the geography of regional development and competitiveness across europe. a framework analysis
TRANSCRIPT
The Geography of Regional Development and Compe��veness Across Europe.
A Framework Analysis
Vi�orio Amato Department of Poli�cal Sciences University of Napoli Federico II
Economic development and GDP
Economic development is commonly expressed in terms of GDP, which in the regional context may be used to measure macroeconomic ac�vity and growth, as well as providing the basis for comparisons between regions.
Up un�l the onset of the financial and economic crisis, the economic differences between European regions were being reduced, as ‘poorer’ regions generally moved closer to “richer” regions through a process of convergence.
However, the financial and economic crisis had a widespread effect on many regions and the post-‐crisis period shows evidence of growing dispari�es, especially in some areas most severely affected by the crisis.
Purchasing Power Standard (PPS)
GDP is ini�ally calculated by EUROSTAT in na�onal currencies, and then converted by purchasing power pari�es (PPPs) which take account of different price levels between EU Member States, allowing for a more meaningful comparison.
By using PPPs (rather than market exchange rates) these indicators are converted into an ar�ficial common currency called a Purchasing Power Standard (PPS).
The use of a PPS makes it possible to compare purchasing power across the regions of EU Member States that use different currencies and where price levels are different.
Value of EU-‐28 GDP
GDP in the EU-‐28 was valued at EUR 12.712 billion in 2011, which equated to an average level of 25.100 PPS per inhabitant.
Map 1: Gross domes�c product (GDP) per inhabitant, in purchasing power standard (PPS), by NUTS 2 regions, 2011 (% of the EU-‐28 average, EU-‐28 = 100)
Inner London 321% of average
Nord-‐Est 29% of average
Ranking of NUTS 2 regions by purchasing power standard (PPS) 2011 (% of the EU-‐28 average, EU-‐28 = 100)
0,00
50,00
100,00
150,00
200,00
250,00
300,00
350,00
Inne
r Lon
don
Bra�
slavský kraj
Obe
rbayern
Switz
erland
Salzb
urg
Berkshire
, Bucking
hamshire
and
Dü
sseldo
rf
Lomba
rdia
Obe
rpfalz
Övre Norrla
nd
Schw
aben
Prov
incia Au
tono
ma di Trento
Prov
. Braba
nt W
allon
Kassel
Obe
rfrank
en
Cataluña
Gieß
en
Smålan
d med
öarna
Nordjylland
La Rioja
Koblen
z Ligu
ria
Prov
ence-‐Alpes-‐Côte d'Az
ur
Marche
Região
Autón
oma da
Mad
eira
Haute-‐Norman
die
Leipzig
West Y
orkshire
Centre
Grea
ter M
anchester
Bretagne
Bran
denb
urg
West M
idland
s Bo
rder, M
idland
