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GROWTH DISPARITIES AMONG REGIONS OF THE VISEGRAD GROUP COUNTRIES: AN EVIDENCE OF THEIR EXTENT AND NATURE

Zdražil, Pavel

Abstract

The deepening of regional disparities is an issue of increasing importance that has been systematically emphasized in the EU policy, especially since the process of “Eastern Integration” has started. The paper focuses on the Visegrad Group countries whose regions are less developed in the EU context. The aim of the research is to assess the development of disparities in regional economic performance of the Visegrad Group countries, to identify how the factors of economic growth determine these disparities, and partly to assess whether the integration of the Visegrad Group countries into the EU infl uenced the development of regional disparities in these countries. For the analysis of disparities during 2000–2013 we selected an approach of measuring real convergence (sigma-convergence). Disparities were measured in the context of a breakdown of the GDP per capita into sub-components, refl ecting on the development of disparities in productivity and employment. The results show that, although regions of the Visegrad Group countries converged towards the EU average and also in terms of the Visegrad Group as a whole, regional disparities within countries rather increased. This led to a paradox where, although the objective of reducing regional disparities across the EU was satisfi ed, from a national perspective disparities increased. The Labour productivity factor, with its dominant yet steadily growing contribution, is the main determinant of disparities in the performance of the Visegrad Group regions. Other sources of disparities are characterized by a stable development or convergence. Only Polish regions deviated from the general conclusions, since the extent of disparities among them grew constantly, and the nature of disparities was the Labour participation rate. In terms of the impact caused by accession into the EU, the measured changes were rather minor and the identifi ed trends had mostly been in place before the Visegrad Group countries entered the EU.

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37 2, XIX, 2016 Economics DOI: 10.15240/ ul/001/2016-2-003 In oduc ion Une en egional de elopmen is gene ally unde s ood as a p oblem o g owing impo ance. Leade s o he Eu opean Union (EU) aim o ac i ely add ess his issue, which can be mani es ed, o example, by he ac ha one o he pi o al long- e m and ongoing goals o EU egional policy is o comba egional dispa i ies, which is di ec ly based on A icle 174 o he consolida ed T ea y on he Func ioning o he Eu opean Union (EU, 2010). In 2004 he EU ex ended eas wa ds, which u he enhanced he impo ance o EU egional policy. Regions o he newly in eg a ed and ans o med o me Eas e n bloc coun ies had been less de eloped when compa ed o he exis ing EU 15 egions (wi h he excep ion o he capi al ci y egions o B a isla a, Budapes and P ague). In e ms o GDP pe capi a, as an indica o o economic pe o mance, many o hem ha e been on he same le el as he leas de eloped egions ac oss he EU (Applo á, 2014; Eu os a , 2015). These egions ha e no only become eligible ecipien s o unding om he Eu opean s uc u al unds and om he Cohesion und, bu also he de ac o pla o m o e iewing he e ec i eness o edis ibu ion mechanisms in e ms o ul i lling he objec i es o cohesion policy and pa ly also he e i ciency o he en i e Eu opean in eg a ion p ojec . This ac has been documen ed by nume ous ecen s udies ha ha e ocused on he p og ess o less de eloped coun ies and egions, as well as hei inclusion in he EU (Dob insky & Ha lik, 2014; Cua esma, Obe ho e , & Vincele e, 2014; Fo gó & Je čák, 2015; Zd ažil, 2014). This pape ocuses on he Viseg ad G oup coun ies ( he Czech Republic, Hunga y, Poland, and Slo akia) ha belong among he ans o med economies o he o me Eas e n Bloc and whose egions can be gene ally ega ded as less de eloped when compa ed wi h he egions o he adi ional EU coun ies (EU 15). The aim o his pape is o assess he de elopmen o dispa i ies in he economic pe o mance among egions o he Viseg ad G oup coun ies, o iden i y he way in which economic g ow h ac o s de e mine hese dispa i ies, and pa ly o assess whe he he in eg a ion o Viseg ad G oup coun ies in o he Eu opean Union has a ec ed he de elopmen o egional dispa i ies in hese coun ies. 1. A B ie Re iew o Li e a u e O cou se, he economic heo y says ha he e ec s o economic in eg a ion a e e y ambiguous (Baldwin & Wyplosz, 2006; Jo ano ich, 2005; K ugman & Venables, 1990). Howe e , mos au ho s do ag ee ha he libe aliza ion o he economic en i onmen , in connec ion wi h in eg a ion, does a leas de elop he ma ke , and inc ease p essu e o achie e e i ciency and highe li ing s anda ds. Thanks o his i can gene ally be ega ded as a bene i cial phenomenon (Balassa, 1961; Fá ek & K a , 2006; Machlup, 1977). Acco ding