Factors Influencing the Rating of Regional Economic Performance or Reasons why Prague has Become the 6th Best Economically Performing Region of the EU

Abstract

Regional Gross Domestic Product per capita is a key indicator for the distribution of financial resources within the Structural Funds in the EU. With regard to this fact, an increasing attention is also paid to this indicator in the Czech Republic (especially after its accession to the EU). Regional GDP per capita is often incorrectlypresented as the indicator of economic well-being of the population residing in the region. Some factors with significant impact on the value of regional GDP per capita and/or the ranking of regions in this international comparison are neglected. These factors include, for example, commuting to work, NUTS classification and/ or units of measure (PPS versus euro) etc. The analysis shows the influence of these factors.

Keywords

• Gross domestic product (GDP)
• nomenclature of territorial units for statistics (NUTS)
• purchasing power standards (PPS)
• purchasing power consumption standards (PPCS)
• net disposable income of households
• exchange rate deviation Index (ERDI)