Mapping inequality: regional income disparities and their determinants in Armenia

Relevance. Income inequality, especially in the context of regional development, has become a key focus in academic and policy discussions. For Armenia, which is exposed to continued geopolitical pressures, balanced and sustainable regional development is crucial for national security and economic stability, making it urgent to strengthen its border regions by raising incomes and improving living standards. Research objective. This study analyzes regional-level macroeconomic data to identify key factors driving income inequality and propose policy recommendations to address these disparities. Data and methods. The study applies statistical and comparative analysis of regional economic data in Armenia, along with a panel regression model with fixed effects. The analysis considered key drivers of income inequality and regional economic weaknesses, focusing on economic growth, wages, poverty, access to education and healthcare, and financial services in Armenian regions. Results. Most of the factors in question significantly impact income distribution, with the condition of regional education systems being the most important. The decline in educational infrastructure and closure of institutions have clearly contributed to growing income inequality across regions. Conclusions. The main conclusion is that, in order to reduce income disparities between regions, a priority task should be to improve educational infrastructure, as it plays a key role in economic growth and the overall well-being of regional populations.