Assessment of Baltics states regional Economic disparities according to GDP
DOI:
https://doi.org/10.15549/jeecar.v11i5.1650Keywords:
Baltic States, cohesion, regional disparities, convergence, divergence, cohesion index, GDPAbstract
Analysis of the challenges of cohesion at the country and regional levels becomes especially relevant due to EU expansion, the Great Recession, and uneven economic recovery after that. Recent global events, such as the COVID-19 pandemic and imposed lockdowns, have further intensified interest in this issue. This study aims to evaluate the disparities in the development of Baltic States' regions using the author's proposed methodology for calculating an aggregate cohesion index. Some important conclusions can be made from the data analysis. A common trend across all countries was the notable economic strength of capital regions, with GDP per capita significantly exceeding national averages. Despite the pandemic's limited impact in 2020, a clear divergence trend emerged in 2021. Additionally, the club convergence between less developed regions was observed, especially in Lithuania and Latvia. In addition, Lithuania uniquely exhibited three distinct groups of regions based on economic development, in comparison with only two groups in Estonia and Latvia.
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