Evolution of Determinants of Regional Development in Selected European Union Countries

Purpose: Regional development can be understood as a complex economic category describing a multidimensional, heterogeneous, and long-term process aimed at enhancing the existing state of a given region based on established criteria. The purpose of this article is to determine whether the significance of the determinants of such development remains constant over time and across different regions. Design/Methodology/Approach: Weights for the selected nine variables describing regional development were determined using the distance minimization method. The study was conducted on 158 regions across eight European Union countries, using data from 2010 and 2023. Findings: Beyond the challenge of selecting variables that characterize regional development, it is also essential to ascertain the significance of individual indicators by assigning them specific weights. In the literature, there is often a tacit assumption that all selected diagnostic variables are assigned equal weight. However, such an approach overlooks the structure of the object, data quality, and so on. Practical Implications: Precisely determining weight values that reflect the importance of various variables in the context of regional development can be valuable in identifying priority areas to be considered in a range of socio-economic decision making processes. Originality/Value: This article presents the potential application of distance-minimization methods to weigh the significance of factors determining regional development.