o some s udies he e ec s esul ing om his in eg a ion a e so unequi ocally posi i e o he pa icipa ing egions ha he ac is indispu able (Olo sdo e & To s ensson, 1998). On he basis o he s anda d neoclassical model (Solow, 1956; Solow, 1957) and economic in eg a ion heo y (Balassa, 1961), ela i ely less de eloped coun ies joining mo e ad anced communi y should esul in he accele a ion o he less de eloped coun ies‘ g ow h and hus hei con e gence wi h he mo e de eloped coun ies. The a gumen in a ou o con e gence has been de i ed om neoclassical assump ions, s a ing ha he libe aliza ion o ade and mobili y o p oduc ion ac o s assumes ha he balancing mechanism o p ice le els and income, o he con e gence o (na ional o egional) economies will be GROWTH DISPARITIES AMONG REGIONS OF THE VISEGRAD GROUP COUNTRIES: AN EVIDENCE OF THEIR EXTENT AND NATURE Pa el Zd ažil, Pe a Applo á EM_2_2016.indd 37EM_2_2016.indd 37 3.6.2016 11:47:453.6.2016 11:47:45 38 2016, XIX, 2 Ekonomie ac i a ed (Ma ín Velázquez & Funck, 2001), bo h o in e ms o nominal and eal con e gence. I is he e o e essen ially a classic con e gence hypo hesis, on he basis o which no ional g ouping (con e gence clubs) a ise among egions, wi hin which he e is a signi i can con e gence achie ed in e ms o p oduc i i y, and wi h ha li ing s anda ds (Baumol, Nelson, & Wol , 1994). One can he e o e expec ha he in eg a ion o less de eloped coun ies in o he EU should be bene i cial o hese coun ies and hei egions as i o e s he po en ial o accele a e g ow h and o c ea e posi i e condi ions o hei de elopmen (Capello, 2007), based no only on heo e ical p inciples, bu also h ough in e en ions in he o m o edis ibu ion mechanism wi hin egional policy. On he o he hand i mus be said ha economic in eg a ion can be accompanied by some eally nega i e ac o s, especially when i in ol es ela i ely less de eloped egions. Mos no ably hese include he so-called “b ain-d ain” in less de eloped egions (Lucas, 1988), sec o concen a ion ha can lead o a p oli e a ion o monopolis ic and oligopolis ic s uc u es (Pe oux, 1969), o a gumen s a ising om he New economic geog aphy – especially spa ial concen a ion, which leads o signi i can dispa i ies (K ugman, 1991; O a iano & Puga, 1998; Fuji a & K ugman, 2004). The e is la ge li e a u e on g ow h p ocesses and wi h he hea y ocus on dispa i y issue ac oss he Eu opean s a es. In his pape we ollow especially he li e a u e whe e he Viseg ad G oup s a es ha e been examined. We ollow bo h he classical s udies (Ga dine , Ma in, & Tyle , 2004; Ba o & Sala-i-Ma in, 2004; A ms ong, 1995; Ben- Da id, 1999; S igli z, 1999; Fische , Sahay, & Vegh, 1998) and he ecen s udies (Mon o , 2008; Dob insky & Ha lik, 2014; Cua esma e al, 2014; T doň, Tuleja, & Ve ne , 2012; Ma zino o, 2012; Fo gó & Je čák, 2015; Zd ažil & K a o á 2012; Cua esma, Obe ho e , Smi s & Vincele e, 2012; Vin o á & Žďá ek, 2007; Geppe , Happich & S ephan, 2008; T doň, 2010; Ba ca, 2009). The li e a u e p o ides mixed esul s on he s udy o g ow h dispa i ies – hei ex en and na u e; based on di e en app oaches and i s main objec i es. The key poin s and conclusions o he abo e-men ioned s udies a e discussed in he ollowing ex . 2. Me hodological De i ni ion o he Resea ch As a e e ence poin o he analysis we chose egions a he NUTS II le el, since NUTS II is he de aul le el a which EU egional policy is implemen ed (Eu opean Commission, 2015). Wi hin he Viseg ad G oup coun ies we a e he e o e wo king wi h a sample o 35 NUTS II egions, 8 o which a e Czech, 7 Hunga ian, 16 Polish, and 4 Slo ak. The de elopmen o dispa i ies is iewed in e ms o he con en ional concep o acking coe i cien o a ia ion ac oss he moni o ed sample o egions (1); he e o e, i is a s anda d way o measu ing he eal dispa i ies h ough σ-con e gence (sigma- con e gence) (Ba o & Sala-i-Ma in, 2004; Quah, 1996). , (1) whe e coe i cien o a ia ion (CV) is de i ned as he a io o s anda d de ia ion (σ) o he mean (μ). As he main indica o o he de elopmen o economic dispa i ies we chose g oss domes ic p oduc pe capi a (GDP pe capi a), which is, being a measu e o economic ac i i y, a key indica o o changes in economic pe o mance (O ganisa ion o Economic Co-ope a ion and De elopmen [OECD], 2015b). Pe o mance o economy, i.e. he economic g ow h, belongs o he main issues o economic heo y and p ac ice, and i is sys ema ically emphasized by na ional go e nmen s as well as he EU s a egies o de elopmen (K a o á, Ma ěja, & P ášilo á, 2011). D awing on he neo- classical g ow h model (Solow, 1956; Solow, 1957) we conside ha economic g ow h is, in all i s o ms, de i ed om a pai o elemen a y ac o s o p oduc ion – capi al and labou – and om he le el o echnology. In his s udy we ocus mainly on he labou ac o and he impac o i s changes on he de elopmen o egional dispa i ies. We ha e eso ed o his pa ially es ic ing s ep because o a lack o a ailable da a ha would ha e allowed us o explo e in mo e de ail, a a egional le el