Regional Economic Inequality in Poland: The EU Effect

Abstract This study investigates regional productivity disparities in Poland at the NUTS-3 level, comparing the results of 2018 with 2005. Using a revised Shift-Share method, we examine the change in indicators to examine how regional productivity has evolved since Poland acceded to the EU. Framed by the Sustainable Development Goal 10 and theories on regional convergence, this research hypothesises that while EU membership fosters national growth, it may exacerbate regional productivity inequalities (H1). We assume that regional circumstances are the cause of inequality (H2). The Shift-Share analysis is innovatively adopted at the NUTS-3 level to address this. It adds to the methodology of regional studies by proposing a new method to compare regional productivity. Furthermore, the expected increase of regional inequality in regional income is measured using a Theil index. The analysis reveals that labour productivity has risen unevenly across Polish regions between 2005 and 2018. It is found that region- specific factors are largely responsible for the inequality of regional GDP. The study concludes that regional economic policies have to target region-specific factors influencing productivity to mitigate inequality, emphasizing the utility of the adapted Shift-Share method as a diagnostic tool for policymakers.