The European economic space: New aspects of regionalization

Abstract

European continent is very diverse in physical, demographic, economic and social aspects. During the past times different processes shaped European continent producing different economic environment across the whole continent. Economic regionalisation is complex in particular due to economic space dynamism. This made regional disparities within existing geographical regions so big that changeability of economic regions boundaries could not be overlooked. The paper provides a completely new aspect of the economic regionalization, using Data Envelopment Analysis method (DEA). Some relevant economic (financial and macroeconomic stability), demographic and social indicators have been chosen to calculate composite index (Regional Development Index - RDI), considering each of these categories through calculated sub-indexes. The given methodology is developed for the purpose of revealing regional disparities within existing European economic regions and provides an excellent tool for evaluating efficiency of possible regional and economic policies.[Project of the Serbian Ministry of Education, Science and Technological Development, Grant no. 179065: The state role in the new economy growth model in Serbia and Grant no. 179005: The risks of financial institutions and markets in Serbia- microeconomic and macroeconomic approach]

Keywords

• economic region
• Data Envelopment Analysis
• Regional Development Index
• regionalization