o he Viseg ad G oup coun ies, he e ec o changes esul ing om he de elopmen o capi al and i s s uc u es as well as changes a ising om he ad ancemen o echnology. In his pape , he GDP pe capi a g ow h is b oken in o wo pa s: “P oduc i i y” and EM_2_2016.indd 38EM_2_2016.indd 38 3.6.2016 11:47:453.6.2016 11:47:45 39 2, XIX, 2016 Economics “Employmen ”, which can basically be desc ibed as he basic a ibu es o egional compe i i eness (Skokan, 2004). When moni o ing changes in P oduc i i y we use he app oach o OECD (2015b), while moni o ing changes in e ms o “Labou p oduc i i y” (GDP pe hou wo ked) and “Labou u iliza ion” (hou s wo ked). Also in e ms o Employmen we see he indica o s in line wi h he de i ni ion o he OECD (2015a), when moni o ing changes in he “Employmen a e” (employed pe sons di ided by he o al wo king-age popula ion) and “Labou o ce pa icipa ion a e” ( o al wo king- age popula ion di ided by he o al popula ion) indica o s. The mul iplica i e b eakdown o he GDP pe capi a indica o , based on he abo e desc ibed key is shown in he ollowing equa ion (2). (2) Based on he s udies o o he au ho s we can p ospec i ely assume ha p oduc i i y will be he dominan de e minan o g ow h in moni o ed egions (Cua esma e al, 2012; Baumol, 1986; Ga dine e al, 2004; Ba o & Sala-i-Ma in, 2004). Fo his eason we ha e chosen a less de ailed b eakdown o he Employmen pa ; con e sely, we ha e been qui e awa e o he desi abili y o classi y he P oduc i i y pa in de ail because, as ap ly desc ibed by Paul K ugman (1997): “P oduc i i y isn’ e e y hing, bu in he long un i is almos e e y hing”. Howe e , due o he abo e indica ed una ailabili y o da a on he s ock o he egional capi al we can p oceed o a mo e de ailed b eakdown o he P oduc i i y pa in o p oduc i i y esul ing om labou , capi al, o esidual ac o s, o in o mul i- ac o p oduc i i y. Fo hese easons we will moni o dispa i ies in he economic pe o mance o egions only wi hin he “limi ed” con ex o he abo e ou lined b eakdown (2). We ha e chosen he yea 2000 o be he ini ial yea o ou analysis as we do no conside i app op ia e o dis o he analysis by including he e y dynamic pe iod o he 1990s, du ing which he Viseg ad G oup coun ies aced undamen al poli ical, social, and economic changes. The pe iod o ans o ma ion o he na ional economies om a cen ally planned sys em o a ma ke sys em was, among o he hings, coupled wi h high l uc ua ions in he olume o p oduc ion and co e changes in i s s uc u e and in employmen , as well as wi h uns able p ice le els, undamen al changes in he owne ship s uc u e, he de elopmen o legisla i e amewo k, e c. (Fische e al, 1998; S igli z, 1999). The e o e, he analysis has been p epa ed o he pe iod 2000–2013, and gi en he objec i e o his a icle, we ha e paid special a en ion o he sub-pe iod 2004–2013, i.e. a e he en y o he Viseg ad G oup coun ies in o he EU. 3. De elopmen o Regional Dispa i ies in he Viseg ad G oup Coun ies Be o e emba king on he analysis o he de elopmen o dispa i ies in egional economic pe o mance, and he sou ces o hese dispa i ies, i is app op ia e o b ie l y ou line he de elopmen o egions wi hin he Viseg ad G oup coun ies in ela ion o he EU a e age alues. Whe he in e ms o he de elopmen o he egions he e is a endency owa ds ul i lling he objec i es o cohesion policy by balancing he economic dispa i ies, o whe he in eali y he objec i es a e no me . A simpli i ed illus a ion o he endencies in he de elopmen o he GDP pe capi a dispa i ies be ween egions o he Viseg ad G oup coun ies and he cu en EU a e age (EU 28) o he pe iod 2000–2013 and also o he sho ened pe iod 2004–2013, which ep esen s he in eg a ion pe iod o he Viseg ad G oup coun ies wi hin he EU, is cap u ed in Tab. 1. The endencies in he de elopmen o dispa i ies a e cap u ed h ough he absolu e alue o he di e ence be ween he a io o GDP pe capi a o he egion and he GDP pe capi a o he EU 28 a e age a he in e al bo de s. I is he e o e a e y ough and a he en a i e illus a ion ha , based on annual compa ison, shows by how many pe cen he egions ha e con e ged owa ds he EU 28 a e age alue du ing a gi en pe iod o ha e di e ged om i . Based on he esul s cap u ed in Tab. 1 we can say ha du ing he 2004–2013 pe iod only 7 egions did no con e ge owa ds he EU 28 a e age alue (CZ01 – P ague, CZ02 – Cen al Bohemia, CZ03 – Sou hwes , CZ04 – No hwes , EM_2_2016.indd 39EM_2_2016.indd 39 3.6.2016 11:47:453.6.2016 11:47:45 40 2016, XIX, 2 Ekonomie HU10 – Cen al Hunga y, HU31 – No he n Hunga y and SK01 – B a isla a Region). The i ndings con i m p e ailing con e gence o he EU 28 a e age and can be desc ibed as o ally compa ible wi h he i ndings o many o he s udies ha deal wi h he de elopmen o dispa i ies in ans o med economies (Dob insky & Ha lik, 2014; Cua esma e al., 2012; Fo gó & Je čák, 2015). Excluding capi al egions (CZ01, HU10 and SK01), whe e he measu ed de ia ion om he a e age alue was posi i e, he measu ed nega i e de ia ion in CZ02, CZ03, CZ04, and HU31 