turn imply a different role for place-based policy. This article introduces the context of the special issue on the nature, causes, and consequences of inter-regional inequality, focusing specifically on inequality in North America and Western Europe, and aims to identify challenges for, and spark further research on, inter-regional inequality.

Influence of capital allocation on interregional inequality of public services: differentiated evidence of investment by the government and market in China

ABSTRACT Interregional inequality of public services is accompanied by their combined supply by government and market. This study investigates whether the spatial allocation of regional investment influences inequality and explores the differentiated source of such influence, distinguishing between government investment and private investment in China. Results suggest that the interregional inequality of public services is spatialised by the distorted spatial allocation of investment, which manifests itself as capital market segmentation, and it is aggravated by government investment but relieved by private investment. Such effects derive from differences in local protectionism, interregional competition and capital flow between government investment and private investment.

The Sino-US trade friction would exacerbate global inequalities in achieving SDGs

Trade has given rise to global inequalities in sustainable development, while the occurrence of trade frictions between China and the US has led to changes in the global trade market landscape. Whether these changes will exacerbate disparities in sustainable development between regions remains uncertain. Quantifying the impact of changes in the trade market landscape is of significant importance in accelerating global progress towards sustainable development. Therefore, this article, based on the GTAP 10.0 database and using the GTAP model, calculates the extent to which changes in tax policies affect the global achievement of sustainable development goals (SDGs) by assessing the impact of alterations in trade patterns. The research findings are as follows: (1) The decoupling of China and the US has intensified these inequalities. Economically advanced regions have made significant progress in sustainable development compared to relatively underdeveloped regions, such as the US and Sub-Saharan Africa. (2) Regions closer to China and the US are more affected by changes in trade taxes, with economically advanced regions in close proximity to China and the US benefiting more than those farther away. (3) Environmental aspects of SDGs have shown the lowest growth rates, with marginal variations across different regions. (4) Global inequalities in achieving SDGs primarily stem from inter-regional disparities. Over time, inter-regional inequalities decrease while intra-regional inequalities increase, with underdeveloped regions experiencing higher levels of intra-regional inequality compared to developed regions. The growth in tax rates between China and the US contributes to a comprehensive increase in both inter-regional and intra-regional inequalities. Based on these conclusions, this study aims to provide a scientific basis for promoting global sustainable development and reducing regional disparities in the process.

ANALISIS DAMPAK COVID-19 TERHADAP PERTUMBUHAN EKONOMI REGIONAL JAWA TIMUR

The COVID-19 pandemic has caused the economic growth of East Java to contract. However, not all regions in East Java have experienced a deep contraction. This study aims to estimate the magnitude of the impact of COVID-19 on the regional economic growth of East Java and analyze the impact of COVID-19 on regional growth based on its economic base. This study utilizes the convergence model developed by Barro & Sala-i-Martin, and scatter plot analysis. The results indicate that COVID-19 has caused a contraction in the regional economic growth of East Java through a decrease in sectoral influence. The sector most affected is the mining sector. As a result, spatially, mining areas tend to experience severe contractions, while agricultural areas, which are known for their low prosperity, only experience mild contractions. This condition has contributed to a decrease in the coefficient of interregional inequality in East Java during the pandemic. Considering the importance of the industrial sector in accelerating the resilience of economic growth, an alternative development approach that can be pursued is through the development of agro-industries.

Межрегиональное неравенство в России и постсоветских странах в XXI веке

The article analyzes the level and dynamics of interregional inequality in Russia, Kazakhstan, Uzbekistan, Belarus and some European countries (in terms of NUTS-2 territorial units) according to available data from official statistics of the CIS countries (1995–2022) and Eurostat (2011–2022). The Gini coefficient, weighted by population and normalized depending on the number of territorial units, was used as the main evaluation parameter. The lower level and stability of interregional inequality in the countries of the European Union and Belarus are associated with a high and more uniform development of the territory and a more stable economic structure. In large post-Soviet countries, the dynamics of interregional inequality are multidirectional; there is no stable trend, which is associated with resource and capital rent in a limited range of regions. In Russia and Uzbekistan since the late 2010s. inequality grew, decreased in Kazakhstan, and was small and stable in Belarus due to the peculiarities of the economic structure and institutional factors of development. Assessments of the influence of the macroeconomic factor on interregional inequality did not provide obvious confirmation of its impact. The impact of the state’s redistribution policy can only be assessed for Russia: it was more noticeable during the crises of 2009 and 2020. Within Russian federal districts, differentiation is lower. High inequality is typical for the extremely heterogeneous Ural Federal District and the Central Federal District, where it has been declining in recent years. In the Far Eastern Federal District, regional differentiation grew, and its gradual increase also occurred in the regions of the Northwestern Federal District.

Пространственное измерение долгосрочного роста российской экономики

Russia's vast expanse creates not only additional costs, but also economic and strategic benefits for Russia's development. Their implementation involves reducing excessive interregional inequality and creating a development management system at the level of macro-regions and ensuring the complexity of spatial policy as a unity of the distribution of productive forces, effective Nature conservation and the use of natural resources, saving the people and improving the quality of the urban and rural environment.

Industrial Investments and Indicators of Van in the Planned Development Period (1960-1980)

Following the coup d'état on May 27, 1960, in Turkey, the subsequent regime devised a strategy to 
 facilitate socioeconomic progress, known as the planned development model, which had already been 
 implemented globally. In this respect, the State Planning Organization (SPO) was established to plan and execute the four five-year development plans prepared during 1960–1980. Basic principles such as import substitution, industrialization, socioeconomic development, and the elimination of inter-regional development disparities were included in the plans. The SPO sought to identify underdeveloped areas using socioeconomic-level determination research to address interregional inequality. These areas, including Van, were designated as Priority Development Areas (PDAs) and provided additional public support. In this period, there was a notable emphasis on industrialization to attain expeditious economic growth, thereby establishing it as the principal instrument. Significant industrial investments were undertaken by the public and private sectors, exerting a decisive influence on the spatial distribution of development. Public support was critical to socioeconomic development in cities like Van, where the private sector needed strengthening. This study employs quantitative data from the research mentioned earlier by SPO to analyze Van in terms of provincial public industrial investments and relevant indicators.

The role of time and space in the identification of left behind regions: a case study of Denmark

Abstract This paper provides an overview of the state of identification of left behind regions and proposes a new methodology for identifying them. Despite increased interest in rising regional inequality, the identification of left behind regions differs greatly, complicating policymaking aimed at addressing these regional challenges. Based on the substantial literature that has emerged in recent years on left behind regions, the paper argues for the importance of both time and space as key elements when identifying left behind regions. This paper applies the proposed identification method to Denmark; it uses longitudinal data from 1980 to 2018 and includes the current wave of interregional inequality and typically adopted variables for identifying left behind regions across the literature.

Неравенство показателей качества жизни населения в регионах Приволжского федерального округа

The high degree of interregional inequality in indicators of socio-economic development, including the quality of life of the population, is an urgent problem of spatial development of the Russian Federation. The article is devoted to assessing the inequality of indicators of the quality of life of the population in the regions of the Volga Federal District. The study is based on indicators characterizing the labor market and the quality of employment, income of the population, housing conditions, including the improvement of the housing stock, as well as the provision of social infrastructure facilities. The analysis was carried out on the basis of official statistics and subjective estimates of the population. As a result of the study, it was revealed that subjective estimates of the population indicate higher income inequality than the indicators of official statistics (monetary income, poverty level, etc.).