and
Western
Derbyshire and
No�
ngha
mshire
Do
rset and
Som
erset
Cumbria
Prov
. Lux
embo
urg (BE)
İstanb
ul
Northern Ire
land
Sh
ropshire and
Staffo
rdshire
Ciud
ad Autón
oma de
Melilla
Jihov
ýcho
d Sterea
Ellada
Vz
hodn
a Slov
enija
Tekirdağ, E
dirne, Kırk
lareli
Wielkop
olskie
İzmir
Calabria
Campa
nia
Łódzkie
Jadran
ska Hr
vatska
Ipeiros
Guyane
Zo
ngulda
k, Karab
ük, B
ar�n
Ce
ntru
Észak-‐Alföld
Sud -‐ M
untenia
Trab
zon, Ordu, Gire
sun, Rize
, Artvin,
Form
er Yug
oslav Re
public of M
aced
onia
Severen tsen
tralen
Şanlıurfa, Diyarba
kır
38 regions (12,3%) below 50% of average
120 regions (38,5%) over average
150 regions (48,2%) between 100% and
50%
Map 2: Gross domes�c product (GDP) per inhabitant, in purchasing power standard (PPS), by NUTS 3 regions, 2011 (% of the EU-‐28 average, EU-‐28 = 100)
Inner London -‐ West 612% of average
Vaslui 21% of average
Ranking of NUTS 3 regions by purchasing power standard (PPS) 2011 (% of the EU-‐28 average, EU-‐28 = 100)
0,00
50,00
100,00
150,00
200,00
250,00
300,00
350,00
400,00
450,00
Wolfsbu
rg, K
reisfreie Stadt
Ding
olfin
g-‐Land
au
Heidelbe
rg, Stadtkreis
Wien
Osnab
rück, K
reisfreie Stadt
Auße
rfern
Zuidoo
st-‐Noo
rd-‐Braba
nt
Schw
äbisc
h Ha
ll Sieg
en-‐W
i�ge
nstein
Firenze
Man
tova
Ravenn
a Po
rden
one
Schw
ando
rf
Gö�ng
en
Bochum
, Kreisfreie Stadt
Arr. Sint-‐Niklaas
Västman
land
s län
Rh
ön-‐Grabfeld
Hampshire CC
Savo
na
Erlang
en-‐Höchstadt
Vercelli
Portsm
outh
Kymen
laakso
Noo
rd-‐Drenthe
En
zkreis
Grosseto
Rhein-‐Sieg
-‐Kreis
Fuerteventura
Osnab
rück, Lan
dkreis
Neu
stad
t a. d
. Aisc
h-‐Ba
d Windshe
im
Neu
stad
t a. d
. Waldn
aab
Essex CC
Ge
ra, K
reisfreie Stadt
Oise
Schm
alkalden
-‐Meining
en
Jura
Zamora
Somerset
Orne
Baixo Mon
dego
Uecker-‐Ra
ndow
Ca
lderda
le and
Kirk
lees
Staff
ordshire CC
Spod
njep
osavska
South Te
essid
e Be
ira In
terio
r Sul
Réun
ion
Arr. Ath
South No�
ngha
mshire
Du
dley
Fthio�
da
Laris
a Av
e Częstochow
ski
Bansko
bystric
ký kraj
Pane
vėžio
apskri�s
Pilsk
i Ta
rnob
rzeski
Barany
a Ka
rditsa
Krap
insko-‐zago
rska žu
panija
Hatay, Kah
raman
maraş, O
sman
iye
Targov
ishte
Vidin
165 regions (12%) below
50%
493 regions (36%) over average
712 regions (52%) between 100% and 50%
GDP per inhabitant during the financial and economic crisis
During the financial and economic crisis, GDP per inhabitant in the EU-‐28 dropped from a high of 25.000 PPS in 2008 to 23.500 PPS in 2009 before par�ally recovering to 24.400 PPS in 2010 and then moving on to a level that was slightly above its pre-‐crisis peak, with an average of 25.100 PPS in 2011.