egions was ela i ely low – in all cases wi hin 3 pe cen age poin s. I is also in e es ing ha dispa i ies – whe he in a posi i e o nega i e di ec ion – a e connec ed o ou Czech egions, o o hal o all Czech egions. In con as , in o he coun ies, he esul ing di e gence endencies we e e y a e and mos ly ela ed o he capi al egion, whe e a posi i e de ia ion ep esen di e gence due o highe economic pe o mance, which basically co esponds wi h he easoning p esen ed by he economis s o he New Economic Geog aphy mo emen , who s a ed ha economic ac i i ies a e concen a ed in he cen al agglome a ions (K ugman, 1991; Fuji a & K ugman, 2004; O a iano & Puga, 1998). Al hough in he case o me opoli an egions his phenomenon goes di ec ly agains he con e gence hypo hesis, i ce ainly canno be aken as an indica ion o an undesi able de elopmen because hese egions a e impo an cen es o de elopmen wi h a signi i can in l uence on he de elopmen o o he egions wi hin he coun y, and a he same ime hey a e some o he mos economically powe ul egions ac oss he EU (Eu os a , 2015). egion end change (in %) end change (in %) egion end change (in %) end change (in %) 2000–2013 2004–2013 2000–2013 2004–2013 CZ01 D 31.1 D 6.1 PL22 C 19.9 C 14.8 CZ02 C 0.9 D -2.9 PL31 C 13.7 C 12.4 CZ03 C 5.1 D -0.6 PL32 C 13.6 C 11.9 CZ04 C 2.3 D -2.1 PL33 C 12.5 C 10.2 CZ05 C 2.9 C 1.3 PL34 C 14.2 C 12.5 CZ06 C 14.2 C 8.4 PL41 C 22.6 C 19.6 CZ07 C 8.4 C 4.7 PL42 C 10.3 C 12.4 CZ08 C 13.6 C 5.5 PL43 C 14.6 C 12.4 HU10 C 25.2 D 8.8 PL51 C 27.1 C 25.8 HU21 C 7.6 C 0.4 PL52 C 15.2 C 12.4 HU22 C 7.6 C 3.2 PL61 C 13.3 C 12.1 HU23 C 4.9 C 1.2 PL62 C 12.3 C 11.3 HU31 C 5.3 D -0.9 PL63 C 18.6 C 16.6 HU32 C 7.3 C 2.1 SK01 D 77.1 D 56.4 HU33 C 4.9 C 1.2 SK02 C 24.2 C 17.3 PL11 C 20.9 C 17.5 SK03 C 19.0 C 13.6 PL12 C 35.2 C 32.7 SK04 C 14.6 C 10.2 PL21 C 17.1 C 15.9 No es: C s ands o con e gence; D ep esen s di e gence; nega i e alues indica e ha he egion a i s con e ged owa ds he a e age alue om he “ op” and a e eaching i , di e ged “downwa ds”. Sou ce: au ho s’ own wo k based on Eu os a (2015) Tab. 1: De elopmen o dispa i ies in e ms o GDP pe capi a be ween Viseg ad G oup egions and he EU 28 a e age (2000–2013; 2004–2013) EM_2_2016.indd 40EM_2_2016.indd 40 3.6.2016 11:47:453.6.2016 11:47:45 41 2, XIX, 2016 Economics The accession o he Czech Republic o he Eu opean in eg a ion p ojec in he con ex o gene al g ow h end and he associa ed con e gence o egions o o he Viseg ad G oup coun ies o he EU 28 a e age looks he leas posi i e (jus because he ac ual g ow h does no ma ch he a e o o he Eu opean egions and he e o e, in e ms o dispa i ies de elopmen , does no con ibu e o he con e gence, i p obably would no be app op ia e, a his s age, o ma k he de elopmen o Czech egions as ou igh nega i e). The i ndings ha a subs an ial numbe o Czech egions did no de elop in a e y posi i e way du ing hei in eg a ion in o he EU akes on a u he dimension when we ake in o accoun he ela i ely sho pe iod be o e he coun y joined he EU (2000–2004). Tab. 1 clea ly shows ha du ing he pe iod 2004–2013 he con e gence end was conside ably weake when compa ed o he pe iod 2000–2013. I is qui e logical o measu e lowe di e ences o sub-pe iods when conside ing a ela i ely s eady de elopmen , bu he ac ually eco ded changes a e o mos egions signi i can ly lowe and p opo ionally hey do no co espond o he ex en o he sho ening o he pe iod. Vi ually iden ical conclusions can be d awn o he de elopmen o dispa i ies among Hunga ian egions, whe e he measu ed con e gence end in he pe iod 2004–2013 was also signi i can ly weake when compa ed wi h he pe iod 2000–2013. Con e sely, in he case o Polish and Slo ak egions he conclusions ega ding a signi i can slowdown in con e gence a e he coun ies joining he EU do no apply. Based on measu emen s we can conclude ha o a numbe o Slo ak and Polish egions he con e gence end owa ds he EU 28 a e age has been a he e en; in he case o some Polish egions i e en seems ha he pace o he con e gence p ocess in he pe iod 2004–2013 sligh ly accele a ed. The de ec ed exis ence o analogies in he ends o egional dispa i y de elopmen o he wo pai s o coun ies Czech Republic-Hunga y and Poland-Slo akia is con i med by he i ndings o ano he s udy by Zd ažil and K a o á (2012), who mo eo e belie e, based on he analysis o he pe iod 1999–2008, ha he NUTS II egions o he men ioned pai s di e ged om each o he , especially in he pe iod be o e joining he EU. Al hough he abo e iew o he de elopmen o egional economic dispa i ies o he Viseg ad G oup coun ies is somewha limi ed, he conclusions appea o be e y p oblema ic in e ms o ul i lling he EU cohesion policy objec i es. Al hough he e has been qui e an ob ious con e gence o mos egions o he EU 28 a e age, he ques ion is o wha ex en has his con e gence been caused by he in eg a ion, and o wha ex en would his ha e happened spon aneously. 