Regional Economic Disparities in Europe: Time-Series Clustering of NUTS 3 Regions

Abstract

The aim of this research is to identify the regional economic disparities in the level of economic wealth and its dynamics in the NUTS 3 regions in EU28 over the period from 2000 to 2017. By performing a time-series clustering analysis at NUTS 3 level, we expect to uncover the economic disparities that might have been hidden in the aggregate NUTS 2 regions. Our results indicate that at a finer spatial scale (NUTS 3 level) disparities flourish, particularly in the period after the global crisis of 2008, in which different recovery rates are observed. In general, NUTS 2 regions tend to spatially cluster at the national level and, although NUTS 3 regions show slightly this tendency as well, the spatial effect is not as strong as it is for NUTS 2 level, revealing specific behaviours of the local economies and markets that remain hidden at the aggregate NUTS 2 level.