A COMPARATIVE ANALYSIS OF INCLUSIVENESS AND ITS IMPLICATIONS FOR ECONOMIC DEVELOPMENT: HOW MOLDOVA, GEORGIA AND UKRAINE ALIGN WITH EU MEMBER STATES IN BENEFIT-SHARING AND PARTICIPATION
A COMPARATIVE ANALYSIS OF INCLUSIVENESS AND ITS IMPLICATIONS FOR ECONOMIC DEVELOPMENT: HOW MOLDOVA, GEORGIA AND UKRAINE ALIGN WITH EU MEMBER STATES IN BENEFIT-SHARING AND PARTICIPATION

Author(s): Rodica Pisica
Subject(s): Social Sciences, Economy, Socio-Economic Research
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: EU enlargement; Inclusiveness Index; Principal Component Analysis; k-means clustering; Granger causality
Summary/Abstract: This paper presents a comparative analysis of inclusiveness among the new EU candidate countries—Moldova, Ukraine, and Georgia—alongside the EU-26 member states, focusing on benefit-sharing and participation as crucial elements of economic integration. Using data from 2006 to 2019, the research applies Principal Component Analysis (PCA) to construct an inclusiveness index that quantifies and compares economic and social outcomes (income inequality, poverty, and employment). Subsequent k-means clustering classifies the countries into groups based on levels of inclusiveness, revealing variations in adaptation to EU social and economic standards. Additionally, the Granger causality test demonstrates that the computed inclusiveness index Granger-causes GDP per capita at lags 3 and 4. The findings indicate differential progress among the new candidate countries, each showing unique trajectories in aligning with the EU’s inclusive growth framework. This analysis provides insights into the efficacy of EU-associated reforms and their impact on socio-economic disparities. The research not only highlights the variations in inclusiveness across the 26 European Union member states and the three new candidate states but also provides certain implications for policy interventions to support the EU's enlargement agenda.

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