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Anatomy of Regional Disparities in the Slovak Republic

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  • Mariusz Jarmuzek
  • Mr. Biswajit Banerjee

Abstract

This paper examines economic growth and various dimensions of regional disparities in Slovakia. We find that regional disparities in the levels of GDP per capita, labor productivity, and labor utilization have widened since 2000, coinciding with the time that Slovakia initiated negotiations on EU accession. Notwithstanding ?-divergence in the levels, there was conditional ?-convergence in the growth rates of GDP per capita and labor productivity. Improvements in total factor productivity were the main engine of growth of GDP in all regions. Sustaining growth and reducing disparities will require increasing the labor utilization ratio and improving the structural and policy determinants of productivity in the eastern regions. The main policy priorities are to improve transportation infrastructure, enhance cost competitiveness through greater regional differentiation in wages and further decentralization of collective bargaining, and increase accumulation of human capital.

Suggested Citation

  • Mariusz Jarmuzek & Mr. Biswajit Banerjee, 2009. "Anatomy of Regional Disparities in the Slovak Republic," IMF Working Papers 2009/145, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/145
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    Cited by:

    1. Štefan Rehák & Oliver Rafaj & Tomáš Černěnko, 2021. "EU integration, regional development problems and the rise of the new radical right in Slovakia," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(2), pages 303-321, April.
    2. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.
    3. Peter Pisár & Martin Varga, 2017. "Financial and Other Indicators for Measurement of the Regional Disparities in Slovakia in 2005 - 2015," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2017(4), pages 67-82.
    4. Rodríguez-Pose, Andrés & Hardy, Daniel, 2017. "Firm competitiveness and regional disparities in Georgia," LSE Research Online Documents on Economics 67543, London School of Economics and Political Science, LSE Library.
    5. Petr Blížkovský, 2012. "Regional disparities and convergences in the European Union," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(4), pages 59-70.
    6. Martin Lábaj & Peter Silaniè & Christoph Weiss, 2013. "Entry and Competition in a Transition Economy: The Case of Slovakia," Department of Economic Policy Working Paper Series 003, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    7. Petr Blizkovsky, 2012. "Are We Living in a Converging World? Regional Disparities and Convergences from a Global Perspective," Research in World Economy, Research in World Economy, Sciedu Press, vol. 3(2), pages 41-51, September.
    8. Didit Welly UDJIANTO & Joko SUSANTO & PURWIYANTA, 2019. "Infrastructure, Employment And Income Convergence," Romanian Journal of Economics, Institute of National Economy, vol. 49(2(58)), pages 50-61, December.

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