Decentralization as a Factor Influencing Economic Imbalances in the European Countries
Decentralization as a Factor Influencing Economic Imbalances in the European Countries

Summary/Abstract: This paper deals with the potential connections of decentralization with economic imbalances in the European countries. Two indicators have been chosen for measuring economic imbalances: an indicator dispersion of regional GDP per capita as a representative of the performance imbalances within countries (it measures the economic development gap among regions in European countries) and a multidimensional inequality-adjusted human development index as a representative of inequalities in the distribution of wealth in the countries. According to this analysis quite weak links were proved between the tested variables. Decentralization does not belong among the strong factors influencing economic imbalances. Despite this weak link it is still possible to conclude that decentralization is more connected with differences in economic performance than with differences in distribution.

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