Local Dimensions of Regional Income Inequalities in the 2010s - Geographical Proximity Based Experiences from Hungary

Egri, Zoltán (2023) Local Dimensions of Regional Income Inequalities in the 2010s - Geographical Proximity Based Experiences from Hungary. DETUROPE: CENTRAL EUROPEAN JOURNAL OF TOURISM AND REGIONAL DEVELOPMENT, 15 (1). pp. 95-124. ISSN 1821-2506 (In Press)

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Abstract

In this paper, we look at how geographical proximity influences settlement income trends in the period following the 2008 economic crisis. In the first part of the paper, we highlight the general impact of geographical proximity effects on socio-economic processes, followed by a discussion of the spatiality of income inequality phenomena in Hungary. The income inequality analyses are carried out using spatial econometric methods: global and local spatial autocorrelation (Global and Local Moran I, Getis-Ord General G, Getis-Ord Gi*), kernel density estimation, and ‘spaceless’ Markov-, Spatial- and LISA Markov chains expressing income mobility. Our LISA Markov chain analysis is experimentally based on the Getis-Ord Gi* categories, which, to the best of our knowledge, is unique in the spatial econometric income inequality literature. The results show that spatial income processes in the 2010s are related to both Myrdal's theory of cumulative causality and Richardson's theory of polarization reversal. In a period of income expansion, territorial income spillovers are limited and localised, and in practice reinforce the contiguous central region west of the capital, while peripheral regions are not significantly dissolved and in many cases are re-enforced. The results of the period under review highlight that Hungary is still a transitional country in terms of spatial inequalities.

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