3.1 De elopmen o Dispa i ies in Te ms o σ-con e gence Based on esul s o he empi ical measu emen s cap u ed in Fig. 1, we can say ha he ex en o dispa i ies in he economic pe o mance among egions o he Viseg ad G oup coun ies a e hei accession o he EU (2004) g ew up o 2007, al hough he end had been he e since he beginning o he analyzed pe iod (2000). Subsequen ly, we can say ha he end changed o con e gence, and al hough in 2011 he ex en o dispa i ies among Viseg ad G oup’s egions was compa able wi h 2004, i was educed in subsequen yea s. This is somewha con i med by he i ndings o some ea lie s udies ha de end he hypo hesis o con e gence among Eu opean egions (Mon o , 2008; A ms ong, 1995; Geppe e al, 2008), especially among he ans o med egions o he Cen al and Eas e n Eu opean coun ies, o he Viseg ad G oup (Vin o á & Žďá ek, 2007; T doň, 2010). A he same ime, he i ndings showing ha he con e gence ends only s a ed in he pe iod a e he Viseg ad G oup coun ies had joined he EU, a e la gely compa ible wi h he conclusions o he Ben-Da id (1999) s udy ha showed ha libe aliza ion o he economic en i onmen oge he wi h in eg a ion a e he ac o s ha signi i can ly con ibu es o he con e gence. The e o e, he accession o he EU can be seen as an impulse ha g ea ly encou aged he p ocess o con e gence in he en i onmen o he o me Eas e n bloc coun ies (Dob insky & Ha lik, 2014). The economic c isis and he ex en o i s in l uence on he pe o mance o indi idual economies ce ainly had a signi i can e ec on he obse ed con e gence o Viseg ad G oup egions. Fo example T doň e al (2012) show in his con ex ha wi hin he Viseg ad G oup coun ies he de elopmen o he economic pe o mance o Poland was clea ly he leas a ec ed by he economic c isis. Conside ing EM_2_2016.indd 41EM_2_2016.indd 41 3.6.2016 11:47:463.6.2016 11:47:46 42 2016, XIX, 2 Ekonomie ha Polish egions accoun o almos hal o he sample and a e gene ally conside ed less de eloped, he ac ual con ibu ion o in eg a ion o con e gence, which has been appa en since he beginning o he economic c isis, is la gely dispu able. Howe e , looking a he de elopmen o egional dispa i ies in indi idual Viseg ad G oup coun ies, i seems ha in he pe iod ollowing he accession o he coun ies o he EU, om he na ional poin o iew, he egional dispa i ies s eadily g ew. This g owing end only s a ed o u n in 2009 o he Czech, Hunga ian, and Slo ak egions, while he Polish egions emained unchanged wi h he inc ease in dispa i ies con inuing. Wi hin he moni o ed sub-pe iod be o e he accession o he Viseg ad G oup coun ies o he EU (2000–2004) i can also be a gued ha he de elopmen o egional dispa i ies in he Czech Republic, Hunga y, and Slo akia was p e y simila – i.e. g owing; howe e , among Polish egions he e was no inc ease in dispa i ies. In acco dance wi h he abo e desc ibed si ua ion, in e ms o egions ac oss he Viseg ad G oup, his i nding seems somewha illogical; howe e , i is ully compa ible wi h he i ndings o some ecen s udies on he e ec i eness o he Eu opean cohesion policy ha ag ee on he ac ha al hough ac oss he EU bo h coun ies and egions a he con e ge, in e nally o many coun ies di e gence is mo e common (Ba ca, 2009; Geppe e al, 2008; Ma zino o, 2012). 4. Na u es o Regional Dispa i ies in he Viseg ad G oup Coun ies Wha e e he ends ega ding he de elopmen o egions wi hin he Viseg ad G oup coun ies, i is en i ely app op ia e o ask he ques ion: wha is hei na u e? Fo only wi h his knowledge is i hen possible o make an e o o ac i ely in l uence he de elopmen o dispa i ies h ough he applica ion o egional policy ins umen s. The e o e, in he ollowing subsec ions we analysed he economic g ow h in egions o he Viseg ad G oup coun ies in o de o y and disco e he di e ences in he componen s o g ow h in he indi idual coun ies, how hey de e mine he economic de elopmen , and o wha deg ee hey a e esponsible o he di e ences in he de elopmen o dispa i ies as demons a ed by Fig. 1 abo e. The analysis is di ided in o ou pa s, one o each coun y in he sample, ollowed by a b ie summa y o he main i ndings. Fig. 1: σ-con e gence o GDP pe capi a, he Viseg ad G oup and i s coun ies (2000–2013) Sou ce: au ho s’ own wo k based on Eu os a (2015) EM_2_2016.indd 42EM_2_2016.indd 42 3.6.2016 11:47:463.6.2016 11:47:46 43 2, XIX, 2016 Economics Ou mo i a ion o p esen ing he esul s o indi idual coun ies s ems om he ac ha he e a e la ge di e ences in g ow h be ween he egions ac oss he Viseg ad G oup s a es while he inne -coun y di e ences a e much mo e simila (see Tab. 1 abo e). We guess i can be due o he di e ences in egional policy p inciples applied in indi idual coun ies as well as he esul o une en le els o GDP pe capi a and i s g ow h componen s in egions o indi idual coun ies. E en hough we a e awa e o desi abili y o e ealing he o igins o g ow h dispa i ies wi hin he componen s ha we ha e examined, we guess his issue is a behind he pu pose o his pape which is a he answe he uly c ucial ques ion on: How a e he dispa i ies caused by i s main componen s? Answe ing his ini ial ques ion enables