Regional Disparities and the Degree of Income Convergence of the EU Regions

Ivana Kostadinović; Sunčica Stanković

doi:10.5755/j01.ee.36.5.28117

Authors

Ivana Kostadinović University of Nis, Faculty of Economics, Serbia
Sunčica Stanković Metropolitan University, Faculty of Management, Serbia

DOI:

https://doi.org/10.5755/j01.ee.36.5.28117

Keywords:

European Union, regional policy, inequality, convergence, regression equations

Abstract

This study investigates income convergence across NUTS 2 regions in the EU, focusing on disparities between EU 14 and EU 13 Member States from 2004 to 2023. Employing econometric tools such as absolute and conditional β-convergence, σ-convergence, and disparity indices (Gini, DRC, ADRC), the study analyzes temporal and spatial income inequality. Structural controls such as education, investment, and migration were considered in conditional models. Visualizations include Gini trends, convergence maps, and GDP distributions. EU 13 regions exhibit robust convergence (2.7% annually), while EU 14 show divergence. Results reveal a paradox between convergence and disparity metrics, suggesting structural and geographic factors shape outcomes. Effective cohesion policy must be regionally tailored. The study provides policy recommendations, segmented by macro-regions, and highlights gaps in institutional capacity, innovation ecosystems, and policy resilience.

Author Biographies

Ivana Kostadinović, University of Nis, Faculty of Economics, Serbia

Ivana Kostadinović, Ph.D., is an Associate Professor at the Faculty of Economics, University of Niš. Her research interests focus on industrial economics, industrial management, tourism economics, and regional economics. ORCID iD https://orcid.org/0000-0002-7676-3472.
Sunčica Stanković, Metropolitan University, Faculty of Management, Serbia

Sunčica Stanković, Ph.D., is an Associate Professor at the Faculty of Management, Metropolitan University, Belgrade. Her research interests focus on the application of mathematical and statistical methods in economic research. ORCID iD https://orcid.org/0000-0001-8824-1973.