Map 3: Change of gross domes�c product (GDP) per inhabitant, in purchasing power standard (PPS), by NUTS 2 regions, 2008–11 (percentage points difference between
2011 and 2008; in rela�on to the EU-‐28 average)
Winners and loosers during the crisis
Map 3 bis: Change of gross domes�c product (GDP) per inhabitant, in purchasing power standard (PPS), by NUTS 2 regions, 2008–11 (percentage points difference
between 2011 and 2008; in rela�on to the EU-‐28 average)
Capital region of Poland + 17,3
Capital region of Slovakia
+18,9 Inner London -‐ 23,5
Gains and losses in GDP per inhabitant, in purchasing power standard (PPS), by NUTS 2 regions, 2008–11 (percentage points difference between 2011
and 2008; in rela�on to the EU-‐28 average)
-‐30,0
-‐25,0
-‐20,0
-‐15,0
-‐10,0
-‐5,0
0,0
5,0
10,0
15,0
20,0
25,0
Bra�
slavský kraj
Tekirdağ, E
dirne, Kırk
lareli
İzmir
Bursa, Eskişe
hir, Bilecik
Schw
aben
Unterfran
ken
Pomorskie
Łódzkie
Kassel
Adan
a, M
ersin
Leipzig
Salzb
urg
Detm
old
Kayseri, Sivas, Yozgat
Erzurum, E
rzincan, Baybu
rt
Vorarlb
erg
Prov
. Vlaam
s-‐Brab
ant
Warmińsko-‐Mazurskie
Prov
. Oost-‐Vlaa
nderen
Prov
ence-‐Alpes-‐Côte d'Az
ur
Tirol
Ağrı, Kars, Iğdır, Arda
han
Prov
. Nam
ur
Dresde
n Schleswig-‐Holstein
Prov
. Antwerpe
n Lüne
burg
Guad
elou
pe
Prov
incia Au
tono
ma di Bolzano
/Bozen
Ha
ute-‐Norman
die
Luxembo
urg
Aquitaine
Östra M
ellansverig
e Yu
zhen
tsen
tralen
Prov
. Braba
nt W
allon
Dél-‐A
lföld
Auvergne
Dé
l-‐Dun
ántúl
Hedm
ark og
Opp
land
Ce
ntre
Fran
che-‐Co
mté
Severoizt
oche
n Vý
chod
né Slovensko
Oslo
og Ak
ershus
Centro (P
T)
Västsverige
Puglia
Valle d'Aosta/Vallée d'Ao
ste
Toscan
a Friesla
nd (N
L)
Středn
í Čechy
Overijssel
Lincolnshire
Friuli-‐Ve
nezia
Giulia
Lomba
rdia
Região
Autón
oma da
Mad
eira
Gelderland
West W
ales and
The
Valleys
Emilia-‐Ro
magna
Vz
hodn
a Slov
enija
Kýpros
La Rioja
Lancashire
Berkshire
, Bucking
hamshire
and
Oxfordshire
Cana
rias
Anda
lucía
High
land
s and
Island
s Glou
cestershire
, Wiltshire
and
Bris
tol/B
ath area
West M
idland
s Zaho
dna Slov
enija
Hampshire and
Isle of W
ight
Comun
idad
Valen
cian
a Illes Balea
rs
Northern Ire
land
Sterea
Ellada
Th
essalia
Bedfordshire and
Her�o
rdshire
170 regions (55%) over average. 84 regions 5 ore more % points over.
138 regions (45%) under average. 69 regions 5 or more % points under.
Disposable incomes of private households
Disposable incomes of private households is in other words, “in-‐pocket” income that people can spend or save (once they have paid their taxes and social security contribu�ons and a�er they have received their social benefits).
The highest disposable income per inhabitant in 2011 was recorded in Luxembourg (a single region at this level of analysis), at 23.800 PPCS. This was just above the levels recorded in Oberbayern (Germany) and Inner London (the United Kingdom); these three regions were the only ones across the EU to record disposable income per inhabitant in excess of 23.000 PPCS in 2011.
The highest level of disposable income per inhabitant in Luxembourg was 5.5 �mes as high as that in the Nord-‐Est region of Romania (4.300 PPCS).