one o s a in en ionally aimed analysis ha should b ing ele an i ndings and ecommenda ions o indi idual coun ies and help o shape he mos app op ia e egional policy objec i es. 4.1 Czech Regions As shown clea ly in Tab. 2 he dispa i ies in he de elopmen o he GDP pe capi a indica o among he Czech NUTS II egions can ha dly be conside ed dynamic du ing 2004–2013. This pe iod can be di ided in o wo hal es, in he i s hal (2004–2008) he ex en o he measu ed dispa i ies g ew slowly, while in he second hal (2009–2013) i g adually declined. When we ake in o accoun he de elopmen o dispa i ies be o e he Czech Republic joined he EU, we can see ha a g adual inc ease in dispa i ies had al eady occu ed in his pe iod, i.e. om he s a ing poin o he analysis – om he yea 2000. The e o e, i can be concluded ha dispa i ies in he economic pe o mance among he Czech egions had ( ela i ely) g own o e he long e m, and his end con inued e en a e he Czech Republic’s en y in o he EU. Howe e , a p esen (o in he las epo ing pe iod), egional dispa i ies in e ms o GDP pe capi a ha e eached a compa able le el wi h ha o when he Czech Republic joined he EU. The e o e, i can be specula ed ha he end in he de elopmen o economic dispa i ies has changed and a new phase o a g adual dec ease o dispa i ies has s a ed. Dob insky and Ha lik (2014) conside he ela i e high le el o de elopmen o he Czech egions o be he cause o hei con e gence; his is e l ec ed in a lowe a e o GDP g ow h, especially when compa ed o Poland and Slo akia. A he same ime i can be a gued ha , al hough he ex en o dispa i ies among egions o he Czech Republic is lowe in compa ison wi h o he coun ies o he Viseg ad G oup (see Fig. 1 abo e), he ends o he obse ed subsample (Czech egions) a e e y simila o he ends o he whole sample (Viseg ad G oup egions). When looking a he b eakdown o he GDP pe capi a, i is clea ha he dominan componen s p ima ily esponsible o he dispa i ies in he economic pe o mance o egions a e he dispa i ies in p oduc i i y. When b eaking down he o e all p oduc i i y in acco dance wi h he p ocedu e de i ned abo e (2), i is ob ious ha Labou p oduc i i y – GDP pe hou wo ked – can wi hou a doub be conside ed he cen al de e minan o dispa i ies. The sha e o Labou p oduc i i y dispa i ies wi hin he GDP pe capi a dispa i ies g ew du ing he moni o ed pe iod in he Czech egions. In e ms o absolu e con ibu ion o dispa i ies i can be a gued ha he de elopmen o Labou p oduc i i y dispa i ies la gely ollows he de elopmen o he GDP pe capi a dispa i ies. This simila i y is na u ally comple ely logical conside ing he men ioned de e minis ic ela ionship be ween he wo indica o s. Al hough, in absolu e e ms, he highes dispa i y in Labou p oduc i i y was measu ed in 2008, he same as wi h GDP pe capi a; he e was no dec ease in he dispa i ies in Labou p oduc i i y o he le el o 2004 by he end o he epo ing pe iod. In ela i e e ms, an inc ease in he con ibu ion o Labou p oduc i i y o he o e all dispa i ies in GDP pe capi a wi hin he Czech egions can be clea ly concluded. To he con a y, o he economic pe o mance ac o s – Labou u iliza ion and Employmen a e – displayed con e gence ends. The con ibu ion o hese wo ac o s o he dispa i ies in economic pe o mance is indeed e y low; he e o e, he e ec o hese ac o s on he con e gence o Czech egions, compa ed wi h he o al ex en o dispa i ies in GDP pe capi a, can be ega ded as insigni i can bu s ill exis ing. Rega ding he Labou pa icipa ion a e wi hin he pe iod o 2004–2013 we can speak o a ela i ely s able de elopmen o dispa i ies wi h a de ia ion be ween 2009 and 2010. I we include he sub- pe iod be o e he Czech Republic joined o he EU, i.e he o al pe iod since 2000, hen we could alk om an o e all pe spec i e abou e y EM_2_2016.indd 43EM_2_2016.indd 43 3.6.2016 11:47:463.6.2016 11:47:46 44 2016, XIX, 2 Ekonomie mild con e gence ends; howe e , his end is no en i ely clea . In summa y i can p obably be said ha he high con ibu ion o Labou p oduc i i y dispa i ies o he dispa i ies in he economic pe o mance o he Czech egions has no only been due o he de elopmen o he Labou p oduc i i y dispa i ies, bu also pa ly due o he de elopmen endencies – mainly con e gence – o o he ac o s ha ha e been o a g ea e o lesse ex en esponsible o he dispa i ies in GDP pe capi a. 4.2 Hunga ian Regions In e ms o he de elopmen o dispa i ies in economic pe o mance, he Hunga ian egions exhibi pa ially analogous endencies wi h he Czech egions, and conside ing he abo e, e en wi h he en i e sample o Viseg ad G oup egions. Thus, a i s , he e was a g adual inc ease in dispa i ies om he s a ing poin o he analysis (2000) ha las ed e en a e Hunga y joined he EU (2004), hen he highes le el o dispa i ies was eached in 2009 – i.e. wi h some delay compa ed wi h he Viseg ad G oup and he Czech Republic – and consequen ly since hen he dispa i ies in he egional economic pe o mance ha e been dec easing (see Tab. 3). Howe e , besides he ac ha he dispa i ies