Spatial Dynamics of Regional Competitiveness in Central and Eastern Europe

Authors: Csaba Lakócai, Luigi Capoani

In: Global Economic Observer, 2(11), 13-21.

Abstract

Our study examines the territorial structure of 11 Central and Eastern European (CEE) Member States of the EU in NUTS 2 regional breakdown, considering the regional competitiveness as of the situation over the last couple of years. We focus our research on the question whether the regional competitiveness scores of the CEE regions are spatially auto-correlated. Then, we further analyze the determinants of the existing spatial concentrations. Methodologically, we apply quantitative analyses, including descriptive statistics and data visualization, as well as standard and spatial regression modeling. Our results confirm that the spatial neighborhood effect has a significant explanatory power for the regional competitiveness in CEE. Besides that, developing the high technology and knowledge intensive sectors, together with fostering social integration and inclusion, are crucial for improving the competitiveness of the CEE regions.

Keywords: Central and Eastern Europe, Regional Competitiveness, Spatial Development