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Inequality and the Transition: Regional Development in Lithuania

Author

Listed:
  • Larry Sawers

    () (American University)

Abstract

This research explores the substantial growth in regional inequality within Lithuania in the post-socialist era. A few regions, especially the capital city and its environs, have been able to attract substantial foreign investment, bolstering wages and employment and easing the move to a market-based economy. Isolated rural areas with few opportunities for formal or informal sector employment or even commercial farming have suffered the most, while smaller industrial cities with collapsing employment in manufacturing are in an intermediate position. The paper uses descriptive statistics as well as ordinary least squares and fixed effects panel regressions to examine this issue.

Suggested Citation

  • Larry Sawers, 2006. "Inequality and the Transition: Regional Development in Lithuania," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 6(1), pages 37-51, July.
  • Handle: RePEc:bic:journl:v:6:y:2006:i:1:p:37-51
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    File URL: http://biceps.org/assets/docs/bje/spring_summer_2006.pdf
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    References listed on IDEAS

    as
    1. Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, pages 655-673.
    2. Bayoumi, Tamim & Eichengreen, Barry, 1992. "Shocking Aspects of Monetary Unification," Department of Economics, Working Paper Series qt791143kp, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    3. Tamim Bayoumi & Barry Eichengreen, 1992. "Shocking Aspects of European Monetary Unification," NBER Working Papers 3949, National Bureau of Economic Research, Inc.
    4. Peter Backé & Christian Thimann & Olga Arratibel & Oscar Calvo-Gonzalez & Arnaud Mehl & Carolin Nerlich, 2004. "The acceding countries’ strategies towards ERM II and the adoption of the euro - an analytical review," Occasional Paper Series 10, European Central Bank.
    5. Zsolt Darvas & György Szapáry, 2008. "Business Cycle Synchronization in the Enlarged EU," Open Economies Review, Springer, pages 1-19.
    6. Michael Artis & Massimiliano Marcellino & Tommaso Proietti, 2004. "Characterising the Business Cycle for Accession Countries," Working Papers 261, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Transition; Inequality; Lithuania; Regional Development;

    JEL classification:

    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics

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