among Hunga ian egions ha e been lowe in compa ison wi h he Czech egions, he dec ease in dispa i ies a he end o he moni o ed pe iod was no such ha hey d opped o he le el a which hey we e when Hunga y joined he EU. When measu ing he sou ces o dispa i ies in GDP pe capi a among Hunga ian egions, we ound ha Labou p oduc i i y was again a signi i can de e mining componen and ha i s signi i cance s eadily g ew o e ime. And, al hough he con ibu ion o Labou p oduc i i y o he dispa i ies in GDP pe capi a is ela i ely high, i is no ha dominan in compa ison wi h he Czech egions. Fu he mo e, he e is highe con ibu ion o Labou pa icipa ion a e appa en in Tab. 3, which means a con e gence o exis ing dispa i ies among Hunga ian egions, and a he same ime a educ ion in he con ibu ion o he o al dispa i ies in economic pe o mance; howe e , compa ed wi h he con ibu ion o his ac o o he dispa i ies among Czech egions he le el o con ibu ion he e was ini ially almos h ee old, and a he end o he 2000–2013 pe iod app oxima ely wice as high. In e ms o Labou u iliza ion we can con i m a e y low ange o egional dispa i ies ( he lowes wi hin he Viseg ad G oup coun ies), which is associa ed wi h con e gence, h oughou he 2000–2013 pe iod. The con ibu ion o Labou u iliza ion dispa i ies o he dispa i ies in GDP pe capi a g adually los i s impo ance. The de elopmen o he Employmen a e dispa i ies du ing he 2000–2006 pe iod was cha ac e ized by oscilla ions o a alue a ound 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 GDP pe capi a .364 .384 .396 .413 .412 .422 .424 .439 .442 .433 .436 .418 .410 .416 P oduc i i y changes Labou p oduc i i y .266 .284 .305 .322 .324 .334 .334 .362 .369 .354 .359 .353 .342 .353 in % 73.0 74.0 77.1 78.0 78.7 79.3 78.7 82.3 83.6 81.8 82.4 84.6 83.5 84.9 Labou u iliza ion .024 .024 .018 .019 .018 .015 .021 .019 .020 .016 .012 .013 .010 .010 in % 6.6 6.2 4.6 4.7 4.4 3.6 4.8 4.3 4.6 3.8 2.9 3.0 2.4 2.4 Employmen changes Employmen a e .042 .040 .034 .035 .038 .041 .037 .026 .022 .026 .027 .021 .026 .025 in % 11.5 10.3 8.7 8.5 9.2 9.8 8.7 5.8 4.9 6.1 6.1 5.1 6.4 5.9 Labou pa i-cipa ion a e .032 .036 .038 .036 .032 .031 .033 .033 .030 .036 .038 .031 .031 .028 in % 8.8 9.5 9.6 8.8 7.7 7.3 7.8 7.5 6.9 8.3 8.7 7.3 7.6 6.8 Sou ce: au ho s’ own wo k based on Eu os a (2015) Tab. 2: Czech egions – σ-con e gence o GDP pe capi a and i s b eakdown (2000–2013) EM_2_2016.indd 44EM_2_2016.indd 44 3.6.2016 11:47:463.6.2016 11:47:46 45 2, XIX, 2016 Economics 0.20, hen he e was a sudden inc ease coupled wi h oscilla ions o a ound 0.30. The alue measu ed in he las yea o he analysis (2013) sugges s a educ ion in he ex en o dispa i ies, bu he ques ion is whe he his is he beginning o a new end o me ely a empo a y de ia ion. Gene ally, he de elopmen o Employmen a e dispa i ies can be desc ibed as a he g owing and he e o e con ibu ing o he inc ease in he dispa i ies in GDP pe capi a among Hunga ian egions, which is also e iden when looking a he de elopmen in e ms o absolu e and ela i e con ibu ions (see Tab. 3). 4.3 Polish Regions The de elopmen o dispa i ies ha a e e l ec ed in Tab. 4 clea ly shows ha he ex en o dispa i ies in GDP pe capi a among he Polish egions is de i ni ely he lowes wi hin he Viseg ad G oup. A he same ime he de elopmen o hese dispa i ies s ands ou he mos in compa ison wi h he o he Viseg ad G oup coun ies ( his ac is well demons a ed by Fig. 1 abo e). In o he wo ds, egional dispa i ies wi hin Czech, Hunga ian, and Slo ak egions had g own s eadily be o e and a e 2004 (and wi h g ea e in ensi y han was he case in Polish egions) and only since 2009 can we alk abou hei s abiliza ion, o pe haps e en a change o end and a g adual educ ion o dispa i ies among egions. In con as , in he case o he Polish egions we can alk abou a ela i ely s able de elopmen o dispa i ies un il 2004, ollowed by a pe iod o inc eased di e gence. We also canno claim, based on he measu emen s cap u ed in Tab. 4 ha in he case o Polish egions he e was a peak and a subsequen s abiliza ion, o e en a e e sal in he end, o a s a ing con e gence. Rega ding he causes o he dispa i ies, i is e iden looking a Tab. 4 ha e en in he case o Polish egions he dispa i ies in Labou p oduc i i y pe uni o ime, i.e. in GDP pe hou wo ked, a e p ima ily esponsible o he ex en o dispa i ies in GDP pe capi a. Howe e , bo h in absolu e e ms and in ela i e e ms, he con ibu ion o his componen o he dispa i ies in GDP pe capi a is clea ly he lowes wi hin he Viseg ad G oup coun ies – abou wo- hi ds in ela ion o he Hunga ian dispa i ies, abou a hal in ela ion o he Czech, and a hi d in ela ion o he Slo ak egional dispa i ies. F om his pe spec i e Polish egions can be ma ked as he leas a ied wi hin he Viseg ad G oup. In e ms o an absolu e con ibu ion o he dispa i ies in economic pe o mance o Polish egions he de elopmen o Labou p oduc i i y dispa i ies la gely co ela es wi h he de elopmen o dispa i ies in GDP pe capi a – a ela i ely s able