Map 4: Change of disposable income of private households, in purchasing power consump�on standard (PPCS), by NUTS 2 regions, 2008–11 (difference between
2011 and 2008 in PPCS per inhabitant)
158 regions gaining income
113 regions loosing income
Gains and losses in disposable income of private households, in purchasing power consump�on standard (PPCS), by NUTS 2 regions, 2008–11
(difference between 2011 and 2008 in PPCS per inhabitant)
-‐4.000
-‐3.000
-‐2.000
-‐1.000
0
1.000
2.000
3.000
Mazow
ieckie
Obe
rfrank
en
Lüne
burg
Obe
rpfalz
Düsseldo
rf
Obe
rbayern
Karls
ruhe
Trøn
delag
Opo
lskie
Nordjylland
Warmińsko-‐Mazurskie
Sydd
anmark
Mecklen
burg-‐Vorpo
mmern
Stredn
é Slov
ensko
Podk
arpa
ckie
Övre Norrla
nd
Östra M
ellansverig
e Alsace
Pays de la Loire
Salzb
urg
Közép-‐Du
nántúl
Corse
Severovýchod
Picardie
Prov
. Antwerpe
n Limbu
rg (N
L)
Vzho
dna Slov
enija
Sud -‐ M
untenia
No�
o Aigaio
Marche
Utrecht
Devo
n Ba
silicata
Noo
rd-‐Holland
Ze
elan
d An
dalucía
Shropshire and
Staffo
rdshire
He
refordshire
, Worcestershire
and
Warwickshire
South Yo
rkshire
So
uth Western Scotla
nd
Cheshire
Essex
Outer Lon
don
Bucureş� -‐ Ilfov
Inne
r Lon
don
Thessalia
113 regions loosing. Among these 30 loosing more than 1.000 PPCS
158 regions gaining. Among these 78 gaining more than 1.000 PPCS
Disposable income of private households, in purchasing power consump�on standard (PPCS), by NUTS 2 regions, 2011
0
5.000
10.000
15.000
20.000
25.000 Lu
xem
bour
g
Aus
tria
Ger
man
y
Fran
ce
Bel
gium
Sw
eden
Uni
ted
Kin
gdom
Italy
Finl
and
Irela
nd
Net
herla
nds
Spa
in
Den
mar
k
Gre
ece
Slo
veni
a
Por
tuga
l
Slo
vaki
a
Cze
ch R
epub
lic
Lith
uani
a
Pol
and
Hun
gary
Est
onia
Bul
garia
Rom
ania
Latv
ia
Nor
way
Capital region
National average
Other NUTS regions
Map 4 bis: Change of disposable income of private households, in purchasing power consump�on standard (PPCS), by NUTS 2 regions, 2008–11 (difference between 2011
and 2008 in PPCS per inhabitant)
Regional compe��veness
The regional compe��veness index (RCI) (Annoni and Diijkstra, 2013) is based on NUTS2 regions. It extends the tradi�onal analysis of compe��veness as a purely economic measure to incorporate social elements too. In this way, the defini�on of compe��veness moves beyond the perspec�ve of businesses to also integrate the perspec�ves of residents/consumers.
RCI may therefore be summarised as: “the ability to offer an a�rac�ve and sustainable environment for firms and residents to live and work “.
Data seem to demonstrate that territorial compe��veness in several EU Member States has a strong regional dimension which cannot be observed from an analysis at the na�onal level.
A possible scenario could be this:
In many cases economic and social differences between neighbouring regions have grown to the point where there are considerable flows of people from one region to another; this could lead to: a deteriora�on in the quality or cost of services both in rela�on to the stress on the overburdened region and the inefficiency in the depopulated area,
a deteriora�on in social cohesion, even abandonment of land and / or property in the depopulated area.
Map 5: Regional compe��veness index, by NUTS 2 regions, 2013
Top 10 most and least compe��ve regions in the EU-‐28, by NUTS 2 regions, 2013
Map 5 bis: Regional compe��veness index, by NUTS 2 regions, 2013 _4 classes
GDP per inhabitant compared with the regional compe��veness index (RCI), by NUTS 2 regions, 2011 and 2013
-2,00
-1,50
-1,00
-0,50
0,00
0,50
1,00
1,50
0 50 100 150 200 250 300 350
Reg
iona
l com
petit
iven
ess
inde
x, 2
013
(EU
-28
= 0)
GDP per inhabitant, 2011 (EU-28 =100)
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Worst: High GDP low RCI
Normal: High GDP High RCI
Normal: Low GDP low RCI
Utrecht Inner London
Severozapaden
Best: Low GDP high RCI
Provincia Autonoma di Bolzano/Bozen
Essex