Analysis of regional income inequalities in Hungary between 2010 and 2019

Abstract

Research on social and economic development and regional competitiveness has long been a high priority area in the social sciences, both domestically and globally. Many dominant international models relate changes in regional competitiveness to the volume of investment, physical capital and improvements in the income situation of citizens. This suggests that the promotion and implementation of investment has the greatest impact on regional development, as it generates technological innovation and innovation in order to raise the skills of the available labour force, employ human resources at higher wages and thus raise living standards. In conclusion, the Hungarian regional competitiveness strategy should help improve the living standards of people living in local areas, so that life can become more attractive in regions that are currently less competitive from an economic point of view and can be considered peripheral. To achieve this goal, it is necessary not only to level out the living standards of those living in these areas and to improve certain competitiveness indicators, but also to change attitudes, so that income levels can be improved and territorial disparities reduced in the future. In this study, in order to show regional development disparities, we examine the population income inequality of the domestic districts (LAU1) for the period 2010-2019. Our aim is to show the income spatial structure and to explore the change in inequalities over time. In addition, in the context of the change in income relations, we delineate the competitive and less competitive income areas of Hungary and their interrelationships.