Left-behind places in central and eastern Europe—labour productivity aspect

Abstract

In the 21st century, there have already been a series of economic downturns, particularly the Subprime Crisis 2007–2009 and the Covid-19 pandemic in 2020. All those events triggered changes in productivity, economic performance and structure. The main objective of this study is to identify the regions left behind in the Central and Eastern European (CEE) countries and to analyse the structural and productivity changes taking place within them. In our analysis, we aim to verify the research hypothesis that all left-behind regions in CEE have similar economic structures with a high share of agriculture. The research period covers the years from 2010 until 2020 using data from the Eurostat database. In the first phase of our analysis, we analysed employment, Gross Value Added (GVA) and productivity data for 11 CEE countries. Then, we analysed the Nomenclature of Territorial Units for Statistics at level 3 (NUTS3) regions, and Poland, which is a NUTS2 region. Left-behind regions are defined as those with low productivity and low growth rates. We provide a detailed analysis of the best and worst performing regions in terms of productivity for each country using productivity data and shift-share decomposition of productivity growth rate. Left-behind regions for each CEE country have been identified, and these are BG333, BG342, CZ080, EE004, HR023, HU332, LT027, LV005, PL72, RO216, RO312, SI032, SI035, SI038 and SK032. In our analysis, our hypothesis analysing the relationship between agriculture share in total employment and the productivity level of the region was not confirmed.