de elopmen du ing he pe iod p eceding he coun y joining he EU is ollowed by a change in he end and g owing dispa i ies in he ollowing yea s. Howe e , in ela i e e ms he de elopmen o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 GDP pe capi a .330 .332 .367 .352 .354 .364 .383 .393 .392 .403 .399 .381 .385 .380 P oduc i i y changes Labou p oduc i i y .210 .229 .254 .247 .245 .253 .277 .284 .286 .307 .317 .291 .289 .296 in % 63.7 69.1 69.2 70.0 69.2 69.3 72.2 72.3 72.9 76.1 79.4 76.2 75.1 78.0 Labou u iliza ion .011 .009 .010 .010 .009 .007 .008 .006 .007 .006 .007 .009 .006 .005 in % 3.4 2.6 2.8 2.7 2.6 2.0 2.2 1.5 1.7 1.5 1.8 2.3 1.7 1.3 Employmen changes Employmen a e .022 .018 .018 .020 .018 .020 .024 .031 .035 .031 .028 .033 .029 .023 in % 6.7 5.6 5.0 5.7 5.0 5.4 6.3 7.9 9.0 7.8 7.0 8.6 7.6 6.2 Labou pa i-cipa ion a e .086 .076 .085 .076 .082 .085 .074 .072 .065 .059 .047 .049 .060 .055 in % 26.2 22.7 23.1 21.6 23.2 23.3 19.3 18.3 16.5 14.6 11.8 12.9 15.7 14.5 Sou ce: au ho s’ own wo k based on Eu os a (2015) Tab. 3: Hunga ian egions – σ-con e gence o GDP pe capi a and i s b eakdown (2000–2013) EM_2_2016.indd 45EM_2_2016.indd 45 3.6.2016 11:47:463.6.2016 11:47:46 52 2016, XIX, 2 Ekonomie Pa dubice. Se ies D, Facul y o Economics and Adminis a ion, 16(1), 316-328. T doň, M., Tuleja, P., & Ve ne , T. (2012). Ekonomická ýkonnos a h p áce kon ex u ekonomické k ize: zkušenos i ze zemí Viseg adské č yřky. E&M Ekonomie a Managemen , 15(3), 16-30. Vin o á, R., & Žďá ek, V. (2007). Vz ah eálné a nominální kon e gence ČR a no ých členských zemích EU (Wo kingPape CES VŠEM 8/2007). P aha: CES VŠEM. Zd ažil, P. (2014). The In l uence o Inno a ion Po en ial on Li ing Condi ions De elopmen o Cen al and Eas e n Eu opean Coun ies Popula ion. In V. Klimo a, & V. Zi ek (Eds.), 17 h In e na ional Colloquium on Regional Sciences. Con e ence P oceedings (pp. 209-216). B no: Masa yko a uni e zi a. doi:10.5817/CZ.MUNI.P210-6840-2014-25. Zd ažil, P., & K a o á, I. (2012). Do he V4 Regions Con e ge?. 15 h In e na ional Colloquium on Regional Sciences. Con e ence P oceedings (pp. 48-58). B no: Masa yko a uni e zi a. Ing. Pa el Zd ažil, Ph.D. Uni e si y o Pa dubice Facul y o Economics and Adminis a ion Ins i u e o Regional and Secu i y Sciences [email p o ec ed] Ing. Pe a Applo á Uni e si y o Pa dubice Facul y o Economics and Adminis a ion Ins i u e o Regional and Secu i y Sciences [email p o ec ed] EM_2_2016.indd 52EM_2_2016.indd 52 3.6.2016 11:47:473.6.2016 11:47:47 53 2, XIX, 2016 Economics Appendix 1: σ-con e gence o g ow h componen s, he Viseg ad G oup and i s coun ies (2000–2013) EM_2_2016.indd 53EM_2_2016.indd 53 3.6.2016 11:47:473.6.2016 11:47:47 54 2016, XIX, 2 Ekonomie Abs ac GROWTH DISPARITIES AMONG REGIONS OF THE VISEGRAD GROUP COUNTRIES: AN EVIDENCE OF THEIR EXTENT AND NATURE Pa el Zd ažil, Pe a Applo á The deepening o egional dispa i ies is an issue o inc easing impo ance ha has been sys ema ically emphasized in he EU policy, especially since he p ocess o “Eas e n In eg a ion” has s a ed. The pape ocuses on he Viseg ad G oup coun ies whose egions a e less de eloped in he EU con ex . The aim o he esea ch is o assess he de elopmen o dispa i ies in egional economic pe o mance o he Viseg ad G oup coun ies, o iden i y how he ac o s o economic g ow h de e mine hese dispa i ies, and pa ly o assess whe he he in eg a ion o he Viseg ad G oup coun ies in o he EU in l uenced he de elopmen o egional dispa i ies in hese coun ies. Fo he analysis o dispa i ies du ing 2000–2013 we selec ed an app oach o measu ing eal con e gence (sigma-con e gence). Dispa i ies we e measu ed in he con ex o a b eakdown o he GDP pe capi a in o sub-componen s, e l ec ing on he de elopmen o dispa i ies in p oduc i i y and employmen . The esul s show ha , al hough egions o he Viseg ad G oup coun ies con e ged owa ds he EU a e age and also in e ms o he Viseg ad G oup as a whole, egional dispa i ies wi hin coun ies a he inc eased. This led o a pa adox whe e, al hough he objec i e o educing egional dispa i ies ac oss he EU was sa is i ed, om a na ional pe spec i e dispa i ies inc eased. The Labou p oduc i i y ac o , wi h i s dominan ye s eadily g owing con ibu ion, is he main de e minan o dispa i ies in he pe o mance o he Viseg ad G oup egions. O he sou ces o dispa i ies a e cha ac e ized by a s able de elopmen o con e gence. Only Polish egions de ia ed om he gene al conclusions, since he ex en o dispa i ies among hem g ew cons an ly, and he na u e o dispa i ies was he Labou pa icipa ion a e. In e ms o he impac caused by accession in o he EU, he measu ed changes we e a he mino and he iden i i ed ends had mos ly been in place be o e he Viseg ad G oup coun ies en e ed he EU. Key Wo ds: Viseg ad G oup, Cen al Eu ope, egional dispa i ies, p oduc i i y, g ow h, EU enla gemen . JEL Classi i ca ion: R11, O47. DOI: 10.15240/ ul/001/2016-2-003 EM_2_2016.indd 54EM_2_2016.indd 54 3.6.2016 11:47:483.6.2016 11:47:48