Impact of Selected Factors on the Formation of Regional Disparities in Slovakia
Impact of Selected Factors on the Formation of Regional Disparities in Slovakia

Summary/Abstract: The purpose of this study is to perform the evaluation and quantification of the impact of factors contributing to the formation of regional disparities in Slovakia. The article discusses the impact of factors such as nominal wages, unemployment rate, variability of job vacancies, labour productivity, or foreign direct investment on the amount of household disposable income and generated savings within the period of eleven years, as well as the impact of these factors on the wealth distribution among the households which was identified while applying the Gini coefficient for each region. With regard to the data structure, the panel data regression was applied in the paper (a pooled regression model, a random effects model, and a fixed effect model). Analysis results confirmed significance of five hypotheses, i.e. a decrease in unemployment rates in regions with higher wages will result in lower increase in wages than in the remaining region groups; in regions with lower unemployment rates, an increase in job vacancies is associated with a higher increase in offered wages and an increase in the labour productivity in regions with lower incomes causes more uneven income distribution, whereas in the case of foreign direct investment, the effect is opposite.

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