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Regional Inequalities In The European Union And The Role Of Institutions

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  • Vinko Muštra
  • Blanka Škrabić

Abstract

type="main"> This research extends the literature on regional inequalities in the European Union in two directions. First, it confirms the importance of institutions for regional inequalities among 18 EU member countries, and second, indicates which dimension of the institutional quality is important by using the six dimensions of the Worldwide Governance Indicator. The results support standard “rules of engagement” that reduce transaction costs by lowering uncertainty and facilitating the mutual trustworthiness of individual economic agents that spread equally among regions in specific countries. In addition, we interpret empirical evidence to determine that institutions also shape regional inequalities indirectly through political channels.

Suggested Citation

  • Vinko Muštra & Blanka Škrabić, 2014. "Regional Inequalities In The European Union And The Role Of Institutions," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 26(1), pages 20-39, March.
    • Handle: RePEc:bla:revurb:v:26:y:2014:i:1:p:20-39
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    Cited by:

    1. Riccardo Pozzi & Rosalba Rombaldoni & Edgar J.Sanchez Carrera, 2018. "Inequalities, spatial disparities and agglomeration of economic activity in European regions," Working Papers 1805, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2018.
    2. Carrera, Edgar J. Sánchez & Rombaldoni, Rosalba & Pozzi, Riccardo, 2021. "Socioeconomic inequalities in Europe," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 307-320.

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